ECONOMIC UPDATES

Industrial production at the nation's factories, mines and utilities fell 0.2% in September, following a 0.2% increase in August. Economists had anticipated a gain of 0.2%. Capacity utilization fell to 74.7% in September from a revised 74.8% in August.

The National Association of Home Builders/Wells Fargo housing market index rose three points in October to 16. Economists had anticipated a reading of 14. An index reading below 50 indicates negative sentiment about the housing market.

According to the ICSC-Goldman Sachs index, retail sales fell 0.7% for the week ending October 16. On a year-over-year basis, retailers saw sales increase 1.7%, the weakest reading since May.

The combined construction of new single-family homes and apartments in September rose 0.3% to a seasonally adjusted annual rate of 610,000 units. Single-family starts rose 4.4%. Multifamily starts dropped 9.7%. Applications for new building permits, seen as an indicator of future activity, fell 5.6% to an annual rate of 539,000 units.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending October 15 fell 10.5%. Refinancing applications decreased 11.2%. Purchase volume fell 6.7%.

The index of leading economic indicators — designed to forecast economic activity in the next three to six months — rose 0.3% in September after a downwardly revised 0.1% increase in August.

Initial claims for unemployment benefits fell by 23,000 to 452,000 for the week ending October 16. Continuing claims for the week ending October 9 fell by 9,000 to 4.39 million, the lowest level since the recovery began.

Upcoming on the economic calendar are reports on existing home sales on October 25, the housing price index on October 26 and new home sales on October 27.

Provided by:

Judy Haller

Prospect Mortgage

3985 Prince William Co. Pkwy., Suite 104

Woodbridge, VA 22192

Office: (703) 590-7132