Economy Week Ahead: Home Prices, Unemployment Claims

Wednesday

Economists expect a report from the National Association of Realtors to show U.S. pending home sales slowed to a seasonally adjusted 0.8% increase in November from October. That would be sharply lower than the 7.5% increase the prior month.

Pending home sales are a forward looking measure of properties going under contract. Sales are usually finalized within one or two months of signing.

Despite the estimated slowdown, the existing-home market is on pace in 2021 for its strongest sales in 15 years due to factors such as rising stock market values, low interest rates and a strong labor market.

Thursday

U.S. jobless claims, reported by the Labor Department, have remained near decades lows in recent weeks. That reflects a tight labor market where employers are holding on to their workers, despite concerns around the Omicron variant of Covid-19.

Both initial claims and the four-week moving average, which smooths weekly volatility, fell to their lowest points in more than half a century this month. Economists estimate that first-time applications for unemployment benefits, a proxy for layoffs, will stay near that level in the week ended Dec. 25.