Although the U.S. housing market begins to show signs of recovery with the pending home sales index spiking to 6.7 percent in April, Mike Mandel, chief economist at Business Week, said foreclosures are now popping up in the higher end of the housing market, which will further delay recovery. Since the unemployment rate has jumped to 4.4 percent for those with bachelor’s degrees or higher, more than double the rate of 2 percent a year earlier, homes at the higher end of the market are either not selling or falling into foreclosure. “There is a 40-month supply of homes that are $700,000 or higher,” said Peter Coy, economics editor for Business Week. According to a May 28 report from the Mortgage Bankers Association, prime fixed-rate loans now represent the largest share of new foreclosures on the market.