Jobs Key to Housing Recovery

Some recovery in the labor market and record low mortgage rates could help offset some of the pressures on the housing market, according to a new study released by the Joint Center for Housing Studies at Harvard University.

“Right now, economists expect the unemployment rate to stay high, but if employment growth surprises on the upside or downside, housing numbers could too,” Eric Belsky, executive director of the center, said in a statement.

Home owners’ level of debt relative to equity stood at a record 163 percent at the beginning of the year, and housing costs have become a severe burden for more borrowers, the center adds.

Source: Reuters, Al Yoon (06/14/10)