ECONOMIC UPDATES

Retail sales fell 2.1% for the week ending December 4, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 2.6%.

According to the Federal Reserve, consumer credit debt rose in October by $3.38 billion for a total credit level of $2.4 trillion. Figures for September were revised from an initial gain of $2.1 billion to a gain of $1.23 billion. Revolving debt, which includes credit cards, fell by $5.64 billion. Non-revolving debt, including loans for cars, rose by $9.02 billion.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending December 3 fell 0.9%. Refinancing applications decreased 1.4%. Purchase volume rose 1.8%.

Wholesalers increased their inventories 1.9% in October, following an upwardly revised 2.1% rise in September. Sales at the wholesale level rose 2.2% in October after a 0.5% increase in September. Economists had anticipated inventories would increase 0.8% in October.

The trade deficit decreased 13% to $38.7 billion in October from $44.6 billion in September. Economists had expected a trade deficit of $44.5 billion. Exports rose 3.2% to $158.7 billion. Imports decreased 0.5% to $197.4 billion.

The Reuters/University of Michigan consumer sentiment index for December's preliminary reading rose to 74.2 from 71.6 in November. The index hit a 30-year low of 55.3 in November 2008.

Initial claims for unemployment benefits fell by 17,000 to 421,000 for the week ending December 4. Continuing claims for the week ending November 27 fell by 191,000 to 4.09 million.

Upcoming on the economic calendar are reports on retail sales on December 14 and housing starts on December 16.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132