Economic Updates
Last Week in the News
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On Tuesday, July 14, the Labor Department reported that the producer price index, which tracks wholesale prices, rose 1.8% in June, following a 0.2% increase in May. The increase was double what economists expected and largely attributed to rising energy costs. Gasoline prices increased 18.5% and home heating oil rose 15.4%.
Retail sales rose 0.6% in June, following a 0.5% increase in May. The gains were largely fueled by auto purchases and the rising cost of gasoline.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending July 10 rose 4.3% to 514.4. Purchase volume fell 9.4% to 258.8. Refinancing applications jumped 17.7% to 2009.4.
The Labor Department reported that consumer inflation rose a seasonally adjusted 0.7% in June, slightly higher than the 0.6% economists had forecast. It was the biggest monthly gain since July 2008 and was driven by the increase in gasoline prices.
The Federal Reserve reported that industrial production at the nation’s factories, mines and utilities fell 0.4% in June, compared to a revised 1.2% decrease in May. Economists had expected a decline of 0.7% in June. The overall factory-operating rate was down to 68% of capacity in June, the lowest level since record-keeping began in 1967.
Initial claims for unemployment benefits fell by 47,000 to 522,000 in the week ending July 11 from a revised figure of 569,000 in the previous week. The number of people continuing to claim jobless benefits in the week ending July 4 plunged by a record 642,000 to 6.27 million, the lowest level since mid-April.
The National Association of Home Builders/Wells Fargo housing market index rose two points in July to 17. An index reading below 50 indicates negative sentiment about the housing market.
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On Tuesday, July 14, the Labor Department reported that the producer price index, which tracks wholesale prices, rose 1.8% in June, following a 0.2% increase in May. The increase was double what economists expected and largely attributed to rising energy costs. Gasoline prices increased 18.5% and home heating oil rose 15.4%.
Retail sales rose 0.6% in June, following a 0.5% increase in May. The gains were largely fueled by auto purchases and the rising cost of gasoline.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending July 10 rose 4.3% to 514.4. Purchase volume fell 9.4% to 258.8. Refinancing applications jumped 17.7% to 2009.4.
The Labor Department reported that consumer inflation rose a seasonally adjusted 0.7% in June, slightly higher than the 0.6% economists had forecast. It was the biggest monthly gain since July 2008 and was driven by the increase in gasoline prices.
The Federal Reserve reported that industrial production at the nation’s factories, mines and utilities fell 0.4% in June, compared to a revised 1.2% decrease in May. Economists had expected a decline of 0.7% in June. The overall factory-operating rate was down to 68% of capacity in June, the lowest level since record-keeping began in 1967.
Initial claims for unemployment benefits fell by 47,000 to 522,000 in the week ending July 11 from a revised figure of 569,000 in the previous week. The number of people continuing to claim jobless benefits in the week ending July 4 plunged by a record 642,000 to 6.27 million, the lowest level since mid-April.
The National Association of Home Builders/Wells Fargo housing market index rose two points in July to 17. An index reading below 50 indicates negative sentiment about the housing market.
Upcoming on the economic calendar are reports on the index of leading economic indicators on July 20 and existing home sales on July 23.
Provided by:
Judy Haller
Senior Loan Officer
Prospect Mortgage
3985 Prince William Co. Pky., Suite 104
Woodbridge, VA 22192
Office: (703) 590-7132
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