- Ron Peltier, CEO of Berkshire Hathaway's real estate affiliate, HomeServices of America
The number of Americans applying for unemployment benefits unexpectedly jumped last week, but remained at levels consistent with an improving labour market. Initial claims for unemployment aid increased 7,000 to a seasonally adjusted 282,000 for the week ended May 23, according to the Labor Department. The number of claims for the prior week were revised to show 1,000 more applications received than previously reported. Despite last week's increase, claims remained below 300,000, a level associated with a strengthening jobs market, for a 12th consecutive week, an unusually long streak given a weak economic backdrop. The four-week moving average of claims, considered a better gauge of labour market trends as it excludes week-to-week volatility, rose 5,000 last week to 271,500.
A separate report showed contracts to purchase previously owned homes increased for a fourth consecutive month in April to the highest level in nine years, buoying the outlook for the housing market. According to the National Association of Realtors, its Pending Home Sales Index, based on contracts signed last month, jumped 3.4% to 112.4. The index now stands at its highest level since May 2006. The upturn comes after a year of solid hiring, which has increased demand to buy houses.
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