Applications for unemployment benefits decreased by 3,000 to 420,000 for the week ending Dec. 11, the lowest in three weeks, according to figures from the U.S. Department of Labor.

This came after a week when the claims rose by 22,000. Iowa was one of only two states to decrease claims by more than 1,000 in the week ending Dec. 4.

“The recent signs have been pretty consistent in that they’ve shown some modest improvement” in the labor market, said Ryan Wang, economist at HSBC Securities USA Inc. in New York, in an interview with Bloomberg.

November numbers show that housing starts rose for the first time in three months, according to figures from the Commerce Department. Housing starts reached a 555,000 annual rate, up 3.9 percent from October.

Still, “housing remains stuck in the mud,” said Aaron Smith, senior economist at Moody’s Analytics Inc. in West Chester, Pa., in an interview with Bloomberg. “Builders are in a wait-and-see mode. Foreclosures are still problematic, and the recent backup in mortgage rates poses a significant threat.”