Real GDP growth for the third quarter was revised up again, the Bureau of Economic Analysis reported Thursday, reaching a 3.1 percent annualized growth rate. It was only the third time in the last five years the quarterly growth rate topped 3.0 percent. Economists had forecast a 2.8 percent growth.

First time claims for unemployment insurance increased 17,000 to 361,000 for the week ended December 15, the Labor Department reported Thursday. Economists expected claims to increase to 359,000. The previous week’s report was revised upward to 344,000 from the originally reported 343,000, an unexpected sharp drop of 27,000 initial filings.

Despite a continuing surge in builder confidence, housing starts dropped 3.0 percent in November to 861,000 the Census Bureau and HUD reported jointly Wednesday. At the same time start activity for both September and October was revised lower. Applications for permits, according to the report, rose 3.6 percent to 899,000--the highest level since July 2008 as permit activity for October was revised slightly upward.

Builder confidence continued to improve in December as the Housing Market Index (HMI) rose two points to 47, its highest level since April 2006, the National Association of Home Builders reported Tuesday. It was the eighth straight monthly increase in the index and matched economist expectations.

Despite recent improvements in the unemployment rate and housing, the Federal Open Market Committee (FOMC) Wednesday voted to continue its program of purchasing $40 million a month of mortgage backed securities and to maintain the target Fed Funds rate at 0 to 0.25 percent. The FOMC vote was 11-1 with only Richmond Fed President Jeffery M. Lacker dissenting.

Superstorm Sandy blew a hole not in the nation's labor market, but in economists' crystal balls as the economy added 146,000 jobs and the unemployment rate fell to 7.7 percent--the lowest level since December 2008, Bureau of Labor Statistics (BLS)reported Friday. Economists had forecast payroll growth of 93,000, down from 171,000 as originally reported for October, and an increase in the unemployment rate from 7.9 percent to 8.0 percent. While the drop in the unemployment rate was a positive sign, it was driven largely by a drop in the labor force.

Fueled by a $370 billion jump in the value of household real estate, household net worth grew $1.7 trillion in the third quarter to $64.8 trillion, the Federal Reserve reported Thursday in its quarterly Flow of Funds report. And, while the value of owner-occupied household real estate increased, total residential mortgage debt fell $85.8 billion. As a result, owners' equity increased almost $390 billion. Homeowners' equity as a percentage of the value of the real estate rose to 44.8 percent, the highest level since 2007, according to the report.

Continuing to show the recovery from superstorm Sandy, first-time claims for unemployment insurance fell 25,000 to 370,000 for the week ending December 1, the Labor Department reported Thursday. Economists expected 380,000 initial claims filings. The previous week's report was revised upward to 395,000 from the originally reported 393,000.

Consumer spending fell $20.2 billion in October as personal income remained relatively flat, the Bureau of Economic Analysis (BEA) reported Friday. The October report marked the first time since June in which income growth--however modest--exceeded spending. Still, income growth was the weakest it has been since last November, when it fell $31.1 billion in one month--a decline that was completely reversed one month later.

The number of homebuyers committing to sales contracts soared last month. The National Association of Realtors (NAR) says its Pending Home Sales Index for October skyrocketed to hit its highest mark in more than five years. The index jumped 5.2 percent from September to October to a reading of 104.8, its highest point since March 2007. Economists had expected a smaller increase to 100.5. Compared to October 2011, the index was up 13.2 percent, making it the 18th straight month of year-over-year gains.