ECONOMIC UPDATES

In the News

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The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending November 9 rose 12.6%. Refinancing applications increased 13%. Purchase volume rose 11%.

The producer price index, which tracks wholesale price inflation, fell 0.2% in October, following a 1.1% increase in September. On a year-over-year basis, wholesale prices were up 2.3% in October. Core prices - excluding food and fuel - fell 0.2% in October.

Retail sales fell 0.3% to $411.6 billion in October. This follows an upwardly revised 1.3% increase in September. Compared to October 2011, retail sales have increased 3.8%.

Total business inventories rose 0.7% in September to $1.612 trillion, up 6.2% from a year ago. Total business sales increased 1.4% to $1.263 trillion in September, up 4.4% from a year ago. The total business inventories/sales ratio in September was 1.25.

Consumer prices rose 0.1% in October, following a 0.6% increase in September. Compared to October 2011, consumer prices have risen 2.2%. Consumer prices at the core rate - excluding volatile food and energy prices - were up 0.2% in October.

Industrial production at the nation's factories, mines and utilities fell 0.4% in October after increasing 0.2% in September. Compared to October 2011, industrial production has increased 1.7%. Capacity utilization fell to 77.8% in October from a revised 78.2% in September.

Initial claims for unemployment benefits for the week ending November 10 rose by 78,000 to 439,000. Continuing claims for the week ending November 3 rose by 171,000 to 3.334 million.

Upcoming on the economic calendar are reports on existing home sales on November 19 and housing starts on November 20.

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