ECONOMIC UPDATES

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending June 10 rose 13%. Refinancing applications increased 16.5%. Purchase volume rose 4.5%.

Retail sales fell 0.2% to $387.1 billion in May after a revised 0.3% increase in April. On a year-over-year basis, retail sales rose 7.7%.

The combined construction of new single-family homes and apartments in May rose 3.5% to a seasonally adjusted annual rate of 560,000 units. Single-family starts increased 3.7%. Multifamily starts rose 2.9%. Applications for new building permits, seen as an indicator of future activity, rose 8.7% to an annual rate of 612,000 units.

Total business inventories rose 0.8% in April to $1.49 trillion, up 10.6% from a year ago. Total business sales increased 0.1% to $1.18 trillion in April, up 11% from a year ago.

Consumer prices rose a seasonally adjusted 0.2% in May, following a 0.4% increase in April. For the year, seasonally adjusted consumer prices are up 3.4%.

Industrial production at the nation's factories, mines and utilities rose 0.1% in May. Compared to a year ago, industrial production is up 3.4%. Capacity utilization was 76.7% in May.

The National Association of Home Builders/Wells Fargo monthly housing market index fell three points in June to 13. An index reading below 50 indicates negative sentiment about the housing market.

Upcoming on the economic calendar are reports on existing home sales on June 21 and new home sales on June 23.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132