Amidst a struggling US economy, where the number of unemployment claims is rising to a whopping 455,000 applications and retailers are uncovering disappointing sales earnings, it looks like the light is finally shining down on the housing market.
The housing sector took a higher than expected return from the 5.3% rise of the pending home sales index, brining it up to 89%, the highest number since late October. Senior Global Economist Pierre Ellis said that this is telling us that sales have stabilized.
The jobless rate hit 5.7% in July, with new unemployment claims continuing to trickle in. The labor department also added that a new federal program to extend benefits was partly to blame for the elevated level, which surpassed the 400,000 mark. Walmart, a consumer goods retailer, had drooping July sales which raised concern about US consumer spending. They company said that its US sales only rose by three percent.