Uncategorized Archives - Rodeo Realty

January 18, 2025

Economic Update | Week Ending January 18, 2025

Inflation continued to rise in December – The Consumer Price Index (CPI) showed that consumer prices increased 2.9% year-over-year December, its third straight month of year-over-year increases, and its highest level in five months. The CPI peaked at 9.1% in June 2022 and worked its way down to a 2.4% year-over-year increase in September but has increased every month since its September low. Core CPI, which excludes volatile food and energy costs, rose 3.2% year-over-year in December, down from 3.3% in November. The Produce Price Index (PPI) showed that wholesale prices increased 3.3% year-over-year in December, up from a 3% year-over-year increase in November. Core PPI increased 3.5% year-over-year in December, up from 3.3% in November. Mortgage rates and bond yields increased early in the week but ended the week lower than they were on Wednesday as experts had forecasted inflation to rise even more than it did.

Below is a chart of the CPI rate from 2021

Stock markets – The Dow Jones Industrial Average closed the week at 43,478.83, up 3.7% from 41,938.45 last week. It is up 2.2% year-to-date. The S&P 500 closed the week at 5,996.96, up 2.9% from 5,827.04 last week. The S&P is up 2% year-to-date. The Nasdaq closed the week at 19,630.20, up 2.4% from19,161.63 last week. It is up 1.7% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.61%, down from 4.77% last week. The 30-year treasury bond yield ended the week at 4.84%, down from 4.96% last week. We watch bond yields because mortgage rates follow bond yields.

Mortgage rates – Every Thursday Freddie Mac publishes interest rates based on a survey of mortgage lenders throughout the week. The Freddie Mac Primary Mortgage Survey reported that mortgage rates for the most popular loan products as of January 16, 2025, were as follows: The 30-year fixed mortgage rate was 7.04%, up from 6.93% last week. The 15-year fixed was 6.27%, up from 6.14% last week.

The graph below shows the trajectory of mortgage rates over the past year.

For those of you that are displaced by the recent fires, we are so sorry to see you going through this situation. We had the opportunity to tour the devastation. It is beyond belief. As we wait to re-enter our properties and learn to live in our communities devastated by fire, we are all bracing ourselves for the uncertainty ahead. The rebuilding process will be complicated and painful, but someday down the line, our area will be new and pristine. While our hearts are broken by what we have experienced we are here for those in need. Our Realtors have and will continue to work 24/7 to help people find shelter. Even our Realtors who have lost their homes, our Palisades office, all their belongings, etc. are working tirelessly to find housing for their friends and neighbors. We commit to being around for anything that you need. If you need help with finding resources, FEMA, SBA, understanding your insurance coverage, housing, food clothing, etc. reach out to me. We have resources at Rodeo Realty to help you. You do not have to be a client. We are here to help anybody in need.

Please stay safe!

January 16, 2025

Mortgage Rate Update | January 16, 2025

Mortgage rates – Every Thursday Freddie Mac publishes interest rates based on a survey of mortgage lenders throughout the week. The Freddie Mac Primary Mortgage Survey reported that mortgage rates for the most popular loan products as of January 16, 2025, were as follows:

The 30-year fixed mortgage rate was 7.04%, up from 6.93% last week. The 15-year fixed was 6.27%, up from 6.14% last week.

The graph below shows the trajectory of mortgage rates over the past year.

Freddie Mac was chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing. Their mandate is to provide liquidity, stability, and affordability to the U.S.

January 11, 2025January 11, 2025

Economic Update | Week Ending January 11, 2025

Before I begin this week’s update, I want to express my sympathies to everyone living through the fires. I am devastated by the destruction, pain and sorrow these fires have caused. I have lived in Los Angeles my entire life. I have never seen anything like this before and hope I never will again. The loss of homes, businesses, schools, markets, restaurants, stores, etc. is horrific. At present there are over 10,000 homes lost just in Los Angeles County, and tens of thousands more people are displaced waiting in limbo wondering about the status of their homes and when and how they will ever return. Our prayers are with the victims and residents of The Palisades, Malibu, Pasadena, Altadena, Sylmar, and other communities. Everyone here at Rodeo Realty and myself have you all in our thoughts and prayers.

