Economic Updates

Last Week in the News

--------------------------------------------------------------------------------

The Labor Department reported that the unemployment rate fell to 10% in November from 10.2% in October. Employers cut 11,000 jobs, the smallest monthly loss since the recession began in December 2007. Payrolls were forecast to decline by 125,000.

The Institute for Supply Management reported the monthly index of manufacturing activity fell to 53.6 in November after reaching a three-year high of 55.7 in October. However, the new orders component rose to 60.3 from 58.5. A reading above 50 signals expansion.

The Commerce Department reported total construction spending was unchanged in October after dropping 1.6% in September. Economists had expected a decrease of 0.4%. Private residential activity rose 4.4%.

The National Association of Realtors reported that its pending home sales index, a forward-looking indicator based on signed contracts, rose 3.7% to 114.1 in October, following a 6.1% increase in September. It was the ninth consecutive monthly increase. On a year-over-year basis, pending home sales are up 31.8%.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending November 27 rose 2.1% to 613.7. Purchase volume increased 4.1% to 232.3. Refinancing applications gained 1.7% to 2866.4.

The Institute for Supply Management reported the monthly index of non-manufacturing activity was 48.7 in November, down from 50.6 in October. A reading above 50 signals expansion.

The Labor Department reported productivity rose at an annual rate of 8.1% in the third quarter, the largest gain in six years. Labor costs fell at an annual rate of 2.5%.

The Commerce Department reported factory orders rose 0.6% in October, following an upwardly revised 1.6% gain in September. It was the sixth gain in the past seven months.

Upcoming on the economic calendar are reports on wholesale trade on December 9 and retail sales on December 11.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pky., Suite 104

Woodbridge, VA 22192