US Jobless Claims Remain Near 57-Year Low as New Home Sales Increase

New applications for US unemployment benefits remained close to their lowest level in nearly six decades last week, pointing to renewed stability in the labor market after a weaker stretch during the summer.

The Labor Department reported that initial claims for state unemployment benefits fell by 1,000 to a seasonally adjusted 197,000 for the week ending September 19. The figure was below economists' expectation of 201,000 and remained close to levels recorded in 1969.

The four-week average of new claims, which smooths out weekly fluctuations, declined by 1,750 to 202,250. Economists said low layoffs have helped keep the labor market stable, although businesses continue to be cautious about increasing hiring.

Companies are holding on to existing workers but remain hesitant to expand their workforces. Economists have pointed to uncertainty linked to the Iran war and import tariffs, while tighter immigration conditions and retirements have also reduced the available labor supply.

The number of people continuing to receive unemployment benefits rose by 2,000 to 1.719 million for the week ending September 12. Despite the increase, continuing claims remained close to levels last recorded in May 2023.

The latest employment data also supported expectations that the Federal Reserve could raise interest rates again before the end of the year as it continues to address inflation. Investors were pricing in a 64.2% probability of another increase in October, according to CME's FedWatch tool cited in the report.

The report also highlighted developments in the US housing market. New single-family home sales increased 6.4% in August to a seasonally adjusted annual rate of 684,000, exceeding economists' forecast of 615,000 and reaching their highest level since December 2025.

The increase came as builders offered more price reductions and incentives to attract buyers. The median price of a new home fell 5.8% from a year earlier to $393,700.

However, higher mortgage rates continued to weigh on the housing market. The average 30-year fixed mortgage rate reached 7.03% during the week, while the supply of unsold new homes remained elevated at 483,000 units.

At August's sales pace, it would take approximately 8.5 months to clear the available inventory, compared with 9.0 months in July. The report said economists expect residential investment, including homebuilding and sales, to return to a declining trend following a modest recovery in the second quarter.