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US weekly jobless claims near 57-year lows; price reductions boost new home sales
Reuters • • business
Key Points:
- US initial jobless claims remained near 57-year lows last week, indicating a resilient labor market despite challenges from the Middle East conflict and rising energy prices.
- The unemployment rate is steady at 4.1% for September, supported by low layoffs and companies holding onto workers amid uncertainty from geopolitical tensions and trade issues.
- The Federal Reserve is expected to raise interest rates again this year to combat inflation, with recent data showing labor market stability allowing policymakers to focus on inflation risks.
- Rising mortgage rates and high Treasury yields are cooling the housing market, despite a recent surge in new home sales and builders offering incentives to attract buyers.
- The supply of unsold new homes remains high, and economists anticipate residential investment to continue declining after a brief rebound in the second quarter.
