US Housing Market and Unemployment Data Due This Week
Investors and economists will closely monitor housing sales and jobless claims for insights into the economy's trajectory.
Wall Street is set to receive key economic updates this week, with a focus on the U.S. housing market and a regular report on unemployment claims.
On Thursday, the U.S. will release its August report on sales of newly-built homes. This report details the sale of new construction and homes under contract, distinguishing it from the monthly report on existing home sales which tracks previously occupied properties. The new home sales data offers insights into the supply and demand dynamics within the housing sector, providing Wall Street and economists with an understanding of market conditions for home builders and related industries.
Economists anticipate a slight increase in new home sales for August, a contrast to the decrease observed in the existing home sales report for the same month. The broader housing market is currently contending with rising mortgage rates and elevated home prices. Mortgage rates, already historically high at the start of the year, have continued to climb. This increase is partly attributed to geopolitical events impacting global oil supplies, which in turn have driven up long-term bond yields used by lenders to set mortgage rates.
Also on Thursday, the U.S. will issue its weekly jobless claims report. These claims serve as an indicator of layoffs and provide economists with insights into the direction of the job market. For the past year, unemployment claims have remained relatively stable within historically low ranges, reflecting a resilient job market despite ongoing inflation pressures on consumers and businesses.