Americans seeking jobless fell last week

WASHINGTON – The number of Americans seeking unemployment benefits fell slightly last week to 900,000, still a historically high level that points to ongoing job cuts in a raging pandemic.

The Labor Department’s report Thursday underscored that President Joe Biden has inherited an economy that faltered this winter as virus cases spiked, cold weather restricted dining and federal rescue aid expired.

The government said 5.1 million Americans are continuing to receive state jobless benefits, down from 5.2 million in the previous week.

That suggests that while some of the unemployed are finding jobs, others are likely using up their state benefits and transitioning to separate extended-benefit programs.

More than 10 million people are receiving aid from those extended programs, which now offer up to 50 weeks of benefits, or from a new program that provides benefits to contractors and the self-employed.

Long-term mortgage rates remain near record low

WASHINGTON – U.S. long-term mortgage rates slipped this week while remaining at record-low levels.

Mortgage buyer Freddie Mac reported Thursday that the average rate on the benchmark 30-year fixed-rate home loan eased to 2.77% from 2.79% last week.

By contrast, the rate stood at 3.60% a year ago.

The average rate on 15-year fixed-rate loans, popular among homeowners seeking to refinance their mortgages, declined to 2.21% from 2.23%.

The damage from the coronavirus pandemic on the U.S. and global economies suppressed home loan rates through most of last year.

Long-term bond yields, which can influence interest rates on mortgages and other consumer loans, have climbed recently amid expectations of higher U.S. government spending on pandemic relief and an economic recovery as more people get vaccinated for COVID-19.

Nation’s housing starts increase during December

WASHINGTON – U.S. home construction jumped 5.8% in December to 1.67 million units, a 14-year high that topped the strongest annual showing from the country’s builders in 15 years.

The better-than-expected December gain followed an increase of 9.8% in November, when housing starts climbed to a seasonally adjusted annual rate of 1.58 million units, the Commerce Department reported Thursday.

The December pace was the strongest since the building rate reached 1.72 million units in September 2006.

For the year, construction began on 1.45 million units, up 4.8% from 2019 and the best pace since construction starts totaled 1.8 million units in 2006.

That period included a massive U.S. housing boom that eventually burst, kicking off the catastrophic 2007-09 recession.

Housing has been one of the star performers this year, even as the overall economy has been wracked by the spread of the coronavirus. Record-low mortgage rates and the migration of Americans to larger homes better suited for home offices during the pandemic has fueled demand.

From wire reports