In each Economic Update, the Research staff analyzes recently released economic indicators and addresses what these indicators mean for REALTORS® and their clients. Today’s update discusses jobless claims.
- After three straight weeks of declining initial claims for unemployment insurance, claims surged by 78,000 claims to reach 439,000 for the week ending November 10. To note, initial claims data are volatile and preliminary and subject to revisions the following week. The weekly change in claims is much higher than normal which is in the order of about 10-15,000 claims.
- As of Nov 3, there are 3.34 million filing continued unemployment insurance claims.
- Today’s data indicates that job stability will continue to be a major factor in the decision of potential homeowners to purchase a home, despite the low interest rate environment and better home affordability. Uncertainty on how the fiscal cliff issue will play out in terms of the tax and expenditure measures will also likely impact on home buying. For example, there are reports in the October REALTORS® Confidence Index Survey that the possible sequestration of military spending is already affecting home buying in Virginia.
