ECONOMIC UPDATES

Last Week in the News
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Pending home sales, a forward-looking indicator based on signed contracts, rose 7.3% in November after a 10.4% increase in October. On a year-over-year basis, pending home sales are up 5.9%. The number of pending home sales in November was the highest level in 19 months.

The Standard & Poor's/Case-Shiller 20-city housing price index - on a non-seasonally adjusted basis - fell 1.2% in October after a revised 0.7% decrease in September. On a year-over-year basis, prices fell 3.4% compared with October 2010.

Retail sales rose 0.9% for the week ending December 24, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 4.5%.

The consumer confidence index rose to 64.5 in December from a revised 55.2 in November. It was the highest level since April. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence. Economists consider a reading of 90 to be the threshold for a healthy economy.

Initial claims for unemployment benefits rose by 15,000 to 381,000 for the week ending December 24. However, the four-week moving average for initial claims - considered a less volatile measure - fell to 375,000, the lowest level since June 2008. Continuing claims for the week ending December 17 rose by 34,000 to 3.6 million.

Upcoming on the economic calendar are reports on construction spending on January 3, factory orders on January 4 and the employment situation on January 6.

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