In several of my previous blogs I have talked about prices on homes being at a 10 year low. Home loan rates are at historic low rates as well, the missing piece to our economic recovery is jobs. The following news release by the Economists from the NAR tell us that if new jobless claims remain around 350,000 we will be adding 3 million new jobs in the next 12 months. That’s a nice trend to be adding to low prices on homes and low interest rates.
Posted: 29 Mar 2012 11:12 AM PDT
Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update discusses jobless claims.
- § Initial unemployment insurance claims continue falling down to record lows since the start of recovery. New claims fell 5,000 to 359,000 for last week, while the four-week average is also down 3,500 to 365,000. A level of 400,000 is usually viewed by economists as suggesting improvement in the labor market with more job creations than job losses. The four-week average has been on a continual downward slope since September of last year. Continuing claims also fell by a significant 41,000 to 3.340 million. If the figure for new jobless claims remains at around 350,000, it would generally be associated with nearly 3 million net jobs created for the year.