ECONOMIC UPDATES
Last Week in the News
--------------------------------------------------------------------------------
The National
Association of Home Builders/Wells Fargo monthly housing market index rose six
points in July to 35, the highest level since March 2007. An index reading below
50 indicates negative sentiment about the housing market.
The combined
construction of new single-family homes and apartments in June rose 6.9% to a
seasonally adjusted annual rate of 760,000 units. Single-family starts increased
4.7%. Volatile multifamily starts rose 12.8%. Compared to a year ago, housing
starts are up 23.6%. Applications for new building permits, seen as an indicator
of future activity, fell 3.7% to an annual rate of 755,000 units.
Retail
sales fell 0.5% to $401.5 billion in June. This follows a 0.2% decrease in May.
On a year-over-year basis, retail sales increased 3.8% in June.
The
Mortgage Bankers Association said its seasonally adjusted composite index of
mortgage applications for the week ending July 13 rose 16.9%. Refinancing
applications increased 22%. Purchase volume fell 0.1%.
Consumer prices
were unchanged in June, following a 0.3% decrease in May. Compared to a year
ago, consumer prices are up 1.7% in June. Consumer prices at the core rate -
excluding volatile food and energy prices - were up 0.2% in
June.
Existing home sales fell 5.4% in June to a seasonally adjusted
annual rate of 4.37 million units from 4.62 million units in May. The inventory
of unsold homes on the market decreased 3.2% to 2.39 million in June, a
6.6-month supply at the current sales pace, up from a 6.4-month supply in
May.
Initial claims for unemployment benefits for the week ending July 14
rose by 34,000 to 386,000 from an upwardly revised 352,000 the prior week.
Continuing claims for the week ending July 7 rose 1,000 to 3.314
million.
Upcoming on the economic calendar are reports on new home sales
on July 25, pending home sales on July 26 and gross domestic product on July
27.
Provided by:
Judy Haller
Prospect Mortgage
3985 Prince
William Co. Pkwy., Suite 104
Woodbridge, VA 22192
Office: (703)
590-7132
Comments