Economic Updates

Last Week in the News

The Conference Board reported that its index of leading economic indicators rose 1% in April. It was the first gain in seven months and the biggest gain since November 2005. The index is designed to forecast economic activity in the next three to six months.

The National Association of Home Builders/Wells Fargo housing market index rose two points in May to 16. This follows a five point jump in April. It was the first back-to-back monthly gain since February 2008. An index reading below 50 indicates negative sentiment about the housing market. However, the latest gain confirms strength in the prior month and it’s the best reading since September 2008.

Construction of new homes and apartments fell 12.8% in April to a seasonally adjusted annual rate of 458,000 units, the slowest pace since recordkeeping began in 1959. The drop was led by a 46.1% decrease in the volatile construction of multifamily units. Construction of single-family homes rose 2.8% to an annual rate of 368,000 and building permits were up 3.6% to a rate of 373,000 in April.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending May 15 increased 2.3% to 915.9 from 895.6 the previous week. Purchase volume fell 4.4% to 254, while refinancing applications jumped 4.5% to 4,794.4.

The Labor Department said initial claims for unemployment benefits fell by 12,000 to 631,000 in the week ending May 16 from the previous week's upwardly revised figure of 643,000. The number of people continuing to claim jobless benefits in the week ending May 9 rose to 6.66 million, a record-high figure for the 16th straight week.

Upcoming on the economic calendar are reports on consumer confidence on May 26, existing home sales on May 27 and new home sales on May 28.

Provided by:
Judy Haller

Prospect Mortgage
3985 Prince William Co. Pky., Suite 104
Woodbridge, VA 22192
Office: (703) 590-7132