Jobless claim decrease last week; housing starts jump

Jobless claims fell last week while housing starts picked up, indicating that soon more Americans may be able to hire a moving company and relocate into a new home.

The Labor Department reported that claims for unemployment benefits decreased to 420,000 in the week ending Dec. 11., about 3,000 fewer claims then the week before. New unemployment claims also fell to their lowest rates since summer 2008, according to the statistics.

Housing starts rose 3.9 percent in November due to an increase in the new construction of single family homes, reported the Commerce Department. While it is a positive step, housing analysts told the Wall Street Journal more homes under foreclosure are expected to appear on the market next year.

The Midwest saw the biggest boom in housing starts, gaining almost 16 percent. In the South and the West they rose 2 percent, but fell by 2.5 percent in the Northeast.

Some believe next year may see more improvements in the housing market. Freddie Mac chief economist Frank Nothaft predicts that job creation will accelerate in the second half of 2011, which should instigate the recovery of the nation's housing and mortgage markets.

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