US unemployment claims hit nine-month low amid strong labor market

The Labor Department reported a remarkable drop in new unemployment benefit claims, reaching their lowest point in nine months, showcasing that the job market is doing well.

Last week, only 198,000 people filed for unemployment benefits, a drop of 13,000 from the previous week and the lowest since January.

While claims have been gradually decreasing since the summer, the number of people continuing to need help went up to 1.734 million.

The positive trend in the economy has reinforced expectations that the Federal Reserve may maintain higher interest rates. 

The housing markets are facing challenges due to surging mortgage rates.