|
|
|
|
|
|
Monday, June 29, 2009
Economic UpdatesLast Week in the News
-------------------------------------------------------------------------------- The National Association of Realtors
said existing home sales rose 2.4% in May to a seasonally adjusted annual rate of 4.77 million units from a revised level
of 4.66 million units in April. May’s increase was the first back-to-back monthly gain since September 2005. According to the ICSC-Goldman Sachs
index, retail sales were unchanged in the week ending June 20. On a year-over-year basis, retailers saw sales decline by 0.9%. The Mortgage Bankers Association said
its seasonally adjusted index of mortgage applications for the week ending June 19 increased 6.6% to 548.2 from 514.4 the
previous week. Purchase volume rose 7.3% to 280.3, the highest level since the first week of April. Refinancing applications
increased 5.9% to 2,116.3.
Orders for
durable goods, items expected to last three or more years, rose 1.8% in May after a revised 1.8% increase in April. This was
the third increase in the last four months after having recorded six straight declines. Economists had anticipated orders
for durable goods in May would fall 0.5%. Among the areas of strong growth were orders for heavy machinery, up 7.7%, and demand
for computers, up 9.4%.
New home
sales fell 0.6% in May to a seasonally adjusted annual rate of 342,000 from a downwardly revised rate of 344,000 in April.
Economists had expected a sales pace of 360,000 units. Initial claims for unemployment benefits rose by 15,000 to 627,000 in the week ending June 20 from
a revised figure of 612,000 in the previous week. The number of people continuing to claim jobless benefits in the week ending
June 13 rose 29,000 to 6.738 million.
Upcoming
on the economic calendar are reports on consumer confidence on June 30, construction spending and pending home sales on July
1, and factory orders on July 2.
Provided by: Judy Haller Senior
Loan Officer
Prospect Mortgage
3985 Prince William Co. Pky., Suite 104
Woodbridge, VA 22192
Office:
(703) 590-7132
12:16 pm edt
Tuesday, June 23, 2009
Economic UpdateLast Week in the News
--------------------------------------------------------------------------------
Construction of new
homes and apartments jumped 17.2% in May to a seasonally adjusted annual rate of 532,000 units. The increase was led by a
62% rise in the construction of multifamily units. Construction of single-family homes rose 7.5% to an annual rate of 401,000,
and building permits, seen as a good indicator of future activity, were up 4% to an annual rate of 518,000 in May.
The National Association of Home Builders/Wells Fargo
housing market index fell one point in June to 15. An index reading below 50 indicates negative sentiment about the housing
market.
The Labor Department reported the producer
price index, which tracks wholesale prices, rose 0.2% in May, following a 0.3% increase in April. For the year, wholesale
prices have dropped 5%, the biggest 12-month decline since 1949.
The Federal Reserve reported
that industrial production at the nation’s factories, mines and utilities fell 1.1% in May, following a revised 0.7%
decrease in April. Economists had expected a decline of 0.9% in May.
The Labor Department reported that consumer inflation rose a seasonally adjusted 0.1% in May. For the year,
the consumer price index is down 1.3%, the biggest decline since 1950.
The Conference Board reported
that its index of leading economic indicators rose 1.2% in May, following a revised 1.1% gain in April. It was the best back-to-back
performance since November-December 2001. The index is designed to forecast economic activity in the next three to six months.
Initial claims for unemployment benefits rose by 3,000 to 608,000 in the week ending June 13 from a revised figure
of 605,000 in the previous week. The number of people continuing to claim jobless benefits in the week ending May 30 fell
148,000 to 6.69 million. It was the largest drop since November 2001.
Upcoming on the economic calendar
are reports on existing home sales on June 23, durable goods orders and new home sales on June 24, and consumer spending on
June 26.
Provided by: Judy Haller Senior Loan Officer
Prospect Mortgage
3985 Prince William Co. Pky., Suite 104
Woodbridge,
VA 22192
Office: (703) 590-7132
10:34 am edt
Monday, June 15, 2009
Economic UpdatesLast Week in the News
--------------------------------------------------------------------------------
On Tuesday, June 9, the Commerce Department said wholesalers reduced their inventories by 1.4%
in April following a 2.4% drop in March. Economists had forecast a 1.1% decrease in April. It was the eighth straight monthly
decline. Sales at the wholesale level fell 0.4% in April after a 2.4% decline in March.
According to the ICSC-Goldman Sachs index, store sales rose 0.2% in the week ending June 6 compared to the
previous week.
The Commerce Department
reported Wednesday that the trade deficit rose 2.2% to $29.2 billion in April, from a revised $28.5 billion in March. The
deficit is running at an annual rate of $361.1 billion compared to $695.9 billion in 2008.
Retail sales rose 0.5% in May following a revised 0.2% decline in April. The gains were largely fueled
by auto purchases and the rising cost of gasoline. The May report was the largest increase since retail sales rose 1.7% in
January following six straight monthly declines.
Initial
claims for unemployment benefits fell by 24,000 to 601,000 in the week ending June 6 from a revised figure of 625,000 in the
previous week. The number of people continuing to claim jobless benefits in the week ending May 30 rose 59,000 to 6.82 million.
Also, the previous estimate for the week ending May 23 was revised from a drop of 15,000 to an increase of 6,000.
The Commerce Department reported that total business inventory decreased 1.1% in April following
a revised 1.3% drop in March. It was the eighth straight monthly decline as retailers, manufacturers and wholesalers sought
to cut inventory. Sales fell 0.3% in April, pulling the stock-to-sales ratio down to 1.43.
Upcoming
on the economic calendar are reports on the housing market index on June 15, housing starts and industrial
production on June 16, and consumer inflation on June 17.
