Jobless Claims

Weekly jobless claims represent the number of people filing for unemployment benefits for the first time. It’s a key measure of labor market health and is reported every Thursday by the U.S. Department of Labor.

Higher jobless claims can signal economic weakness, which often leads to lower consumer confidence and tighter lending conditions—both of which can cool housing demand. Conversely, lower claims suggest job stability and income security, supporting homebuyer activity.

Bond markets, which directly influence mortgage rates, react to labor data. A strong job market can push rates higher as investors anticipate Federal Reserve tightening, while weaker labor numbers may lead to lower rates.

Short-term spikes may reflect temporary events (like layoffs in specific sectors), but sustained increases often signal broader economic stress. On the other hand, consistent declines usually indicate improving job market conditions.

ICSA stands for Initial Claims, Seasonally Adjusted. It represents the number of first-time filings for unemployment benefits, with seasonal patterns removed to allow for clearer week-to-week comparison. This adjustment helps economists and analysts identify underlying labor market trends without distortion from predictable seasonal fluctuations like holidays or school schedules.