Weekly Jobless Claims Fall
Unemployment claims were lower than expected last week, with 233,000 people filing for the first time, which is fewer than predicted. This decrease was a positive sign for the economy, although continuing claims (people already receiving unemployment benefits) rose slightly, reaching the highest level since late 2021. The job market has been showing signs of weakening, with a recent report indicating slow job growth and a higher unemployment rate, raising fears of a possible recession. These concerns caused significant stock market fluctuations, and many expect the Federal Reserve to start cutting interest rates soon to support the economy.
Mortgage Rates Drop
Mortgage interest rates dropped to the lowest level since May 2023, leading to a 6.9% increase in total mortgage applications. The average rate for a 30-year fixed-rate mortgage fell to 6.55%, prompting a significant rise in refinance applications, although most borrowers still have lower rates. Home purchase applications saw only a slight 1% increase, as potential buyers may be waiting for even lower rates. Mortgage rates fluctuated this week due to varying economic data, affecting the overall market.
Fast Food Value Proposition
Restaurant CEOs are heavily focusing on "value" to explain why their sales have dropped and how they plan to attract more customers. Rising food prices have made dining out less appealing, so many chains, including McDonald’s, are using discounts and promotions like $5 meal deals to lure back budget-conscious consumers. Some restaurants, like Chipotle, are also emphasizing generous portions to maintain their value perception.
