New layoffs hit six-year high

The nation’s jobs market sent a fresh cry of distress as the number of newly laid off people hit the highest level in more than six years, a Labor Department report showed Thursday.

The faltering economy and tight credit have forced companies to cut back. New applications filed for unemployment benefits rose last week by a seasonally adjusted 7,000 to 455,000, the department said in its weekly report. That was the most since late March 2002, when the job market was struggling to get back on its feet after the 2001 recession.

New York

Reports predict low back-to-school sales

The outlook for the back-to-school shopping season seemed grim Thursday, as retailers’ July sales reports showed an increasing shift toward buying necessities like food and household supplies at discounters and away from discretionary spending on clothing.

With the benefits of the government stimulus checks fading and jobless claims at a 6-year high, the big worry is how much shoppers will retrench.

Wal-Mart Stores Inc., the world’s largest retailer, and Costco Wholesale Corp. posted solid gains, while many mall-based apparel stores suffered deeper declines.

Washington

30-year-mortgage rates hold steady

Rates on 30-year mortgages didn’t budge this week, while rates on other home loans were a mixed bag.

Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 6.52 percent for the week ending Aug. 7. That was the same as last week’s rate, which marked the second-highest of the year. The highest – 6.63 percent – came the week ending July 24.

Meanwhile, rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, rose to 6.10 percent this week, up from 6.07 percent last week.