According to a recent report from the Labor Department, there is a growth in economy as initial jobless claims are reduced by 23,000. Economists said that this drop in unemployment claims is a clear picture that the U.S. economy is heading to a better direction. Meanwhile, the National Association of Realtors said that its Pending Home Sales Index gained 0.3 percent to 99.5, basing on the contracts signed last month. Economists predicted that in a month or two, this will be followed by a 2.1 percent growth.
Lower Jobless Claims
Last Saturday, the job claims fell from 369,000 to 392,000, according to a report from the Labor Department. With this dramatic change though, there were some allegations that the Obama administration was cooking the figures before the presidential election. However, officials from the Labor Department, verified that the information was correct and that there was not any sorts of manipulation.
Economists have also predicted 370,000 initial claims, which is close to the actual report. Economists have also predicted that this job growth will remain steady until the fourth quarter of the year, with a monthly job growth of 125,000.
Chris Rupkey, a financial economist for the Bank of Tokyo-Mitsubishi in New York, also said that his view of the current economic condition is definitely not worsening.
Higher Home Sales
A report from the National Association of Realtors (NAR) also shows that contracts to buy previously owned homes rose, with an improving tone in the housing market.
Lawrence Yun, NAR chief economist, said that the housing market is continuously and steadily healing since its decline in 2006. This economic growth is coupled by modest job gains, low mortgage rates and increase job security.
According to NAR, pending home sales rose to 14.5 percent in 12 months, to September.
Rise in Loans Needs Despite of “Better” Economy
However, despite the signs that the economy is gearing toward a good direction, the need for loans has been steadily increasing. In fact, the number of online lenders has increased as well.
Economists said that this is to be expected, as millions of Americans have bad credit score and one of the best ways for them to secure money fast while still recovering on their finances is to secure bad credit loans, which are offered by thousands of lenders online.
Economists also added that Americans are still expected to be patronizing bad credit loans lenders not only because of poor credit rating, but also because of convenience. Even if the U.S. economy recovers to its full potential, economists believe that these lenders will continuously thrive, offering enticing types of loan packages.