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ECONOMIC UPDATES

Last Week in the News

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The Reuters/University of Michigan consumer sentiment index for May's preliminary reading rose to 77.8 from 76.4 at the end of April. It was the highest reading since January 2008.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending May 4 rose 1.7%. Refinancing applications increased 1.3%. Purchase volume rose 3.4%.

The producer price index, which tracks wholesale price inflation, fell 0.2% in April after a flat reading in March. On a year-over-year basis, wholesale prices are up 1.9%, the seventh straight month of slowing year-over-year increases. Core prices - excluding food and fuel - rose 0.2% in April.

Wholesalers increased their inventories 0.3% to $480.4 billion in March, the slowest pace in four months. Sales at the wholesale level rose 0.5% to $411.1 billion in March. On a year-over-year basis, sales were 6.5% higher since March 2011.

The trade deficit increased to $51.8 billion in March from a revised $45.4 billion in February. Exports rose 2.9% to $186.8 billion in March. Imports rose 5.2% to $238.6 billion in March.

Import prices fell 0.5% in April, following a 1.5% increase in March. On a year-over-year basis, import prices are up 0.5%. Export prices rose 0.4% in April after a 0.8% increase in March. On a year-over-year basis, import prices are up 0.7%.

Initial claims for unemployment benefits for the week ending May 5 fell by 1,000 to 367,000 from a revised 368,000 the prior week. Continuing claims for the week ending April 28 fell by 61,000 to 3.229 million.

Upcoming on the economic calendar are reports on the consumer price index and the housing market index on May 15 and housing starts on May 16.

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

ECONOMIC UPDATES

Last Week in the News
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The Commerce Department reported that consumer spending rose $32.3 billion or 0.3% in March, just one-third of February's increase. Personal income in March increased $50.3 billion or 0.4%, after a 0.3% rise in February.

The Institute for Supply Management reported that the monthly composite index of manufacturing activity rose to 54.8 in April from 53.4 in March. A reading above 50 signals expansion. It was the 33rd straight month of expansion.

Total construction spending rose 0.1% to $808.1 billion in March from a revised $807.3 billion in February. Economists had anticipated an increase of 0.5% in March. Compared to a year ago, construction spending is up 6%.

Factory orders fell 1.5% in March, the biggest drop in three years, to a seasonally adjusted $460.5 billion, following a revised 1.1% increase in February. Excluding the volatile transportation sector, orders increased slightly in March.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending April 27 rose 0.1%. Refinancing applications decreased 0.7%. Purchase volume rose 2.9%.

The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity fell to 53.5 in April from 56 in March. A reading above 50 signals expansion. It was the 28th straight month of expansion in the services sector.

Initial claims for unemployment benefits for the week ending April 28 fell by 27,000 to 365,000 from a revised 392,000 the prior week. Continuing claims for the week ending April 21 fell by 53,000 to 3.276 million. The unemployment rate fell to a three-year low of 8.1% in April from 8.2% in March.

Upcoming on the economic calendar are reports on international trade on May 10 and the producer price index on May 11.

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

ECONOMIC UPDATES

Last Week in the News
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Pending home sales, a forward-looking indicator based on signed contracts, rose 4.1% in March, the highest level since April 2010, after an upwardly revised 0.4% increase in February. On a year-over-year basis, pending home sales in March were up 12.8%.

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 2.2% in the first quarter of 2012. This follows a 3% pace of growth in the fourth quarter of 2011.

New home sales fell 7.1% in March to a seasonally adjusted annual rate of 328,000 units from an upwardly revised rate of 353,000 units in February. The initial February reading was 313,000. The January rate was revised higher to 329,000 units. On a year-over-year basis, new home sales in March were up 7.5%. At the current sales pace, there's a 5.3-month supply of new homes on the market.

The Standard & Poor's/Case-Shiller 20-city housing price index - on a non-seasonally adjusted basis - fell 0.8% in February, after a 1% decrease in January. On a year-over-year basis, prices fell 3.5% compared with February 2011.

Orders for durable goods - items expected to last three or more years - fell $8.8 billion or 4.2% to $202.6 billion in March, the biggest drop in more than three years. This follows a revised 1.9% increase in February. Excluding volatile transportation-related goods, orders posted a monthly decrease of 1.1%.

Initial claims for unemployment benefits for the week ending April 21 fell by 1,000 to 388,000 from a revised 389,000 the prior week. Continuing claims for the week ending April 14 rose by 3,000 to 3.315 million.

