ECONOMIC UPDATES

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending May 6 rose 8.2%. Refinancing applications increased 9%. Purchase volume rose 6.7%.

Retail sales rose 0.5% to $389.4 billion in April after a revised 0.9% increase in March. It was the 10th straight monthly gain. On a year-over-year basis, retail sales rose 7.6%.

Wholesalers increased their inventories 1.1% to $442.9 billion in March. This followed a 1% rise in February. Sales at the wholesale level rose 2.9% in March. On a year-over-year basis, sales were 13.3% higher since March 2010.

The trade deficit increased 6% to $48.2 billion in March from $45.4 billion in February. Exports rose 4.6% to $172.7 billion. Imports increased 4.9% to $220.8 billion.

The producer price index, which tracks wholesale price inflation, rose 0.8% in April after a 0.7% increase in March. For the year, seasonally adjusted wholesale prices are up 6.6%. Core prices — excluding food and fuel — rose 0.3% in April.

Total business inventories rose 1% in March to $1.48 trillion, up 10.1% from a year ago. Total business sales increased 2.2% to $1.2 trillion in March, up 11.8% from a year ago.

Consumer prices rose a seasonally adjusted 0.4% in April, following a 0.5% increase in March. For the year, seasonally adjusted consumer prices are up 3.1%.

Initial claims for unemployment benefits fell by 44,000 to 434,000 for the week ending May 7. Continuing claims for the week ending April 30 rose by 5,000 to 3.7 million.

Upcoming on the economic calendar are reports on the housing market index on May 16, housing starts on May 17 and existing home sales on May 19.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132