Last Week in the News
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The combined construction of new single-family homes and apartments in June rose 14.6% to a seasonally adjusted annual rate of 629,000 units. Single-family starts increased 9.4%.
 
Multifamily starts rose 30.4%. Applications for new building permits, seen as an indicator of future activity, rose 2.5% to an annual rate of 624,000 units.

The National Association of Home Builders/Wells Fargo monthly housing market index rose two points in July to 15. An index reading below 50 indicates negative sentiment about the housing market.

Retail sales rose 0.4% for the week ending July 16, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 4.5%.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending July 15 rose 15.5%. Refinancing applications increased 23.1%. Purchase volume fell 0.1%.

Existing home sales fell 0.8% in June to a seasonally adjusted annual rate of 4.77 million units from a revised 4.81 million units in May. The inventory of unsold homes on the market increased 3.3% to 3.77 million, a 9.5-month supply at the current sales pace, up from a 9.1-month supply in May.

The index of leading economic indicators - designed to forecast economic activity in the next three to six months - rose 0.3% in June, following a 0.8% increase in May.

Initial claims for unemployment benefits rose by 10,000 to 418,000 for the week ending July 16. Continuing claims for the week ending July 9 fell by 50,000 to 3.7 million.

Upcoming on the economic calendar are reports on new home sales on July 26, durable goods orders on July 27 and gross domestic product on July 29.

Provided by:
Judy Haller
Prospect Mortgage
3985 Prince William Co. Pkwy., Suite 104
Woodbridge, VA 22192
Office: (703) 590-7132

The trade deficit increased 15.1% to $50.2 billion in May from a revised $43.6 billion in April. Exports fell 0.5% to $174.9 billion. Imports increased 2.6% to $225.1 billion.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending July 8 fell 5.1%. Refinancing applications decreased 6.2%. Purchase volume fell 2.6%.

The producer price index, which tracks wholesale price inflation, fell 0.4% in June after a 0.2% increase in May. For the year, seasonally adjusted wholesale prices are up 7%. Core prices — excluding food and fuel — rose 0.3% in June.

Retail sales rose 0.1% to $387.8 billion in June after a revised 0.1% decrease in May. On a year-over-year basis, retail sales rose 8.1%.

Total business inventories rose 1% in May to $1.514 trillion, up 11.6% from a year ago. Total business sales decreased 0.1% to $1.184 trillion in May, also up 11.6% from a year ago. The total business inventories/sales ratio in May was 1.28.

Consumer prices fell a seasonally adjusted 0.2% in June, following a 0.2% increase in May. For the year, seasonally adjusted consumer prices are up 3.4%.

Industrial production at the nation's factories, mines and utilities rose 0.2% in June. Compared to a year ago, industrial production is up 3.4%. Capacity utilization remained unchanged at 76.7% in June.

Initial claims for unemployment benefits fell by 22,000 to 405,000 for the week ending July 9. Continuing claims for the week ending July 2 rose by 15,000 to 3.7 million.

Upcoming on the economic calendar are reports on the housing market index on July 18, housing starts on July 19 and existing home sales on July 20.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132

Factory orders rose 0.8% in May to a seasonally adjusted $445.29 billion, following an upwardly revised 0.9% decrease in April. Excluding the volatile transportation sector, orders rose 0.2% in May.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending July 1 fell 5.2%. Refinancing applications decreased 9.2%. Purchase volume rose 4.8%.

The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity fell to 53.3 in June from 54.6 in May. A reading above 50 signals expansion. It was the 18th straight month of expansion in the services sector.

Wholesalers increased their inventories 1.8% to $456.3 billion in May. This followed a 0.8% rise in April. Sales at the wholesale level fell 0.2% in May to $393.7 billion. On a year-over-year basis, sales were 14.5% higher since May 2010.

Retail sales rose 1.5% for the week ending July 2, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 3.5%.

According to the Federal Reserve, consumer credit debt rose in May by $5.1 billion for a total credit level of $2.43 trillion. Revolving debt, which includes credit cards, rose by $3.4 billion. Non-revolving debt, including loans for cars, rose by $1.7 billion.

Initial claims for unemployment benefits fell by 14,000 to 418,000 for the week ending July 2. Continuing claims for the week ending June 25 fell by 43,000 to 3.7 million. The monthly unemployment rate rose to 9.2% in June from 9.1% in May.

Upcoming on the economic calendar are reports on international trade on July 12, retail sales on July 14 and industrial production on July 15.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132

Pending home sales, a forward-looking indicator based on signed contracts, rose 8.2% in May after a revised 11% decrease in April. On a year-over-year basis, pending sales are up 13.4%.

Retail sales rose 2.9% for the week ending June 25, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 3%.

The Standard & Poor's/Case-Shiller 20-city housing price index — on a non-seasonally adjusted basis — rose 0.7% in April after a 0.9% decrease in March. It was the first monthly increase in eight months.

The consumer confidence index fell to a seven-month low of 58.5 in June from an upwardly revised 61.7 in May. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending June 24 fell 2.7%. Refinancing applications decreased 2.6%. Purchase volume fell 3%.

The Institute for Supply Management reported that the monthly composite index of manufacturing activity rose to 55.3 in June after a reading of 53.5 in May. A reading above 50 signals expansion. It was the 23rd straight month of expansion.

Total construction spending fell 0.6% to $757.9 billion in May, following a revised 0.6% decrease in April. Economists had anticipated a decrease of 0.3% in May.

Initial claims for unemployment benefits fell by 1,000 to 428,000 for the week ending June 25. Continuing claims for the week ending June 18 fell by 12,000 to 3.7 million.

Upcoming on the economic calendar are reports on factory orders on July 5, jobless claims on July 7 and wholesale trade on July 8.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132