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Report: Unemployment rates down, consumer confidence building

Unemployment rates are down, leading to greater consumer confidence.

Unemployment rates are down, leading to greater consumer confidence.

According to recent government data, the number of first-time unemployment claims dropped recently, expressing signs of optimism for the economy and real estate market.

For the week ending May 7, 434,000 first-time claims were filed, which is 44,000 fewer than the previous week. With more people being hired, and fewer fired, confidence is increasing among U.S. consumers. Furthermore, U.S. payrolls increased for the seventh straight month, according to the Labor Department.

"These numbers are consistent with the consumer continuing to spend and the recovery continuing to gain traction," Conrad DeQuadros, a senior economist at RDQ Economics in New York, told Bloomberg. "The only problem is that we;re digging out of a very deep hole in employment, so the unemployment rate will probably remain elevated."

While the declining unemployment figure is good news for the economy, the real estate market could also benefit from it. With more consumers now employed and the average home price now the lowest it's ever been, according to Clear Capital, more Americans might be interested in purchasing and moving into a new home. Furthermore, with renewed confidence, more consumers could attempt to secure new mortgages to help finance these properties.