Initial Jobless Claims Show Change for the Better

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Peoples Home Equity comments on today's initial jobless claims report.

Peoples Home Equity was content to see initial jobless claims post a decline of -7.44% this morning. Continuing claims declined as well. This news comes on the advent of tomorrow's February unemployment report. The lender is hoping for the unemployment rate to at least hold steady at 6.6% for last month.

As shown on this morning, initial jobless claims declined from 349,000 to 323,000 for the week ending on February 28th. This number represents a 3 month low, initial claims have not been this low since the last reading of December. The 4-week moving average is now 336,500 which is good but Peoples Home Equity thinks there is still room for improvement, the lender thinks the average will decline as low at 320,000 over the coming 2 years.

Continuing claims also decreased last week but by only -0.27%. To summarize, initial jobless claims increase twice during the four weeks in February while continuing claims increased only once. The month was constructive for the labor market and Peoples Home Equity looks forward to tomorrow’s unemployment report. There is always a chance for surprises but the lender hopes for unemployment to remain steady at 6.6%. To see a further decline in the rate may be too aggressive at this time despite having seen on on Monday that the ADP employment report increased 9.44% in February. The lender also looks forward to seeing the monthly change in average hourly earnings have been positive since July 2013.

Ultimately, labor markets are important for housing. More Americans employed means implies more home sales and prices. Since home prices have increased significantly since 2010, investors are not buying up homes as much as they used to. Thus, first-time home buyers are becoming more important to the market. First-time home buyers are burdened with debt more so than past generations thus average hourly earnings is also an important factor in attractive individuals to purchase a home. Peoples Home Equity will be waiting for both economic announcements tomorrow morning. Stay tuned for the lenders opinion over the weekend.

Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300.

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Giorgio U Ferrero
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