Thursday's data duet: New home sales, jobless claims
SPY•U.S. new home sales rose 6.4% in August to a 684,000 annualized rate, while initial jobless claims were 197,000 last week. Continuing claims were 1.719 million.
1. Home sales rebound
Sales of newly built single-family homes increased 6.4% in August to a seasonally adjusted annual rate of 684,000, the largest percentage gain since March and 11.2% above analysts’ forecast of 615,000. The increase followed a revised 4.3% decline in July. Sales fell 36.1% in the Northeast and 15.2% in the West, while rising 84.9% in the Midwest and 6.9% in the South.
2. Claims remain low
Initial jobless claims totaled 197,000 last week, slightly below the prior week and 4,000 under consensus. The four-week average continued to move sideways. Continuing claims edged up 0.1% to 1.719 million, 26,000 below estimates.
3. Affordability concerns
One analyst said a decline in the National Association of Home Builders’ current sales index to a 12-month low in September suggested risks of another sales downturn as affordability worsened. A Nationwide economist said the labor market remained solid and unemployment was expected to stay low, while flagging stronger wage gains as a potential inflation concern.
