US weekly jobless claims near 57-year lows; price reductions boost new home sales
SPY•Initial jobless claims slipped 1,000 to 197,000, near levels last seen in 1969. New home sales rose 6.4% in August to an annualized 684,000, while the median price fell 5.8% year over year to $393,700.
1. Claims remain low
Initial claims for state unemployment benefits fell 1,000 to a seasonally adjusted 197,000 in the week ended September 19, below economists’ forecast of 201,000. The four-week average declined 1,750 to 202,250. Continuing claims increased 2,000 to 1.719 million in the week ended September 12, near levels last seen in May 2023.
2. Rate outlook and housing
The labor market data supported expectations of another Federal Reserve rate increase before year end. Investors priced in a 64.2% chance of a rate increase next month, while the 30-year Treasury yield climbed above 5.45%, its highest since 2004. New home sales rose 6.4% in August to an annualized 684,000, the highest level since December 2025, as the median price fell 5.8% from a year earlier to $393,700. Unsold inventory stood at 483,000 homes, equal to 8.5 months of sales.
