US labor market resilient; existing home sales hit more than 16-year low in October
SPY•Initial jobless claims rose 9,000 to 200,000, while continuing claims fell 20,000 to 1.697 million. Existing home sales dropped 5.5% to an annual rate of 3.75 million, the lowest since August 2010, while the median price rose 0.4% year over year to $421,900.
1. Claims remain low
Initial claims for state unemployment benefits increased by 9,000 to a seasonally adjusted 200,000 in the week ended November 7, above economists’ 195,000 forecast. Continuing claims fell by 20,000 to 1.697 million in the week ended October 31. Economists said layoffs were expected to remain low through year-end, though seasonal volatility could affect claims.
2. Home sales fall
Sales of previously owned homes fell 5.5% in October to a seasonally adjusted annual rate of 3.75 million, below economists’ 3.85 million forecast and the lowest level since August 2010. Sales were down 8.8% from a year earlier. Inventory rose 1.3% to 1.590 million homes, while the median price increased 0.4% year over year to $421,900. The 30-year fixed mortgage rate averaged 7.11% in the latest week.