Our Rodeo Realty family and I have been extremely fortunate to have assisted the community with their housing needs since 1986. Our clients have enriched our lives in so many ways. There are really no words strong enough to express how grateful we are to you for your support. We understand our role in your lives, and it is an obligation we take seriously and will always be here for you to help you in every way possible. We have spent the week scrambling to find housing for those affected and helping people understand their insurance coverage, the process of what is to come and other housing needs. This will be our role for quite some time, so do not hesitate to reach out to us.

I also want to acknowledge our Realtors and staff that have lost their homes, the Rodeo Realty office that they work in, and nearly everything they own and have still shown up to our other offices every day to take care of their friends, relatives, clients, and anyone in need.

- - - - Syd Leibovitch, President Rodeo Realty Inc.

U.S. Hiring Surge in December – Employers add a quarter million new jobs in December -The Department of Labor and Statistics reported that 256,000 new jobs were added in December. It blew away economists who were surveyed by Dow Jones who forecasted 155,000 new jobs. The unemployment rate remained at 4.1%. Average hourly wages increased 3.9% year-over-year in December, over one percent above the current rate of inflation.

Stock markets – The Dow Jones Industrial Average closed the week at 41,938.45, down 1.8% from 42,722.13 last week. It is down 1.4% year-to-date. The S&P 500 closed the week at 5,827.04, down 1.9% from 5,942.47 last week. The S&P is down 0.9% year-to-date. Nasdaq closed the week at 19,161.63, down 2.3% from 19,622.05 last week. It is down 0.8% year-to-date.

Why are mortgage rates rising? In this environment where higher inflation leads to higher interest rates, good news becomes bad news for mortgage rates and bond yields. Mortgage rates and long-term bond yields increased to their highest levels in over a year this week. The better the economy, the more consumers spend. More people spending pushes prices higher and creates inflation. Inflation had dropped steadily and last September it was at its lowest levels since 2021 and the unemployment rate had risen to its highest levels in many years, but the inflation rate has increased for three straight months and the unemployment rate has dropped from where it was in September. It is good news that the economy is gaining strength and growing, but more people working, and wages rising is causing inflation to tick up.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.77%, up from 4.60% last week. The 30-year treasury bond yield ended the week at 4.96%, up from 4.82% last week. We watch bond yields because mortgage rates follow bond yields.

Mortgage rates – Every Thursday Freddie Mac publishes interest rates based on a survey of mortgage lenders throughout the week. The Freddie Mac Primary Mortgage Survey reported that mortgage rates for the most popular loan products as of January 9, 2025, were as follows: The 30-year fixed mortgage rate was 6.93%, up slightly from 6.91% last week. The 15-year fixed was 6.14%, up from 6.13% last week.

The graph below shows the trajectory of mortgage rates over the past year.

Please stay safe!

January 11, 2025January 17, 2025

California Wildfire Resources and Support

A Message from Syd Leibovitch, President of Rodeo Realty:

“The devastation caused by these fires is unimaginable. The loss of homes, businesses, and cherished spaces is a tragedy that impacts us all deeply. Many of our agents and employees, particularly in the Palisades, Malibu, Pasadena, and surrounding areas, have been directly affected. Our hearts are with all the victims and communities facing this crisis. At Rodeo Realty, we stand with you, offering our support and keeping you in our thoughts and prayers during this challenging time.”

– Syd Leibovitch, President Rodeo Realty Inc.

