by Daniel Costello

Americans' wages and salaries made the largest gain in six months during November and spending rose strongly, according to data suggesting the economy might have sped up near the end of the year.

The Commerce Department said spending increased 0.5 percent after rising by 0.6 percent in October.

Personal saving was $525 billion in November, compared with $516 billion in October. Personal saving as a percentage of disposable personal income was 4.7 percent in November, the same as in October. Economists predict the savings rate will continue to climb, with many expecting savings to top out around 6-8 percent.

 

As 2009 winds down, mortgage applications in the U.S. fell last week for the first time in a month as purchases and refinancing weakened.

The Mortgage Bankers Association's index of loan applications decreased 11 percent to 595.8 the week ended Dec. 18, the lowest level since October, from 667.3 the prior week. The group's refinancing gauge dropped 10 percent, while purchases declined for a second consecutive week.

Mortgage rates are now near levels seen at this time last year, giving households less reason to lower monthly payments. But several reports in recent weeks, including strong existing homes sale data released Monday, point to an increasingly stabilized housing market.

Ford Motor Co. has reportedly finalized the details of the sale of its Volvo unit to China's Zhejiang Geely Holding Group and expects to finalize the agreement by the end of the first quarter of 2010.

Ford first said it would consider selling Volvo in December 2008 and named Geely as its preferred bidder in October.

For the first nine months of this year, Ford said, Volvo posted a pre-tax loss of $994 million compared with a loss of $787 million for the same period last year.