Home sales slow to recover; unemployment benefits up
Sales of existing homes in the United States probably climbed in August to the second-lowest level on record, indicating housing remains depressed a year after the economic recovery began, economists said before a report today.
Home resales rose to a 4.1 million annual pace, beating only July’s 3.83 million figure in a decade’s worth of data, according to the median of 72 estimates in a Bloomberg News survey. Other reports may show jobless claims held at a two-month low and the index of leading indicators increased.
“Housing is showing no ability to move to the upside,” said Eric Green, chief market economist at TD Securities Inc. in New York. It will take gains in employment, an improvement in confidence and a decline in the number of houses on the market for the industry to rebound, he said.
Economists surveyed project the jobless rate will average more than 9 percent through 2011, undermining confidence and signaling that foreclosures will hinder real estate as households struggle to make mortgage payments. A distressed housing market was among reasons the Federal Reserve cited this week when it said it’s willing to take additional steps to spur growth.
Another report today showed applications for unemployment benefits unexpectedly rose last week, a sign companies remain cautious about hiring as economic growth slows. Initial jobless claims increased by 12,000 to hit 465,000 in the week ended Sept. 18, according to figures from the Labor Department. The total number of people receiving unemployment insurance declined, while those getting extended payments rose.
The index of leading economic indicators rose 0.3 percent in August, more than forecast, according to figures from the New York-based Conference Board.