Emergency Contacts:

911 for life-threatening emergencies
Call 211 or go to 211la.org for shelter information
Go to lacounty.gov/recovery for shelter information
Mental Health Support: LA County Department of Mental Health 1-800-854-7771
Mental Health 1-800-854-7771 Financial Aid: Go to disasterassistance.gov or caloes.ca.gov

Stay Safe from Poor Air Quality:

Use N95 masks outdoors
Avoid outdoor activities; keep windows closed
Be ready to comply with any emergency orders or alerts

Ways you can Help:

Donate to: Los Angeles Fire Department Foundation https://supportlafd.kindful.com
Red Cross https://www.redcross.org/donate/donation
California Fire Foundation https://cpf.salsalabs.org/cff-donation/index.html

Together, We Will Overcome:

As we begin the journey to rebuild together, we want to remind you that help is always within reach. Please share this post with anyone who may need additional resources or information. Our Rodeo Realty agents have been fully informed and are here to answer any questions or provide guidance during this difficult time. At Rodeo Realty, we are committed to supporting our communities in every way we can. Together, we will overcome this challenge with strength and resilience.

January 9, 2025

Mortgage Rate Update | January 9, 2025

The 30-year fixed mortgage rate was 6.93%, up from 6.91% last week. The 15-year fixed was 6.14%, up from 6.13% last week.

The graph below shows the trajectory of mortgage rates over the past year.

January 6, 2025January 7, 2025

What is Transitional Style | Home Tips

Transitional style is a popular interior design style that combines traditional and contemporary elements. It’s characterized by clean lines, neutral colors, and a mix of textures and materials. This style is ideal for those who want a sophisticated and elegant look in their home while still maintaining a modern feel.

Here are a few key elements of transitional style interior decorating:

Neutral color palette:

Transitional style is known for its neutral color palette, which usually consists of whites, beiges, grays, and taupes. This provides a blank canvas for accent pieces and helps create a calm and serene atmosphere.

Clean lines:

Transitional design features clean lines, simple shapes, and minimal ornamentation. This gives the room a sophisticated and modern feel while also allowing the accent pieces to shine.

Mix of materials:

Transitional style is all about mixing materials and textures. Wood, glass, metal, and stone are all common elements in this design style. The goal is to create a harmonious blend of materials that complement each other.

Accent pieces:

Transitional style is meant to be a canvas for accent pieces, such as artwork, rugs, and lighting. These pieces can add a pop of color, texture, and interest to the space.

Functional furniture:

Transitional style is about practicality and functionality. Furniture pieces should serve a purpose and be comfortable while also fitting in with the overall aesthetic.

How to use Transitional Style in your home design:

Start with a neutral palette: Use a neutral color scheme as the base for your interior design and add pops of color through accent pieces.
Mix materials: Mix and match materials such as wood, glass, metal, and stone to create texture and interest in the space.
Emphasize clean lines: Focus on clean lines and minimal ornamentation to create a modern feel.
Balance traditional and modern elements: Mix traditional pieces, such as a leather sofa, with modern accents, such as a contemporary rug.
Add accent pieces: Use accent pieces like artwork, rugs, and lighting to add color, texture, and interest to the space.
Focus on functionality: Choose furniture pieces that are functional and comfortable while also fitting in with the overall aesthetic.
Keep the space clutter-free: Transitional style emphasizes clean lines and minimalism, so keep the space free of clutter for a sophisticated and elegant look.
Play with scale: Incorporate pieces of varying scales, such as large art or a statement light fixture, to add visual interest.
Experiment with patterns: Use patterns, such as stripes or chevron, in small doses to add texture and interest.

In conclusion, Transitional style is a beautiful blend of traditional and contemporary elements, creating a sophisticated and timeless look in your home. Whether you’re starting from scratch or just looking to update your current space, incorporating these elements into your design can result in a stylish and functional space.

January 3, 2025January 4, 2025

Economic Update | Week Ending January 4, 2025

It was a quiet holiday-shortened week. Jobless claims fell to their lowest levels since March, another sign that the economy is heating up. Next Friday the Labor Department will release the December jobs report. Investors are waiting for that in hopes that hiring was not as strong in December as it was in November. More jobs available than workers looking for jobs pushes wages up which fuels consumer spending and increases the rate of inflation.

