Unemployment benefit applications plummet

WASHINGTON – The number of people applying for U.S. unemployment benefits dropped by a sharp 36,000 last week to a seasonally adjusted 280,000, a sign that the job market is strengthening.

The four-week average of applications, a less volatile measure, fell 4,750 to 299,500, the Labor Department said Thursday. The total number of people collecting benefits during the first week of September was 2.43 million, the fewest since May 2007.

Home construction falls sharply in August

WASHINGTON – U.S. home construction plunged in August, led by steep decline in the volatile apartment category. But single-family house construction, a larger and more stable portion of the market, fell only modestly.

Construction fell 14.4 percent in August to a seasonally adjusted annual rate of 956,000 homes, the Commerce Department said Thursday. This reverses the sharp gains in July when the rate of new construction rose to 1.12 million homes, the highest annual rate since 2007.

Last month’s decrease primarily came from builders starting fewer apartment complexes, which plummeted 31.5 percent compared to July. Apartments have propelled much of the growth in residential construction during the past year, but the pace has been volatile from month to month. Apartment starts surged 51 percent in July.

In August, the building of single-family houses fell 2.4 percent.

Wal-Mart plans to hire 60,000 for holidays

NEW YORK – Wal-Mart Stores Inc. says it plans to hire 60,000 temporary workers for the crucial holiday season, an increase of nearly 10 percent from last year.

The world’s largest retailer also emphasized that current workers who want more hours during the holidays will get priority. The retailer has been criticized by labor groups for low pay and intentionally keeping employees’ hours low.

Wal-Mart, based in Bentonville, Arkansas, said the holiday hiring includes workers in stores and distribution centers. The discount retailer said a number of factors are driving the increase, including a focus on better customer service and the fact that it has about 200 more U.S. Wal-Mart stores than last year, bringing its total to about 4,300.

About 25 percent of the seasonal workers will stay on in permanent roles, Wal-Mart said.

30-year mortgage rate increases to 4.23%

WASHINGTON – Average long-term U.S. mortgage rates surged this week, marking their largest one-week gain this year.

Mortgage company Freddie Mac said Thursday the nationwide average for a 30-year loan jumped to 4.23 percent from 4.12 percent last week. The average for a 15-year mortgage, a popular choice for people who are refinancing, rose to 3.37 percent from 3.26 percent.

At 4.23 percent, the rate on a 30-year mortgage is at its highest level since the week ended May 1, though it is still at a historically low level.

The average rate on a five-year adjustable-rate mortgage rose to 3.06 percent from 2.99 percent. The fee was stable at 0.5 point.

For a one-year ARM, the average rate fell to 2.43 percent from 2.45 percent. The fee held at 0.4 point.