ECONOMIC UPDATES

Last Week in the News

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According to the Federal Reserve, monthly consumer credit debt rose $6.5 billion in June for a total credit debt level of $2,577.4 trillion. Revolving debt, which includes credit cards, decreased $3.7 billion to $864.6 billion. Non-revolving debt, including loans for cars, rose $10.2 billion to $1,712.8 trillion.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending August 3 fell 1.8%. Refinancing applications decreased 2%. Purchase volume fell 1%.

The Labor Department reported that in the second quarter, productivity rose to an annual rate of 1.6% and labor costs increased at an annual rate of 1.7%.

The trade deficit decreased to $42.9 billion in June from a revised $48 billion in May. Exports rose $1.7 billion or 0.9% to $185 billion. Imports fell $3.5 billion or 1.5% to $227.9 billion.

Wholesalers decreased their inventories 0.2% to $481.9 billion in June. Sales at the wholesale level fell 1.4% to $402.9 billion in June. On a year-over-year basis, sales were 3.1% higher since June 2011.

Import prices fell 0.6% in July, following a 2.7% decrease in June. On a year-over-year basis, import prices were down 3.2% in July, led mostly by a decline in fuel prices. Export prices rose 0.5% in July after declining 1.7% in June. Compared to a year ago, export prices were down 1.2% in July.

Initial claims for unemployment benefits for the week ending August 4 fell by 6,000 to 361,000 from an upwardly revised 367,000 the prior week. Continuing claims for the week ending July 28 rose 53,000 to 3.332 million.

Upcoming on the economic calendar are reports on the housing market index on August 15 and housing starts on August 16.

Provided by:
Judy Haller
Prospect Mortgage
3985 Prince William Co. Pkwy., Suite 104
Woodbridge, VA 22192
Office: (703) 590-7132