Last Week in the News --------------------------------------------------------------------------------
The Conference Board’s index of leading economic indicators inched ahead 0.1% in May, matching April’s increase and equaling analysts’ expectations. The index, released June 19, is designed to forecast economic activity in the next three to six months based on 10 components, including stock prices, building permits and initial claims for unemployment benefits.
The Producer Price Index (PPI), which measures the cost of goods before they reach store shelves, rose 1.4% in May, the biggest increase since November, the Labor Department said June 17. However, core PPI, which strips out energy and food prices, increased 0.2% in May, an improvement from a 0.4% rise in April.
Housing starts slumped 3.3% in May to an annual pace of 975,000 units, a level not seen since March 1991, the Commerce Department reported June 17. Although May housing starts were down 25% in the Midwest, 10.3% in the West and 4.4% in the South, the Northeast saw a 61.5% jump, led by a rebound in multifamily projects. Meanwhile, building permits in May fell to an annual rate of 969,000, slightly better than the 960,000 rate that economists expected.
Pressured by rising mortgage rates, mortgage application volume fell 8.7% for the week ending June 13, the Mortgage Bankers Association reported. For the week ending June 18, Freddie Mac said rates on 30-year mortgages continued climbing, reaching their highest level in nine months, reflecting more concerns about what the Federal Reserve will do to combat a growing inflation threat.
The number of newly laid-off workers seeking unemployment benefits for the week ending June 13 fell by 5,000 to 381,000, the Labor Department reported June 19. The biggest increases for jobless benefits came from California (10,778) and Florida (6,164).
Economic news due out this week includes reports on new home sales on June 25 and existing home sales on June 26.
Economic data compiled from government reports and news services Bloomberg.com, msnbc.com, cnbc.com, cnn.money.com and Yahoo Economic Calendar.
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Kristin Devlin
949.350.3771
Orange County Homes
