ECONOMIC UPDATES
Last Week in
the News
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The National
Association of Home Builders/Wells Fargo monthly housing market index rose two
points in August to 37, the highest level since February 2007. An index reading
below 50 indicates negative sentiment about the housing market.
The
producer price index, which tracks wholesale price inflation, rose 0.3% in July,
following a 0.1% increase in June. On a year-over-year basis, wholesale prices
were up 0.5% in July. Core prices - excluding food and fuel - rose 0.4% in
July.
Retail sales rose 0.8% to $403.9 billion in July. This follows a
revised 0.7% decrease in June. On a year-over-year basis, retail sales increased
4.1% in July.
The Mortgage Bankers Association said its seasonally
adjusted composite index of mortgage applications for the week ending August 10
fell 4.5%. Refinancing applications decreased 5%. Purchase volume fell
2%.
Consumer prices were unchanged in July, following a flat reading in
June. Compared to a year ago, consumer prices are up 1.4% in July. Consumer
prices at the core rate - excluding volatile food and energy prices - were up
0.1% in July.
The combined construction of new single-family homes and
apartments in July fell 1.1% to a seasonally adjusted annual rate of 746,000
units. Single-family starts decreased 6.5%. Volatile multifamily starts rose
12.4%. Compared to a year ago, housing starts are up 21.5% in July. Applications
for new building permits, seen as an indicator of future activity, rose 6.8% to
an annual rate of 812,000 units.
Initial claims for unemployment benefits
for the week ending August 11 rose by 2,000 to 366,000 from an upwardly revised
364,000 the prior week. Continuing claims for the week ending August 4 fell
31,000 to 3.305 million.
Upcoming on the economic calendar are reports on
existing home sales on August 22 and new home sales on August
23.
Provided by:
Judy Haller
Prospect Mortgage
3985 Prince
William Co. Pkwy., Suite 104
Woodbridge, VA 22192
Office: (703)
590-7132
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