Stock markets – The Dow Jones Industrial Average closed the week at 42,722.13, down 0.6% from 42,992.21 last week. The S&P 500 closed the week at 5,942.47, down 0.5% from 5,970.84 last week. The Nasdaq closed the week at 19,622.05, down 0.5% from 19,722.02 last week.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.60%, almost unchanged from 4.62% last week. The 30-year treasury bond yield ended the week at 4.82%, unchanged from 4.82% last week. We watch bond yields because mortgage rates follow bond yields.

Mortgage rates – Every Thursday Freddie Mac publishes interest rates based on a survey of mortgage lenders throughout the week. The Freddie Mac Primary Mortgage Survey reported that mortgage rates for the most popular loan products as of January 2, 2025, were as follows: The 30-year fixed mortgage rate was 6.91%, up from 6.85% last week. The 15-year fixed was 6.13%, up from 6% last week.

The graph below shows the trajectory of mortgage rates over the past year.

Economic Update for the Year Ending
December 31, 2024

Stocks surged, inflation moderated, and mortgage rates remained high in 2024

The Fed dropped their key interest rates by 1% in 2024 – The Fed began raising their key interest rates in 2022. They had increased rates to a 24-year high to combat inflation before a ½% drop in September, a ¼% drop in November, and a ¼% drop in December. Federal Reserve Chairman Powell said at the end of the year that he only expects two additional rate drops in 2025 and that rates would remain above “neutral levels” for the foreseeable future because inflation has picked up since hitting a 3-year low in September. He also said that the economy and job market were stronger than expected and that the Fed does not expect inflation to drop to its 2% annual rate target until 2026. The Consumer Price Index (CPI) showed that consumer prices increased 2.7% year-over-year in November, up from a 2.6% year-over-year increase in October. The CPI peaked at 9.1% in June 2022 and has worked its way down to a 2.4% year-over-year increase in September but has ticked up the last two months. We are well below the CPI rate of 3.4% in December 2023, so we have moved in the right direction. Core CPI, which excludes volatile food and energy costs rose 3.3% year-over-year in November for the fourth consecutive month. That is down from 3.9% in December 2023. The Personal Consumption Expenditures Index (PCE), the Fed’s preferred measure of inflation, showed that consumer prices rose 2.4% in November from one year ago. Excluding food and energy Core PCE increased 2.8% year-over-year.

The graph below shows the CPI rate since 2021

Stocks surged and Stock markets hit record highs in 2024 – All three indexes hit record highs in 2024 but closed the year off their record highs after the Fed announced that they were concerned that inflation had heated up and they were going to stall rate drops in 2025. The Dow Jones Industrial Average ended the year at 42,544.72, up 12.9% from 37,689.40 on December 31, 2023. The S&P 500 closed the year at 5,881.63, up 23.3% from 4,769.89 on December 31, 2023. The NASDAQ closed at 19,310.79, up 28.6% from 15,011.35 at the end of 2023.

U.S. Treasury Bond Yields increased in 2024 – Bond yields increased in the first six months of the year. As the inflation rates dropped to their lowest levels since 2021 in September bond yields also dropped to their lowest levels of the year but increased in November and December to end the year higher than where they began the year. While the inflation rate is lower than it was a year ago the amount of the national debt has made treasury bonds less attractive and has pushed up rates. The 10-year U.S. treasury bond yield closed the year at 4.58%, up from 3.88% On December 31, 2023. The 30-year treasury yield ended the year at 4.78%, up from 4.03% on Dec. 31, 2023. We watch bond yields because mortgage rates often follow treasury bond yields.

