Times Leader

First Posted:

Weekly unemployment claims fall

The number of Americans seeking unemployment benefits dipped 2,000 last week to a seasonally adjusted 339,000, evidence that layoffs are low and hiring will likely remain steady.

The Labor Department said Thursday that the less volatile four-week average rose 8,500 to 357,250.

The average was driven up in recent weeks by spikes that reflected seasonal volatility around the Thanksgiving and Christmas holidays. The government struggles to account for seasonal hiring by retailers and other businesses and for temporary layoffs of school employees during the holidays.

Applications are a proxy for layoffs. They appear to have stabilized near pre-recession levels and are at a level consistent with solid hiring.

NEW YORK

Macy’s, Martha Stewart settle dispute

Macy’s and Martha Stewart Living Omnimedia say they have settled a breach-of-contract lawsuit involving J.C. Penney.

But Macy’s said the settlement does not impact its lawsuit against J.C. Penney Co., which is still ongoing.

Macy’s Inc. and Martha Stewart Living Omnimedia Inc. said Thursday that their settlement terms are confidential and not material to their businesses. Both companies said that they look forward to “a continued, successful partnership together.”

Macy’s has had an exclusive merchandising contract with Martha Stewart since 2006, including items like bedding and bath products.

Average mortgage rate at 4.53 pct.

Average U.S. rates for fixed mortgages edged higher this week for the third straight week but remained low by historical standards.

Mortgage buyer Freddie Mac said Thursday that the average for the 30-year loan rose to 4.53 percent from 4.48 percent last week. The average for the 15-year loan increased to 3.55 percent from 3.52 percent.

Mortgage rates peaked in August at 4.6 percent amid expectations the Federal Reserve would reduce its $85 billion a month in bond purchases. The purchases push mortgage and other long-term rates lower. Last month the Fed deemed the economy strong enough for it to reduce the monthly purchases by $10 billion.

Mortgage rates are sharply higher than they were a year ago when the 30-year fixed rate was 3.35 percent and the 15-year was 2.65 percent. That’s contributed to a decline in home sales over the past three months.

Still, the average for the 30-year loan has been below 5 percent for nearly three years, a trend that has made home-buying more affordable.