Provided by: Judy Haller Senior
Loan Officer
Prospect Mortgage
3985 Prince William Co. Pky., Suite 104
Woodbridge, VA 22192
Office:
(703) 590-7132
12:00 pm edt
Monday, June 8, 2009
Economic Updates Last Week in the News
--------------------------------------------------------------------------------
On
Monday, June 1, the Commerce Department reported total construction spending unexpectedly rose 0.8% in April. Economists had
expected a 1.2% decline. It was the biggest gain since August 2008 and marked the second straight month that construction
spending has risen after a 0.4% increase in March.
The Institute for Supply Management reported the monthly index of manufacturing activity rose in May to 42.8 from
40.1 in April. Though any reading below 50 signals contraction, it was the fifth consecutive monthly increase from a record
low of 32.9 in December. Most importantly, the index of new orders rose to 51.1. This is the first expansion since November
2007, one month before the recession began. The National Association of Realtors reported that its pending home sales
index, a forward-looking indicator based on signed contracts, rose 6.7% to 90.3 in April from 84.6 in March. It was the biggest
monthly jump since October 2001 and the third consecutive monthly increase after the index hit a record low in January. The
reading is 3.2% above the April 2008 level.
The Commerce Department reported factory orders
rose 0.7% in April, after a revised 0.9% drop in March. The report reflected increased demand for automobiles, electrical
equipment and construction machinery. The Institute for Supply Management reported the monthly index of non-manufacturing
activity rose in May to 44 from 43.7 in April. Economists had expected a reading of 42. Figures below 50 indicate contraction.
Initial claims for unemployment benefits fell
by 4,000 to 621,000 in the week ending May 30 from a revised figure of 625,000 in the previous week. The number of people
continuing to claim jobless benefits in the week ending May 23 fell to 6.74 million. It was the first decrease in almost five
months of uninterrupted weekly gains.
Upcoming on the economic
calendar are reports on wholesale trade on June 9, retail sales on June 11 and consumer sentiment on June 12.
Provided by: Judy Haller Senior Loan Officer
Prospect Mortgage
3985 Prince William Co. Pky.,
Suite 104
Woodbridge, VA 22192
Office: (703) 590-7132
11:34 am edt
Wednesday, June 3, 2009
Home Buyers and Builders Market Changes AheadThe real estate industry has recently reported
that the size of the average American home has shrunk by 11% in the past year. To me this is important
and welcomed news. I have been steaming over young couples with no children turning their noses up to houses
that are bigger than the home where my parents raised myself and my 3 siblings. In 1950 the National Association of Home Builders reported the average home
size was less than 1,000 square feet. By 1970 it had gone up to about 1500 square feet and by 2004 it was
over 2400 square feet. And, get this, during this entire time the size of the family was shrinking and
self storage units were booming. So there were fewer people living in bigger homes who still had so much
junk they had to rent additional space. Not
only are the homes big but the designs are highly inefficient. The average homes now days have huge living,
family and formal dining rooms. The family room is where everyone spends their time. The
formal dining room and living room are used just a couple times a year. And, people don’t realize
the additional costs of those pop-outs, dormers, bay windows and additional gables that add little if any additional space.
They’re also more prone to energy loss and failure. The cheapest square footage you can obtain
is by getting your homes footprint as close to square as possible. Every additional corner ads significant
cost to a home, increases construction waist and reduces energy efficiency. I recommend reading “The
Not So Big House,” and “Good House Cheap House,” by Kira Obolensky. Industry professionals and even home buyers should take notice.
The homes are shrinking due to cost constraints. That means that you may not want to automatically
put in that Jacuzzi tub and granite countertop. Formica is making a comeback. We are
really going to have to think about where to put the value in our homes. The desire for adding the bling
factor will have to be balanced with cost constraints and efficient designs, once again.
Monday, June 1, 2009
5 Most Dangerous Hazards in a Home
1:07 pm edt
Economic UpdateLast Week in the News
On Tuesday, May 26, the Conference Board reported that its consumer confidence index rose
to 54.9 in May from an upwardly revised 40.8 in April. It was the biggest increase in six years. Economists had expected an
increase to 42.3. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer
confidence.
The Standard & Poor’s / Case-Shiller 20-city housing price index dropped
18.7% from March 2008 to March 2009. It was the second straight month the index didn't post record drops, indicating that
the slump in home values might be easing.
The National Association of Realtors said existing home sales rose
2.9% in April to a seasonally adjusted annual rate of 4.68 million from 4.55 million in March. Economists had expected an
annualized rate of 4.66 million homes.
Orders for durable goods, items expected to last three or more years,
rose 1.9% in April after a revised lower 2.1% drop in March. This was the second increase in the last three months after having
recorded six straight declines. Economists had anticipated orders for durable goods to rise only 0.5%.
Initial claims for unemployment benefits fell by 13,000 to 623,000 in the week ending
May 23 from a revised figure of 636,000 in the previous week. The number of people continuing to claim jobless benefits in
the week ending May 16 rose to 6.78 million, a record-high figure for the 17th straight week.
New home sales rose 0.3% in April to a seasonally adjusted annual rate of 352,000 from a downwardly revised rate of 351,000
in March. Economists had expected a sales pace of 360,000 units.
Upcoming on the economic calendar
are reports on construction spending on June 1, pending home sales on June 2 and factory orders on June 3. Provided by: Judy Haller Senior Loan Officer
Prospect Mortgage
3985
Prince William Co. Pky., Suite 104
Woodbridge, VA 22192
Office: (703) 590-7132
1:02 pm edt
|
|
|
|
|
|
 |
 |
|
 |
|
|
|
