A good sign? The number of Americans seeking unemployment benefits dropped last week to the lowest level since early April, a sign the job market may be healing after a recent slump. The Labor Department says weekly applications fell 24,000 nationwide to a seasonally adjusted 398,000. That’s the first time applications have fallen below 400,000 in 16 weeks. The four-week average, a less volatile measure, dropped to 413,750, the lowest since the week of April 23. Applications had fallen in February to 375,000, a level that signals healthy job growth. But they then surged to an eight-month high of 478,000 in April and have declined only slowly since then. Some of the drop likely reflects seasonal volatility. Applications were elevated earlier this month partly because of temporary layoffs in the auto and other manufacturing industries; those layoffs are ending. Many auto companies close their factories in early July to prepare for new models.
But rebound isn’t imminent: The number of people who signed contracts to buy homes rose for a second month in June. But the gain was not enough to signal a rebound in the weak housing market. The National Association of Realtors says its index of sales agreements for previously occupied homes rose 2.4% in June to a reading of 90.9. A reading of 100 is considered healthy by economists. The last time it was that high was in April 2010. The report is typically a reliable indicator of where the housing market is headed. There’s usually a one- to two-month lag between the signing of a sales contract and a completed deal. But the Realtors group says a growing number of contracts have been canceled ahead of closings because of low appraisals.
