Economic Updates
Last Week in the News Existing home sales rose 7.2% in July to a seasonally adjusted annual rate of 5.24 million units from a revised level of 4.89 million units in June. July marks the fourth consecutive monthly increase in existing home sales and it was the largest monthly gain since record keeping began.
The National Association of Home Builders / Wells Fargo housing market index rose one point in August to 18. It was the highest level since June 2008. An index reading below 50 indicates negative sentiment about the housing market.
The combined construction of new single-family homes and apartments in July decreased 1% to a seasonally adjusted annual rate of 581,000 units. This follows a 6.5% increase in June. However, construction of new single-family homes rose 1.7% in July to a seasonally adjusted annual rate of 490,000 units.
The producer price index, which tracks wholesale prices, fell 0.9% in July, following a 1.8% increase in June. Compared with a year earlier, wholesale prices were down 6.8%, the most since a 5.3% decrease in August 1949.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending August 14 rose 5.6% to 527. Purchase volume rose 3.9% to 277.7. Refinancing applications increased 6.9% to 1,982.5. The refinance share of mortgage activity increased to 53.3% of total applications from 52.3% the previous week.
The index of leading economic indicators — designed to forecast economic activity in the next three to six months — rose 0.6% in July after a revised 0.8% gain in June. It was the fourth straight monthly increase and an indication the recession might be nearing an end.
Initial claims for unemployment benefits rose by 15,000 to 576,000 in the week ending August 15. The figure was higher than the 550,000 that economists had forecast. The number of people continuing to claim jobless benefits in the week ending August 8 fell by 2,000 to 6.24 million.
Upcoming on the economic calendar are reports on consumer confidence on August 25, and durable goods orders and new home sales on August 26.
Provided by:
Judy Haller Senior Loan Officer
Prospect Mortgage
3985 Prince William Co. Pkwy. Suite 104
Woodbridge, VA 22192
Office: (703) 590-7132
The National Association of Home Builders / Wells Fargo housing market index rose one point in August to 18. It was the highest level since June 2008. An index reading below 50 indicates negative sentiment about the housing market.
The combined construction of new single-family homes and apartments in July decreased 1% to a seasonally adjusted annual rate of 581,000 units. This follows a 6.5% increase in June. However, construction of new single-family homes rose 1.7% in July to a seasonally adjusted annual rate of 490,000 units.
The producer price index, which tracks wholesale prices, fell 0.9% in July, following a 1.8% increase in June. Compared with a year earlier, wholesale prices were down 6.8%, the most since a 5.3% decrease in August 1949.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending August 14 rose 5.6% to 527. Purchase volume rose 3.9% to 277.7. Refinancing applications increased 6.9% to 1,982.5. The refinance share of mortgage activity increased to 53.3% of total applications from 52.3% the previous week.
The index of leading economic indicators — designed to forecast economic activity in the next three to six months — rose 0.6% in July after a revised 0.8% gain in June. It was the fourth straight monthly increase and an indication the recession might be nearing an end.
Initial claims for unemployment benefits rose by 15,000 to 576,000 in the week ending August 15. The figure was higher than the 550,000 that economists had forecast. The number of people continuing to claim jobless benefits in the week ending August 8 fell by 2,000 to 6.24 million.
Upcoming on the economic calendar are reports on consumer confidence on August 25, and durable goods orders and new home sales on August 26.
Provided by:
Judy Haller Senior Loan Officer
Prospect Mortgage
3985 Prince William Co. Pkwy. Suite 104
Woodbridge, VA 22192
Office: (703) 590-7132
Comments (2)
You're right, for sure. There are still some mixed signals out there. For instance I just posted an article that states mortgage deliquincies are up again. I was screaming that prices were too low back in January but now, in my area, I think investors are getting too excited. There is a lot of competition for forclosures here now.
Justin Pierce, almost 15 years ago
It's great that home sales have bumped up for four consecutive months, however, I think it's too early to crack the champagne bottle. A large part of those sales are to first time buyers and bottom feeders in the REO space. The fact is there is still another wave of foreclosures to come from Option ARM and other exotic loans. Plus, lenders are still sitting on a very large inventory of foreclosed property that’s yet to hit the market. Tread cautiously, Marco Santarelli Norada Real Estate Investments <i>Your Premier Source for Turnkey Investment Property</i>
, almost 15 years ago