ECONOMIC UPDATES

Last Week in the News

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The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending June 8 rose 18%, the highest level since May 2009. Refinancing applications increased 19%, the highest level in more than a year. Purchase volume rose 13%, the highest level in six months.

Consumer prices fell 0.3% in May. For the year, consumer prices are up 1.7%. Consumer prices at the core rate - excluding volatile food and energy prices - were up 0.2% in May, matching April's pace.

The producer price index, which tracks wholesale price inflation, fell 1% in May. It was the largest one-month drop since July 2009 and follows a 0.2% decrease in April. On a year-over-year basis, seasonally adjusted wholesale prices were up 0.8% in May. Core prices - excluding food and fuel - rose 0.2% in May.

Retail sales fell 0.2% to $404.6 billion in May. This follows a downwardly revised 0.2% decrease in April. On a year-over-year basis, retail sales increased 5.3% in May.

The Reuters/University of Michigan consumer sentiment index for June's preliminary reading fell to 74.1 in June, a 2012 low, from 79.3 in May.

Industrial production at the nation's factories, mines and utilities fell 0.1% in May, after a 1% rise in April. Compared to a year ago, industrial production increased 4.7% in May. Capacity utilization eased to 79% from 79.2% in April.

Initial claims for unemployment benefits for the week ending June 9 rose by 6,000 to 386,000 from a revised 380,000 the prior week. Continuing claims for the week ending June 2 fell by 33,000 to 3.278 million.

Upcoming on the economic calendar are reports on housing starts on June 19 and existing home sales and leading economic indicators on June 21.

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