Economy Watch: Sales, Mortgage, Gas

ICSC Retail Sales Data

The International Council of Shopping Centers and Goldman Sachs reported its chain-store sales index for the week ending on August 27, 2011 posted a tiny increase of 0.1% from the previous week, breaking four consecutive weeks of decline.

For all of August, the ICSC chain store sales index rose by 4.6% based on year-over-year comparable-store sales, matching the July performance. Hurricane Irene's impact was mixed with BJs observing they got a hefty lift to its sales from customers stocking up ahead of the storm, while Macy's, JCP and other apparel retailers were negatively impacted. Overall, ICSC figured sales took a 0.5% to 1.0% hit from the storm.

Mortgage Rates

Bankrate.com reported that the average conforming 30-year fixed mortgage rate fell to 4.37% from last week's 4.41%, according to its weekly national survey ending August 31, 2011. This is the lowest rate since Bankrate started its weekly mortgage survey in September 1985. It also reported that the average 15-year fixed mortgage rate fell to 3.48% from 3.63% last week. The Mortgage Bankers Association reported mortgage applications were down 9.6% compared to the week earlier, with 77.8% of mortgage loans going toward refinancing rather than home purchases.

Gas Prices

The Energy Department announced that for week ending August 29, 2011, the average price of US gasoline rose to $3.627 a gallon from $3.581 per gallon week earlier.

Diesel prices fell to $3.82 from $3.81 last week.

Gas consumption for the first six months of 2011 fell 2% from the same period in 2010, as gas prices hit and surpassed $4 per gallon.