ECONOMIC UPDATES

Retail sales rose 1% for the week ending December 25, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 4.8%, the highest rate since April.

The Standard & Poor's/Case-Shiller 20-city housing price index — on a non-seasonally adjusted basis — fell 1.3% in October after a 0.8% decrease in September. On a year-over-year basis, prices fell 0.8% compared with October 2009.

The consumer confidence index fell to 52.5 in December from an upwardly revised 54.3 in November. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.

Initial claims for unemployment benefits fell by 34,000 to 388,000 for the week ending December 25. It was the lowest level since July 2008. Continuing claims for the week ending December 18 rose by 57,000 to 4.13 million.

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 3.5% in November after a revised 10.1% increase in October. On a year-over-year basis, pending sales are down 2.4%.

Upcoming on the economic calendar are reports on construction spending on January 3, factory orders on January 4 and consumer credit on January 7.

Provided by:
Judy Haller
Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104

Woodbridge, VA 22192