Economic Updates

Last Week in the News

The Commerce Department announced that gross domestic product — the total output of goods and services produced in the U.S. — increased at an annual rate of 3.2% in the first quarter of 2010. Economists had expected a slightly larger 3.4% increase. This follows a 5.6% pace of growth in the fourth quarter of 2009, marking the best back-to-back performance since the second half of 2003.

According to the ICSC-Goldman Sachs index, retail sales rose 0.2% for the week ending April 24. It was the sixth consecutive gain. On a year-over-year basis, retailers saw sales increase 5.5%, the best showing on record, topping a 4.7% increase for the week ending April 3.

The Standard & Poor’s/Case-Shiller 20-city housing price index fell a seasonally adjusted 0.1% in February. Following a 0.3% increase in January, it was the first decline after eight consecutive monthly gains.

The consumer confidence index rose to 57.9 in April from a slightly revised 52.3 in March. Economists had anticipated a reading of 53.5. The index was benchmarked at 100 in 1985, a year chosen because it was neither a peak nor a trough in consumer confidence.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending April 23 fell 2.9%. Purchase volume increased 7.4%. Refinancing applications fell 8.8%.

Initial claims for unemployment benefits fell by 11,000 to 448,000 for the week ending April 24. Continuing claims for the week ending April 17 fell by 18,000 to 4.6 million.

Upcoming on the economic calendar are reports on construction spending, pending home sales and factory orders on May 4, and consumer credit on May 7.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pky., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132