ECONOMIC UPDATES

Retail sales rose 1.3% for the week ending November 6, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 3.4%, the best reading since August.

Wholesalers increased their inventories 1.5% in September, following an upwardly revised 1.2% rise in August. Sales at the wholesale level rose 0.4% in September after a 0.5% increase in August. Economists had anticipated inventories would increase 0.7% in September.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending November 5 rose 5.8%. Refinancing applications increased 6%. Purchase volume rose 5.5%.

The trade deficit decreased 5.3% to $44 billion in September. Economists had expected the trade deficit to fall to $45 billion. Exports rose 0.3% to $154.1 billion. Imports decreased 1% to $198.1 billion.

The Reuters/University of Michigan consumer sentiment index for November's preliminary reading rose to 69.3 from 67.7 in October. During the economic expansion that ended in December 2007, the index averaged 88.9.

Import prices rose 0.9% in October, following a 0.3% decrease in September. The increase was driven by a 3.3% rise in petroleum prices. On a year-over-year basis, import prices are up 3.6%. Export prices rose 0.8% in October.

Initial claims for unemployment benefits fell by 24,000 to 435,000 for the week ending November 6. Continuing claims for the week ending October 30 fell by 86,000 to 4.3 million, the lowest level since the recovery began.

Upcoming on the economic calendar are reports on retail sales on November 15, the housing market index on November 16 and housing starts on November 17.

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132