The Labor Department reports that new applications for unemployment benefits last week rose by 7,000 to a three-month high of 265,000. Economists expected a seasonally adjusted 258,000. initial claims have been below 300,000 for 87 straight weeks, the longest streak since 1970. Continuing claims fell by 14,000 to 2.03 million in the week ended Oct. 22.
The Labor Department also reports productivity jumped at seasonally adjusted 3.1% annual pace in the third quarter. That’s the first gain since the fall of 2015 and largest advance in two years. Output of goods and services was up 3.4% while the amount of time employees worked was up only 0.3%. Productivity has barely risen 1% annually since 2007, compared to a 2.6% rate from 2000-2007 or 2.2% going back to the end of World War Two.
Freddie Mac reports the 30-year fixed-rate mortgage averaged 3.54% this week, up from last week’s 3.47%. A year ago it was 3.87%. The 15-year fixed averaged 2.84% up from 2.78%. A year ago it was 3.09%.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
