Initial Jobless Claims Make Surprise Decline

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Peoples Home Equity comments on Thursday's decline of initial jobless claims from the U.S. Department of Labor.

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Thursday's initial jobless claims number marks the lowest number of claims since May 12, 2007.

Peoples Home Equity was very happy to see both US jobless claims and continuing claims decline for last week. The news bodes well for U.S. labor markets and the probability of more Americans applying for a home loan.

The U.S. Department of Labor announced on Thursday, April 10th that initial jobless claims were just 300,000 for the weekend on April 5th. Thursday's initial jobless claims number marks the lowest number of claims since May 12, 2007, which is a pre-recession level! Market analysts were surprised by Thursday's announcement expectations were for a reading of 320,000, a -3.6% decline from last week’s 332,000 figure. Instead, claims declined a whopping -9.63%, In addition, continuing claims, which are those individuals who are currently unemployment at receiving benefits as of 2 weeks ago, reached an 18 week low. Initial claims has decline for 8 of the past 13 weeks while initial jobless claims have declined for just 6 of the past 13 weeks. However, the 4-week moving average for initial jobless claims declined from 321,000 to just 316,500. Peoples Home Equity was expecting to see initial jobless claims move lower and lower as the labor environment improves in the United States. If claims hold around 315,000 claims a week, then Peoples Home Equity expects the unemployment rate to decline for April.

The announcement shows that the U.S. labor market is strengthening and that the unemployment rate should continue trending lower in the coming months. As less Americans are applying for benefits, it implies they are becoming employed. As more individuals become employment, more have the opportunity to apply for a mortgage. Thus, Peoples Home Equity continues with its belief that a surge in weekly mortgage applications, which was not seen yesterday, will be announced soon.

If interested in securing a competitive, lower rate mortgage, consider speaking with a Peoples Home Equity loan officer today details at: (855)-897-0300.

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Giorgio U Ferrero
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