Mortgage rates stay near bottom
Average U.S. mortgage rates rose slightly this week but the benchmark 30-year low remained very close to the 19-month low hit last week.
Mortgage company Freddie Mac said Wednesday that the nationwide average for a 30-year mortgage edged up to 3.83 percent this week from 3.80 percent last week, which had been the lowest level since May 2013.
Other mortgage rates were also up by small amounts but all remained near historically low levels that should be a boon to potential homebuyers. The average for a 15-year mortgage, a popular choice for people who are refinancing, stood at 3.10 percent, compared to 3.09 percent last week. The rate for a one-year adjustable rate mortgage rose to 2.39 percent, compared to 2.38 percent last week.
A year ago, the 30-year mortgage stood at 4.48 percent. The recent decline in rates has come despite the October end of the Federal Reserve’s monthly bond purchases which had been intended to keep long-term rates low.
Jobless claims fall to 7-week low
The number of Americans applying for unemployment benefits has reached its lowest level in seven weeks, a sign that the U.S. economy and job market are steadily improving.
The Labor Department said Wednesday that applications for unemployment benefits dropped 9,000 last week to a seasonally adjusted 280,000. The four-week average, a less volatile measure, declined 8,500 to 290,250. That average has plunged 16 percent in the past 12 months.
“What we have seen in the data over the past few months looks favorable for the labor market,” said Daniel Silver, an economist at JPMorgan Chase.
Applications are a proxy for layoffs. The number of people seeking jobless benefits has been at historically low levels — below 300,000 — for 14 of the past 15 weeks. That indicates that companies are retaining their workers and potentially looking to hire with the expectation that economic growth will continue.
As applications for benefits have steadily dwindled, hiring has improved. Employers added 321,000 jobs in November, the most in nearly three years. The unemployment rate held steady at 5.8 percent, down sharply from 7 percent 12 months earlier.
In the first 11 months of this year, employers have added 2.65 million jobs. That already makes 2014 the best year for hiring since 1999.
Honda recalls 1,252 Crosstours
Honda is recalling 1,252 Crosstour vehicles due to a faulty side air bag made by troubled air bag supplier Takata.
The Honda recall is for 2015 model year Crosstours. The National Highway Traffic Safety Administration says the side air bag may not inflate properly because of a problem with its inflator tube. Crosstour owners will receive a letter in the mail asking them to take their car to a Honda dealer and have the side air bags replaced free of charge.
Honda said no injuries were reported. Takata Corp. declined to comment.
Takata, a Japanese air bag maker, is at the center of massive recalls around the world. Several automakers have recalled vehicles with air bags made by the company because they can explode and send shards flying at drivers and passengers. In response to the recalls, Takata on Wednesday apologized to those killed or hurt by its faulty air bags and announced it was reshuffling its executives.