Economic Update June 18th, 2007
Last Week in the News
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Fueled by a surge in gasoline prices, May's Consumer Price Index increased 0.7%, its fastest pace in 20 months, the Labor Department reported June 15. However, core consumer prices, which exclude volatile food and energy costs, rose only 0.1%, slightly lower than the 0.2% analysts had predicted.
The Producer Price Index, which measures inflation at the wholesale level, rose 0.9% in May, worse than the 0.6% increase economists had expected. Yet, wholesale core inflation increased a moderate 0.2%, slightly better than the 0.3% hike analysts had anticipated.
Meanwhile, compared to April, retail sales in May surged 1.4%, the sharpest rise in 16 months and double the increase analysts had expected, the Commerce Department said June 13. The increase should ease fears that consumer spending, which accounts for two-thirds of the economy, could falter in coming months under the impact of rising gasoline prices, a challenging housing market and recent increases in interest rates.
Rates on 30-year mortgages rose for a fifth straight week, hitting the highest level in 11 months, Freddie Mac said June 14. The rise parallels rising yields on Treasury securities.
Foreclosures for May were up 19% from April and up nearly 90% from May 2006, RealtyTrac reported June 14. In Nevada, there was one foreclosure filing for every 166 households last month, nearly four times the national average and the highest rate in the country.
This week look for updates on building starts and housing permits on June 19.
Thank you,
Jason Lash
Branch Manager
Family Home Lending
866-366-5724
http://www.virtualloanpro.com/
http://www.homecredible.com/
http://www.honestmortgageanswers.com/
Posted by Jason Lash at 4:16 PM
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