new home sales down, unemployment up

•On Sept. 24, the Commerce Department reported that sales of new homes had dropped by a seasonally adjusted 11.5% in August from July's already low levels. Sales of 460,000 for the month were down from the 520,000 new homes sold in July and the 500,000 sold in June. Sales for August 2008 were down 34.5% from sales in August 2007 and reached their lowest monthly total since 1991. The inventory of unsold new homes fell for a 16th straight month but still amounted to a 10.9-month supply at recent rates of sale.

•On the same day, the Labor Department reported that new unemployment claims had risen to a seasonally adjusted 493,000 in the week ending Sept. 20. That was up from 461,000 the week before. The total number of new and continuing claims climbed to 3.5 million, about 1 million more than at the same time in 2007. Recessions typically see new weekly claims rise to 500,000. The economy isn't quite there yet, but it's getting very close.