Mortgage rates – Mortgage rates began the year with the 30-year at 6.61%, by September it dropped to 6% but increased to end the year to 6.85%. Many people have asked, “Why have mortgage rates increased if the Fed has lowered rates by 1%?” That is an interesting question. The Fed controls overnight rates that banks pay to borrow money overnight from the Federal Reserve. That is the shortest-term rate. When overnight rates drop, banks drop their “prime” lending rate which is offered to their best customers. The prime rate is a common index for lines of credit. Those did drop 1%. Mortgages are long-term rates. Investors try to forecast inflation over a long period when purchasing mortgages. They need a spread over the inflation rate that they forecast. With the economy picking up steam, more jobs available than workers looking for work, and consumer spending higher long-term risk of inflation is higher. Every Thursday Freddie Mac publishes interest rates based on a survey of mortgage lenders throughout the week. The Freddie Mac Primary Mortgage Survey reported that mortgage rates for the most popular loan products as of December 26th, 2024, were as follows: The 30-year fixed mortgage rate was 6.85%, up from 6.61% on December 28, 2023. The 15-year fixed was 6%, up from 5.93% on December 28, 2023.

The graph below shows the trajectory of mortgage rates over the past year.

Home sales data is released on the third week of the month for the previous month by the California Association of Realtors and the National Association of Realtors. These are November’s home sales figures.

U.S. existing-home sales November 2024 – National home prices rose about 5% in 2024 – The National Association of Realtors reported that existing-home sales totaled 4.15 million units on a seasonally annualized rate in November, up 4.8% from 3.96 million units on a seasonally adjusted annualized rate in October, and up 6.1% from an annualized rate of 3.91-million units last November. The median price for a home sold in the U.S. in November was $406,100, up 4.7% from $387,800 one year ago. There was a 3.8-month supply of homes for sale in November, down from a 4.2-month supply in October, and up from a 3.5-month supply one year ago. First-time buyers accounted for 30% of all sales. Investors and second-home purchases accounted for 13% of all sales. All cash purchases accounted for 25% of all sales. Foreclosures and short sales accounted for 2% of all sales.

California existing-home sales – Housing prices rose about 4% in 2024 – The California Association of Realtors reported that existing-home sales totaled 267,800 on an annualized basis in November, up 1.1% from 264,870 on an annualized basis in October, and up 19.5% from a revised 224,140 homes sold on an annualized basis last November. The statewide median price paid for a home was $852,880 in November, down 4% from $888,740 in October, and up 3.8% from $821,710 one year ago. There was a 3.3-month supply of homes for sale in November, up from a 2.9-month supply in November 2023.

The graph below lists home sales data by county in Southern California.

January 2, 2025January 9, 2025

Mortgage Rate Update | January 2, 2025

The 30-year fixed mortgage rate was 6.91%, up from 6.85% last week. The 15-year fixed was 6.13%, up from 6% last week.

The graph below shows the trajectory of mortgage rates over the past year.

December 31, 2024December 31, 2024

Economic Update | Month Ending December 31, 2024

Stocks surged, inflation moderated, and mortgage rates remained high in 2024

The Fed dropped their key interest rates by 1% in 2024 – The Fed began raising their key interest rates in 2022. They had increased rates to a 24-year high to combat inflation before a ½% drop in September, a ¼% drop in November, and a ¼% drop in December. Federal Reserve Chairman Powell said at the end of the year that he only expects two additional rate drops in 2025 and that rates would remain above “neutral levels” for the foreseeable future because inflation has picked up since hitting a 3-year low in September. He also said that the economy and job market were stronger than expected and that the Fed does not expect inflation to drop to its 2% annual rate target until 2026. The Consumer Price Index (CPI) showed that consumer prices increased 2.7% year-over-year in November, up from a 2.6% year-over-year increase in October. The CPI peaked at 9.1% in June 2022 and has worked its way down to a 2.4% year-over-year increase in September but has ticked up the last two months. We are well below the CPI rate of 3.4% in December 2023, so we have moved in the right direction. Core CPI,which excludes volatile food and energy costs rose 3.3% year-over-year in November for the fourth consecutive month. That is down from 3.9% in December 2023. The Personal Consumption Expenditures Index (PCE), the Fed’s preferred measure of inflation, showed that consumer prices rose 2.4% in November from one year ago. Excluding food and energy Core PCE increased 2.8% year-over-year.

