ECONOMIC UPDATES

In its third and final report for the fourth quarter of 2010, the Commerce Department announced that gross domestic product — the total output of goods and services produced in the U.S. — increased at an annual rate of 3.1%, rather than the 2.8% increase previously reported.

Existing home sales fell 9.6% in February to a seasonally adjusted annual rate of 4.88 million units from 5.36 million units in January. The inventory of unsold homes on the market increased 3.5% to 3.488 million, an 8.6-month supply at the current sales pace, up from a 7.5-month supply in January.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending March 18 rose 2.7%. Refinancing applications increased 2.7%. Purchase volume rose 2.7%.

New home sales fell 16.9% in February to a seasonally adjusted annual rate of 250,000 units from a rate of 284,000 units in January. Economists had expected a pace of 290,000 units in February.

Orders for durable goods — items expected to last three or more years — fell 0.9% in February after a revised 3.6% increase in January. Excluding volatile transportation-related goods, orders posted a monthly decrease of 0.6%.

Retail sales fell 0.1% for the week ending March 19, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 3%.

Initial claims for unemployment benefits fell by 5,000 to 382,000 for the week ending March 19. Continuing claims for the week ending March 12 fell by 2,000 to 3.72 million.

Upcoming on the economic calendar are reports on pending home sales on March 28 and construction spending on April 1.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132