Foreclosures and Unemployment

The BLS released the average states unemployment report today. One thing is for sure, there is a direct relationship between unemployment rates and foreclosures. Florida had the highest foreclosure rates, and Arizona and Nevada have higher foreclosure rates. This can be attributed to investors and overbuilding.

Arizona has an unemployment rate of 9.1% and a foreclosure rate of 18/3%, Nevada has an unemployment rate of 11.8% and a foreclosure rate of 24.7% and California has an unemployment rate of 11.4% and a foreclosure rate of 16.9%. Almost every state has a higher foreclosure percentage than the unemployment percentage, except for Oregon and Alaska.

In the vast majority of populated states there were significantly higher foreclosure percentages, with quite a few states having the number of foreclosures double the unemployment numbers.

This trend is more proof that as long as unemployment numbers are high this problem is going to be around for a long time. It is no longer a regional issue but a much more common problem through out the Country. Proof that unemployment levels definitely have a direct correlation to foreclosure rates.