The number of Americans who bought second-hand homes fell in September. Home sales are on pace to match last year's dismal figures - the worst in 13 years.
The National Association of Realtors says home sales fell 3% last month to a seasonally adjusted annual rate of 4.91 million homes. That is below the 6 million that economists say is consistent with a healthy housing market.
The US housing market has been hobbled by repossessions, weak demand and falling home prices. Last year 4.91 million previously occupied homes were sold, the lowest level since 1997.
Homes at risk of repossession fell to 30% of sales, down from 31% in August. Many of the sales went to investors, who are buying homes under $100,000.
First-time homebuyers, critical to a housing recovery, were unchanged at 32% of all sales.
US weekly jobless claims fall
New US unemployment insurance claims fell 1.5% last week from the previous week, the Labor Department said Thursday, amid a depressed job market and sluggish economy.
Initial jobless claims in the week ending October 15 fell to 403,000, down by 6,000 from the previous week's upwardly revised reading of 409,000, the department reported.
The latest weekly claims figure confirmed a slight downward trend seen since mid-September. The four-week moving average, which smooths out week-to-week volatility, also fell to 403,000, its lowest level since mid-April.
Despite the positive jobless claims number, the high unemployment rate, stuck at 9.1% in September, is expected to increase in the coming months due to the weakness in hiring. About 14 million people in the country are without jobs, according to official data.
Fed saw anaemic US growth last month
The US economy plodded on with "modest" growth in September, the Federal Reserve reported last night, describing restrained hiring and a still-weak housing market.
"Reports from the 12 Federal Reserve districts indicate that overall economic activity continued to expand in September, although many districts described the pace of growth as 'modest' or 'slight,'" the Fed said in its latest Beige book.
"Many districts noted restraint in hiring and capital spending plans," while "contacts generally noted weaker or less certain outlooks for business conditions. Respondents indicated that labour market conditions were little changed, on balance, in September,'' the report said.
"All 12 districts reported that real estate and construction activity was little changed on balance from the prior report. Residential construction remained at low levels, particularly for single-family homes,'' it added.
But in one glimmer of hope, the Fed received reports that suggested "consumer spending was up slightly in most districts."
