Economic Updates

Last Week in the News

The National Association of Home Builders/Wells Fargo housing market index rose four points in April to 19. Economists had anticipated a reading of 16. An index reading below 50 indicates negative sentiment about the housing market.

The combined construction of new single-family homes and apartments in March rose 1.6% to a seasonally adjusted annual rate of 626,000 units. Applications for new building permits, seen as an indicator of future activity, jumped 7.5% to an annual rate of 685,000 units.

Consumer prices rose a seasonally adjusted 0.1% in March, following a flat reading in February. On a year-over-year basis, consumer prices are up 2.3%.

The trade deficit increased 7.4% to $39.7 billion in February from a revised $36.95 billion gap in January. Economists had expected the trade deficit to widen to $38.5 billion. Exports rose 0.2% to $143.2 billion. Imports increased 1.7% to $182.9 billion.

Retail sales rose 1.6% in March, following a revised 0.5% increase in February. Economists had anticipated retail sales to rise 1.2% in March. On a year-over-year basis, retail sales increased 7.6%.

Total business inventories rose 0.5% in February, following a revised 0.2% increase in January. The February increase was the largest since July 2008.

Industrial production at the nation’s factories, mines and utilities increased 0.1% in March, following a 0.3% gain in February. It was the ninth consecutive monthly increase.

Initial claims for unemployment benefits unexpectedly rose by 24,000 to 484,000 in the week ending April 10. Continuing claims for the week ending April 3 rose by 73,000 to 4.639 million.

Upcoming on the economic calendar are reports on the index of leading economic indicators on April 19, existing home sales on April 22 and new home sales on April 23.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pky., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132