ECONOMIC UPDATES

Last Week in the News
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The National Association of Home Builders/Wells Fargo monthly housing market index was unchanged in August at 15. An index reading below 50 indicates negative sentiment about the housing market.

The combined construction of new single-family homes and apartments in July fell 1.5% to a seasonally adjusted annual rate of 604,000 units. Single-family starts decreased 4.9%.

Multifamily starts rose 7.8%. Applications for new building permits, seen as an indicator of future activity, fell 3.2% to an annual rate of 597,000 units.

Industrial production at the nation's factories, mines and utilities rose 0.9% in July. Compared to a year ago, industrial production is up 3.7%. Capacity utilization rose to 77.5% in July.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending August 12 rose 4.1%. Refinancing applications increased 8%.  Purchase volume fell 9.1%.

The producer price index, which tracks wholesale price inflation, rose 0.2% in July after a 0.4% decrease in June. For the year, seasonally adjusted wholesale prices are up 7.2%. Core prices - excluding food and fuel - rose 0.4% in July.

Existing home sales fell 3.5% in July to a seasonally adjusted annual rate of 4.67 million units from a revised 4.84 million units in June. The inventory of unsold homes on the market decreased to 3.65 million, a 9.4-month supply at the current sales pace, up from a 9.2-month supply in June.

Initial claims for unemployment benefits rose by 9,000 to 408,000 for the week ending August 13. Continuing claims for the week ending August 6 rose by 7,000 to 3.7 million.

Upcoming on the economic calendar are reports on new home sales on August 23 and gross domestic product on August 26.

Provided by:
Judy Haller
Prospect Mortgage
3985 Prince William Co. Pkwy., Suite 104
Woodbridge, VA 22192
Office: (703) 590-7132