ECONOMIC UPDATES

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Total construction spending rose 0.3% to $820.7 billion in April from a revised $818.1 billion in March. Compared to April 2011, construction spending is up 6.8%.

The Standard & Poor's/Case-Shiller 20-city housing price index - on a non-seasonally adjusted basis - showed no change in March, following a 0.8% decrease in February. On a year-over-year basis, prices fell 2.6% compared with March 2011.

Pending home sales, a forward-looking indicator based on signed contracts, fell 5.5% in April after a revised 3.8% increase in March. On a year-over-year basis, pending home sales are up 14.4% compared with April 2011.

The Mortgage Bankers Association said its seasonally adjusted composite index of mortgage applications for the week ending May 25 fell 1.3%. Refinancing applications decreased 1.5%. Purchase volume fell 0.6%.

The Institute for Supply Management reported that the monthly composite index of manufacturing activity fell to 53.5 in May after a reading of 54.8 in April. A reading above 50 signals expansion.

The Commerce Department announced that gross domestic product - the total output of goods and services produced in the U.S. - increased at a revised annual rate of 1.9% in the first quarter of 2012, compared to the initial estimate of 2.2%. This follows a 3% pace of growth in the fourth quarter of 2011.

Initial claims for unemployment benefits for the week ending May 26 rose by 10,000 to 383,000 from a revised 373,000 the prior week. Continuing claims for the week ending May 19 fell by 36,000 to 3.242 million. The unemployment rate rose to 8.2% in May from 8.1% in April. Employers added 69,000 jobs in May, the fewest in a year.

Upcoming on the economic calendar are reports on wholesale trade and international trade on June 8.

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