The graph below shows the CPI rate since 2021:

Stocks surged and Stock markets hit record highs in 2024 – All three indexes hit record highs in 2024 but closed the year off their record highs after the Fed announced that they were concerned that inflation had heated up and they were going to stall rate drops in 2025. The DowJones Industrial Average ended the year at 42,544.72, up 12.9% from 37,689.40 on December 31, 2023. The S&P 500 closed the year at 5,881.63, up 23.3% from 4,769.89 on December 31, 2023. The NASDAQ closed at 19,310.79, up 28.6% from 15,011.35 at the end of 2023.

U.S. Treasury Bond Yields increased in 2024 – Bond yields increased in the first six months of the year. As the inflation ratesdropped to their lowest levels since 2021 in September bond yields also dropped to their lowest levels of the year but increased in November and December to end the year higher than where they began the year. While the inflation rate is lower than it was a year ago the amount of the national debt has made treasury bonds less attractive and has pushed up rates. The 10-year U.S. treasury bond yield closed the year at 4.58%, up from 3.88% On December 31, 2023. The 30-year treasury yield ended the year at 4.78%, up from 4.03% on Dec. 31, 2023. We watch bond yields because mortgage rates often follow treasury bond yields.

The graph below shows the trajectory of mortgage rates over the past year:

U.S. existing-home sales November 2024 – National home prices rose about 5% in 2024 – The National Association of Realtors reported that existing-home sales totaled 4.15 million units on a seasonally annualized rate in November, up 4.8% from 3.96 million units on a seasonally adjusted annualized rate in October, and up 6.1% from an annualized rate of 3.91-million units last November. The median price for a home sold in the U.S. in November was $406,100, up 4.7% from $387,800 one year ago. There was a 3.8-month supply of homes for sale in November, down from a 4.2-month supply in October, and up from a 3.5-month supply one year ago. First-time buyers accountedfor 30% of all sales. Investors and second-home purchases accounted for 13% of all sales. All cash purchases accounted for 25% of all sales. Foreclosures and short sales accounted for 2% of all sales.

California existing-home sales – Housing prices rose about 4% in 2024 – The California Association of Realtors reported that existing-home sales totaled 267,800on an annualized basis in November, up 1.1% from 264,870 on an annualized basis in October, and up 19.5% from a revised 224,140 homes sold on an annualized basis last November. The statewide median price paid for a home was $852,880 in November, down 4% from $888,740 in October, and up 3.8% from $821,710 one year ago. There was a 3.3-month supply of homes for sale in November, up from a 2.9-month supply in November 2023.

The graph below lists home sales data by county in Southern California:

December 27, 2024December 28, 2024

Economic Update | Week Ending December 28, 2024

Economic news this week – Stock markets inched higher in a holiday-shortened week, making up some of last week’s losses. Mortgage interest rates and treasury bond yields increased further this week. They are now at their highest levels since July. It looks like they will end the year higher than at the start of the year. Experts still expect them to drop next year, but not as quickly as they thought they would drop just a few weeks ago, as inflation and the economy have shown signs of heating up.

Stock markets – The Dow Jones Industrial Average closed the week at 42,992.21, up 0.4% from 42,840.26 last week. It is up 14.1% year-to-date. The S&P 500 closed the week at 5,970.84, up 0.7% from 5,930.55 last week. The S&P is up 25.2% year-to-date. The Nasdaq closed the week at 19,722.02, up 1% from19,572.60 last week. It is up 31.4% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.62%, up from 4.52% last week. The 30-year treasury bond yield ended the week at 4.82%, up from 4.72% last week. We watch bond yields because mortgage rates follow bond yields.

Mortgage rates – Every Thursday Freddie Mac publishes interest rates based on a survey of mortgage lenders throughout the week. The Freddie Mac Primary Mortgage Survey reported that mortgage rates for the most popular loan products as of December 26th, 2024, were as follows: The 30-year fixed mortgage rate was 6.85%, up from 6.72% last week. The 15-year fixed was 6%, up from 5.92% last week.

The graph below shows the trajectory of mortgage rates over the past year.

Happy New Year!