More Americans filed for jobless claims last week and while the labor market remains broadly healthy, there are growing signs that it may finally be cooling.

Applications for unemployment benefits rose by 13,000 to 231,000 for the week ending Nov. 11, the Labor Department reported Thursday. That’s the most in three months.

Overall, 1.87 million people were collecting unemployment benefits the week that ended Nov. 4, about 32,000 more than the previous week and the most in almost two years. It was the sixth straight week that continuing claims rose.

“Job growth remains strong, and businesses have yet to start reducing their workforce in a significant way,” said Rubeela Farooqi, chief U.S. economist for High Frequency Economics. “But the continuing claims data are pointing to some softening in labor demand, in line with what the Fed wants to see.”

Mortgage rates retreat from high

The average rate on 30-year fixed mortgages retreated to 7.66% this week, down from 7.69% the previous week, according to Bankrate’s weekly national survey of large lenders.

The slight reprieve could signal a prolonged drop in mortgage rates, says Lawrence Yun, chief economist at the National Association of Realtors (NAR). The average rate on 30-year home loans recently topped 8%, but that’s changing because of a number of factors, including a slowing job market and signs that the Federal Reserve’s ongoing war on inflation is working.

Meanwhile, 10-year Treasury yields, an informal benchmark for 30-year mortgage rates, have dropped from 5% to 4.5% in recent days.

“The pivot may have already occurred this week,” Yun said Wednesday during the annual Realtors conference in Anaheim, California. “The bond market has already said, ‘We’re pivoting.’”