Last Week in the News

New home sales rose 26.9% in March to a seasonally adjusted annual rate of 411,000 units from an upwardly revised rate of 324,000 units in February. Economists had expected a pace of 330,000 units. It was the biggest monthly increase in 47 years.

The index of leading economic indicators — designed to forecast economic activity in the next three to six months — rose 1.4% in March after a revised 0.4% gain in February. It was the 12th straight monthly increase and the fastest pace of growth in 10 months.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending April 16 rose 13.6%. Purchase volume increased 10.1%. Refinancing applications jumped 15.8%.

The producer price index, which tracks wholesale price inflation, rose 0.7% in March, following a 0.6% decrease in February. Economists had expected a 0.4% rise. The increase was largely due to a sharp rise in vegetable prices after a cold snap damaged crops in Florida.

Existing home sales rose 6.8% in March to a seasonally adjusted annual rate of 5.35 million units from 5.01 million units in February. The inventory of unsold homes on the market rose 1.5% to 3.6 million, an 8-month supply at the current sales pace, down from an 8.5-month supply in February.

Orders for durable goods — items expected to last three or more years — fell 1.3% in March after a revised 1.1% increase in February. Excluding volatile transportation-related goods, orders posted a monthly increase of 2.8%.

Initial claims for unemployment benefits fell by 24,000 to 456,000 in the week ending April 17. Continuing claims for the week ending April 10 fell by 40,000 to 4.6 million.

Upcoming on the economic calendar are reports on the housing price index and consumer confidence on April 27, and gross domestic product on April 30.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pky., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132

Last Week in the News

The National Association of Home Builders/Wells Fargo housing market index rose four points in April to 19. Economists had anticipated a reading of 16. An index reading below 50 indicates negative sentiment about the housing market.

The combined construction of new single-family homes and apartments in March rose 1.6% to a seasonally adjusted annual rate of 626,000 units. Applications for new building permits, seen as an indicator of future activity, jumped 7.5% to an annual rate of 685,000 units.

Consumer prices rose a seasonally adjusted 0.1% in March, following a flat reading in February. On a year-over-year basis, consumer prices are up 2.3%.

The trade deficit increased 7.4% to $39.7 billion in February from a revised $36.95 billion gap in January. Economists had expected the trade deficit to widen to $38.5 billion. Exports rose 0.2% to $143.2 billion. Imports increased 1.7% to $182.9 billion.

Retail sales rose 1.6% in March, following a revised 0.5% increase in February. Economists had anticipated retail sales to rise 1.2% in March. On a year-over-year basis, retail sales increased 7.6%.

Total business inventories rose 0.5% in February, following a revised 0.2% increase in January. The February increase was the largest since July 2008.

Industrial production at the nation’s factories, mines and utilities increased 0.1% in March, following a 0.3% gain in February. It was the ninth consecutive monthly increase.

Initial claims for unemployment benefits unexpectedly rose by 24,000 to 484,000 in the week ending April 10. Continuing claims for the week ending April 3 rose by 73,000 to 4.639 million.

Upcoming on the economic calendar are reports on the index of leading economic indicators on April 19, existing home sales on April 22 and new home sales on April 23.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pky., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132

The Institute for Supply Management reported the monthly index of non-manufacturing activity rose to 55.4 in March from 53 in February. A reading above 50 signals expansion. Economists had anticipated a reading of 53.3. The reading was the highest since May 2006.

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 8.2% in February after a revised 7.8% decrease in January. The February reading was the largest gain since October 2001.

According to the Federal Reserve, consumer credit debt fell in February by $11.5 billion, an annual rate of 5.6%. Economists had forecast that consumer debt would rise by $500 million. Consumer credit rose in January by $10.6 billion, ending a record 11 consecutive months of decline.

Sales at U.S. retail chains rose 9.1% in March. It was the largest monthly jump since record keeping began in 2000. Economists had anticipated a 6.3% increase.

Initial claims for unemployment benefits unexpectedly rose by 18,000 to 460,000 in the week ending April 3. Continuing claims for the week ending March 27 fell by 131,000 to 4.55 million.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending April 2 fell 11%. Purchase volume increased 0.2%. Refinancing applications fell 16.9%.

The Commerce Department said wholesalers increased their inventories by 0.6% in February following a revised 0.1% rise in January. Sales at the wholesale level rose 0.8% in February, marking the 11th straight monthly gain.

Upcoming on the economic calendar are reports on retail sales on April 14, the housing market index on April 15 and housing starts on April 16.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pky., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132

Last Week in the News

The Commerce Department reported that consumer spending rose $34.7 billion or 0.3% in February, matching what economists had anticipated. Personal income increased $1.2 billion or less than 0.1%.

The Standard & Poor’s/Case-Shiller 20-city housing price index rose a seasonally adjusted 0.3% in January. It was the eighth consecutive monthly gain and follows a 0.3% increase in December.

The consumer confidence index rose to 52.5 in March from a slightly revised 46.4 in February. Economists had anticipated a reading of 50. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.

Factory orders rose 0.6% in February, slightly above the 0.5% increase economists had anticipated. It was the sixth straight gain and follows an upwardly revised 2.5% increase in January.

The Institute for Supply Management reported that the monthly index of manufacturing activity was 59.6 in March after reaching 56.5 in February. It was the eighth straight month of expansion and the best reading since July 2004. A reading above 50 signals expansion.

Total construction spending fell 1.3% to $846.23 billion in February. It was the lowest spending level since November 2002 and followed a 1.4% drop in January.

The unemployment rate held at 9.7% in March. However, employers added 162,000 jobs last month, the most since March 2007. For the week ending March 27, initial claims for unemployment benefits fell by 6,000 to 439,000. Continuing claims for the week ending March 20 fell by 6,000 to 4.6 million.

Upcoming on the economic calendar are reports on pending home sales on April 5, consumer credit on April 7 and wholesale trade on April 9.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pky., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132