Reports on the economy have been tinged with a modest note of optimism of late ever since U.S. job statistics picked up and unemployment dropped. As the New York Times put it recently, “Only days after many voters complained of worsening economic prospects, the new employment report from the government on Friday provided fresh evidence that the economy was actually getting better.” But underneath some of that good news, there’s some bad news, too—not only the decades-long trend towards wage stagnation, but the continued spate of home foreclosures.On Friday the Washington Post reported that foreclosures related to the collapse of the housing bubble are up nationwide. In October, the rate of foreclosures went up 24 percent from September, which is also seven percent higher than the last year’s rate. Banks were temporarily held up in by various federal regulations from foreclosing on these homes after the recession hit in 2006, but no longer. More:
While there is no longer a deluge of foreclosures hobbling the housing market, the auctions that are underway are a reminder of the residual effects of the crisis. “The rise in foreclosure auctions indicates that the banks and the courts are preparing for a spring cleaning,” Blomquist said […]Overall, foreclosure activity increased from a year ago in 10 of the nation’s 20 largest metro areas.
The crisis that created the Great Recession is over, but for many people the lingering effects are still putting a damper on their wealth and prospects. Good job numbers, however worthy of celebration they might be, can’t erase that fact.