Upcoming on the economic calendar are reports on construction spending on May 1 and factory orders on May 2.

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

ECONOMIC UPDATES

Last Week in the News

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Retail sales rose 0.8% to $411.1 billion in March. This follows a downwardly revised 1% increase in February. On a year-over-year basis, retail sales increased 6.5%.
The National Association of Home Builders/Wells Fargo monthly housing market index fell three points in April to 25 from a reading of 28 in March. It was the first drop after seven consecutive monthly gains. An index reading below 50 indicates negative sentiment about the housing market.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending April 13 rose 6.9%. Refinancing applications increased 13.5%. Purchase volume fell 11.2%.

The combined construction of new single-family homes and apartments in March fell 5.8% to a seasonally adjusted annual rate of 654,000 units, after a decrease of 2.8% in February. Compared to a year ago, housing starts are up 10.3%. Applications for new building permits, seen as an indicator of future activity, rose 4.5% to an annual rate of 747,000 units.

Existing home sales fell 2.6% in March to a seasonally adjusted annual rate of 4.48 million units from an upwardly revised 4.6 million units in February. The inventory of unsold homes on the market decreased 1.3% to 2.37 million, a 6.3-month supply at the current sales pace.

Initial claims for unemployment benefits for the week ending April 14 fell by 2,000 to 386,000. Continuing claims for the week ending April 7 rose by 26,000 to 3.29 million.

Upcoming on the economic calendar are reports on new home sales on April 24, pending home sales on April 26 and gross domestic product on April 27.

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

ECONOMIC UPDATES

Last Week in the News

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Retail sales rose 0.5% for the week ending April 7, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 4.5%.

Wholesalers increased their inventories 0.9% to $478.9 billion in February. Sales at the wholesale level rose 1.2% to $409.4 billion in February. On a year-over-year basis, sales were 9.3% higher since February 2011.

The trade deficit decreased to $46 billion in February from a revised $52.5 billion in January. Exports rose 0.1% to $181.2 billion. Imports dropped 2.7% to $227.2 billion.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending April 6 fell 2.4%. Refinancing applications decreased 3.1%. Purchase volume fell 0.5%.

The producer price index, which tracks wholesale price inflation, was unchanged in March after increasing 0.4% in February. On a year-over-year basis, seasonally adjusted wholesale prices are up 2.8%. Core prices - excluding food and fuel - rose 0.3% in March.

Consumer prices rose a seasonally adjusted 0.3% in March, following a 0.4% increase in February. Compared to a year ago, consumer prices are up 2.7%. Consumer prices at the core rate - excluding volatile food and energy prices - were up 0.2% in March. The Reuters/University of Michigan consumer sentiment index for April's preliminary reading fell to 75.7 from 76.2 in March.

Initial claims for unemployment benefits for the week ending April 7 rose by 13,000 to 380,000. Continuing claims for the week ending March 31 fell by 98,000 to 3.25 million.

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

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

ECONOMIC UPDATES

Last Week in the News

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The Institute for Supply Management reported that the monthly composite index of manufacturing activity rose to 53.4 in March after a reading of 52.4 in February. A reading above 50 signals expansion. It was the 32nd straight month of expansion.

Total construction spending fell 1.1% to $808.9 billion in February from a revised $818.1 billion in January. Economists had anticipated an increase of 0.7% in February. Compared to a year ago, construction spending is up 5.8%.

Retail sales fell 3.8% for the week ending March 31, according to the ICSC-Goldman Sachs index. On a year-over-year basis, retailers saw sales increase 4.2%.

Factory orders rose 1.3% in February to a seasonally adjusted $468.4 billion, following a revised 1.1% decrease in January. Excluding the volatile transportation sector, orders increased 0.9% in February.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending March 30 rose 4.8%. Refinancing applications increased 4%. Purchase volume rose 7.2%.

The Institute for Supply Management reported that the monthly composite index of non-manufacturing activity fell to 56 in March from 57.3 in February. A reading above 50 signals expansion. It was the 27th straight month of expansion in the services sector.

Initial claims for unemployment benefits for the week ending March 31 fell by 6,000 to 357,000. Continuing claims for the week ending March 24 fell by 16,000 to 3.33 million. The monthly unemployment rate fell to 8.2% in March, the lowest level since January 2009.

Upcoming on the economic calendar are reports on wholesale trade on April 10, international trade on April 12 and consumer inflation on April 13.

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