ECONOMIC UPDATES

The National Association of Home Builders/Wells Fargo housing market index was unchanged in January at 16. Economists had anticipated a reading of 17. 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 January 14 rose 5%. Refinancing applications increased 7.7%. Purchase volume fell 1.9%.

The combined construction of new single-family homes and apartments in December fell 4.3% to a seasonally adjusted annual rate of 529,000 units. Single-family starts fell 9%. Multifamily starts rose 17.9%. Applications for new building permits, seen as an indicator of future activity, rose 16.7% to an annual rate of 635,000 units.

Retail sales fell 0.1% for the week ending January 15, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 1.4%.

Existing home sales rose 12.3% in December to a seasonally adjusted annual rate of 5.28 million units from 4.7 million units in November. The inventory of unsold homes on the market declined 4.2% to 3.56 million, an 8.1-month supply at the current sales pace, down from a 9.5-month supply in November.

The index of leading economic indicators — designed to forecast economic activity in the next three to six months — rose 1% in December, largely due to a boost in building permits.

Initial claims for unemployment benefits fell by 37,000 to 404,000 for the week ending January 15. Continuing claims for the week ending January 8 fell by 26,000 to 3.8 million.

Upcoming on the economic calendar are reports on the housing price index on January 25, new home sales on January 26 and pending home sales on January 27.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132