For the first time in a while, new reports released regarding the economy show almost all good news. According to data that came out today, claims for unemployment benefits dropped to the lowest level in seven months in October. In that same month, new housing construction permits jumped to the highest level since March of 2010.

Housing starts actually decreased in October by 0.3 percent to a 628,000 annual rate (September’s pace was 630,000), but that decrease was less than forecasted. It was widely expected that the annual rate could slip all the way to 610,000 in October.

However, building permits, a proxy for future construction, jumped 10.9 percent to an annual pace of 653,000 in October, significantly more than expected. There was a 5.1 percent increase in permit applications for single-family homes, while applications for multifamily domiciles saw an increase of 24.4 percent.

Supplementing the good news on the housing front is equally good news regarding jobs. In October, claims for state unemployment benefits fell 5,000 to a monthly total of 388,000. That pushes the four-week average (often measured to minimize the effect of seasonal factors) below 400,000 for the first time since April.

All in all, this data seems to point toward an economy that is slowly stabilizing and perhaps in the early stages of recovery. The government will release an employment count on December 2nd, which is expected to show increased employment growth and a total rise in payrolls. Meanwhile the housing data indicates a rising confidence in residential real estate, as well as activity that should stimulate the hard-hit construction industry.