The National Association of Home Builders/Wells Fargo housing market index fell five points in June to 17. Economists had anticipated a reading of 21. The five-point drop was the largest since November 2008. An index reading below 50 indicates negative sentiment about the housing market.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending June 11 increased 17.7%. Refinancing applications jumped 21.1% to the highest level in a year. Purchase volume rose 7.3%, the first increase in six weeks.

The combined construction of new single-family homes and apartments in May fell 10% to a seasonally adjusted annual rate of 593,000 units. Applications for new building permits, seen as an indicator of future activity, fell 5.9% to an annual rate of 574,000 units.

The producer price index, which tracks wholesale price inflation, fell 0.3% in May, following a 0.1% decrease in April. Core prices — excluding food and fuel — rose 0.2% for a second month. For the year, wholesale prices are up 5.1%.

Industrial production at the nation's factories, mines and utilities increased 1.2% in May, following a 0.7% gain in April. The overall factory-operating rate rose to 74.7% of capacity in May, the highest reading since October 2008.

Consumer prices fell a seasonally adjusted 0.2% in May, following a 0.1% increase in April. It was the biggest decline since December 2008.

Initial claims for unemployment benefits rose by 12,000 to 472,000 for the week ending June 12. Continuing claims for the week ending June 5 rose by 88,000 to 4.57 million.

Upcoming on the economic calendar are reports on the housing price index on June 29, pending home sales on July 1 and factory orders on July 2.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132

According to the Federal Reserve, consumer credit debt rose in April by $954.8 million. Economists had forecast that consumer debt would fall by $1 billion in April. Consumer credit debt fell in March by $5.44 billion.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending June 4 declined 12.2%. Refinancing applications fell 14.3%. Purchase volume decreased 5.7%.

Wholesalers increased their inventories by 0.4% in April, following an upwardly revised 0.7% rise in March. Sales at the wholesale level rose 0.7% in April, marking the 13th straight monthly gain.

The trade deficit increased 0.6% to $40.3 billion in April. It was the highest level since December 2008 and follows a $40 billion gap in March.

Retail sales fell 1.2% in May, after gaining 0.6% in April. Economists had anticipated retail sales to rise 0.4% in May. The decline — the largest since a 2.2% drop in September — was led by a 9.3% drop in building materials.

The Reuters/University of Michigan consumer sentiment index for June's preliminary reading rose to 75.5, the highest since January 2008. The index hit a 30-year low of 55.3 in November 2008.

Total business inventories rose 0.4% in April, following an upwardly revised 0.7% increase in March. Total business sales rose 0.6% in April.

Initial claims for unemployment benefits fell by 3,000 to 456,000 for the week ending June 5. Continuing claims for the week ending May 29 fell by 255,000 to 4.46 million, the lowest level since December 2008.

Upcoming on the economic calendar are reports on the housing market index on June 15, housing starts on June 16 and the index of leading economic indicators on June 17.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104
Woodbridge, VA 22192

Office: (703) 590-7132

The Institute for Supply Management reported that the monthly composite index of manufacturing activity was 59.7 in May, after reaching 60.4 in April. A reading above 50 signals expansion. It was the 10th straight month of expansion.

Total construction spending rose 2.7% to $869 billion in April, following an upwardly revised 0.4% rise in March. April's gain was the biggest since August 2000.

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 6% in April, after a revised 7.1% increase in March. On a year-over-year basis, pending home sales are up 22.4%.

Factory orders rose 1.2% in April, below the 1.8% increase economists had anticipated. It was the eighth straight gain and follows an upwardly revised 1.7% increase in March.

The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity was 55.4 in May, unchanged from 55.4 in April. A reading above 50 signals expansion. It was the fifth consecutive month of growth. Economists had anticipated a reading of 55.6.

The Labor Department reported that in the first quarter productivity rose at an annual rate of 2.8% and labor costs fell at an annual rate of 1.3%.

Initial claims for unemployment benefits fell by 10,000 to 453,000 for the week ending May 29. Continuing claims for the week ending May 22 rose by 31,000 to 4.66 million. Employers added 431,000 jobs in May, following a 290,000 advance in April. This pushed the unemployment rate down from 9.9% in April to 9.7% in May.

Upcoming on the economic calendar are reports on wholesale trade on June 9, international trade on June 10 and retail sales on June 11.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104
Woodbridge, VA 22192

Office: (703) 590-7132

Existing home sales rose 7.6% in April to a seasonally adjusted annual rate of 5.77 million units from 5.36 million units in March. The inventory of unsold homes on the market rose 11.5% to 4.04 million, an 8.4-month supply at the current sales pace, up from an 8.1-month supply in March.

The Standard & Poor’s/Case-Shiller 20-city housing price index — on a seasonally adjusted basis — was unchanged in March after a 0.1% decline in February.

The consumer confidence index rose to 63.3 in May from a slightly revised 57.7 in April. Economists had anticipated a reading of 59. 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 index of mortgage applications for the week ending May 21 rose 11.3%. Refinancing applications jumped 17%. Purchase volume decreased 3.3%.

Orders for durable goods — items expected to last three or more years — rose 2.9% in April after falling a slightly revised 1.2% in March. The increase was largely due to a jump in demand for commercial aircraft. Excluding volatile transportation-related goods, orders posted a monthly decrease of 1%.

New home sales rose 14.8% in April to a seasonally adjusted annual rate of 504,000 units from an upwardly revised rate of 439,000 units in March. Economists had expected a pace of 425,000 units. The April reading was the highest level since May 2008.

Initial claims for unemployment benefits fell by 14,000 to 460,000 for the week ending May 22. Continuing claims for the week ending May 15 fell by 49,000 to 4.61 million.

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

Prospect Mortgage

3985 Prince William Co. Pky., Suite 104
Woodbridge, VA 22192

Office: (703) 590-7132