Economic Update | Week Ending March 16, 2024

! Weekly Economic Update
Both the CPI (Consumer Price Index) and the PPI (Producer Price Index) showed that consumer prices and wholesale prices jumped more than expected in February. It was widely thought that inflation would continue to drop in 2024, but that was not the case in February. This drove up home mortgage rates to about 7%. They were almost at 8% in October and worked their way down to 6.5% by the start of the year, but have increased on strong economic news which included a jump in hiring, strong consumer spending, corporate profits above what was estimated, and the inflation rate ticking up. For investors it is not a matter of if the Fed will drop rates below their 24-year highs, it’s a matter of when they will begin dropping rates. Unfortunately, the stronger the economy the longer the Fed will wait to begin rate reductions. It seems strange to hope for bad economic news but that’s what it will take to curb inflation which will allow the Fed to reduce rates.

Stock markets – The Dow Jones Industrial Average closed the week at 38,714.77, almost unchanged from 38,722.69 last week. It is up 3.7% year-to-date. The S&P 500 closed the week at 5,117.09, down 0.1% from 5,123.69 last week. The S&P is up 7.7% year-to-date. The Nasdaq closed the week at 15,973.17, down 0.1% from 16,085.11 last week. It is up 8.4% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.31%, up from 4.09% last week. The 30-year treasury bond yield ended the week at 4.43% up from 4.26% 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 March 14, 2024, were as follows: The 30-year fixed mortgage rate was 6.74%, down from 6.88% last week. The 15-year fixed was 6.16%, down from 6.22% last week. Unfortunately, rates rose at the end of the week as higher inflation data was released.

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.

Home sales data for February will be released next week by the National Association of Realtors and the California Association of Realtors. We have that data tabulated now and you can view that data for your city or zip code at RodeoRe.com.

Have a great weekend!

Mortgage Rate Update | March 14, 2024

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 March 14, 2024, were as follows: The 30-year fixed mortgage rate was 6.74%, down from 6.88% last week. The 15-year fixed was 6.16%, down from 6.22% 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.

Economic Update | Week Ending March 9, 2024

Economic news this week centered around hiring, jobs, and Tech stocks. The job market remained hot, but not as hot as it appeared last month. Tech stocks that have had a giant rally this year gave up some ground this week. There was really no news that led to a slight sell-off except for Investors taking profits. Perhaps they feel that the sector has been overbought. Next week the Consumer Price Index will be released. With the Fed looking mainly at the tight labor market as inflationary, investors are waiting to see if the inflation rate will continue to tick down. The lower the inflation level and the higher the unemployment rate, the sooner the Fed will begin lowering interest rates from their 24-year high.

February hiring points to another robust month of job growth, while a downward January revision indicates that the job market is not as “red hot” as it appeared a month ago. – The Department of Labor and Statistics reported that 275,000 new jobs were added in February. That was higher than the 200,000 new jobs that analysts expected, and it marked the third straight month with job gains above 200,000 and the 38th consecutive month of job growth. January’s new jobs number was adjusted downward from 353,000 new jobs to 229,000. That was much closer to the 175,000 experts expected in January. The Department of Labor gave no explanation for such a large difference between the initial number and the revised number. The unemployment rate rose to 3.9% in February, up from 3.7% in January. While that is the highest unemployment rate in two years, unemployment is still at a level not seen since the 1960s. The Fed is looking to get the unemployment rate to the low to mid 4% range. With employers struggling to find workers, wage gains are outpacing the inflation rate. That leads to higher consumer spending which fuels inflation. Average hourly wages increased 4.3% year-over-year in February, down from 4.5% in January. Economists expected a 4.4% increase. Bond yields and mortgage rates ended the week lower. Investors and experts reported that they now feel that a rate drop by the Fed could be sooner than they thought a month ago due to the January revision, the rise in unemployment, and the slight year-over-year drop in wages.

Stock markets – The Dow Jones Industrial Average closed the week at 38,722.69, down 0.9% from 39,087.38 last week. It is up 3.7% year-to-date. The S&P 500 closed the week at 5,123.69, down 0.3% from 5,137.08 last week. The S&P is up 7.7% year-to-date. The Nasdaq closed the week at 16,085.11, down 1.2% from 16,274.94 last week. It is up 8.4% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.09%, down from 4.19% last week. The 30-year treasury bond yield ended the week at 4.26%, down from 4.33% 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 March 7, 2024, were as follows: The 30-year fixed mortgage rate was 6.88%, down from 6.94% last week. The 15-year fixed was 6.22%, down from 6.26% 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.

Have a great weekend!
Remember that the time moves one hour forward at 2 AM on Sunday!

Mortgage Rate Update | March 7, 2024

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 March 7, 2024, were as follows: The 30-year fixed mortgage rate was 6.88%, down from 6.94% last week. The 15-year fixed was 6.22%, down from 6.26% 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.

From Adobe AI to Nikon Acquisitions and More! | Tech News

Stay connected with this week’s leading tech news headlines, from Adobe AI to Nikon Acquisitions and more! Our weekly round-up of what’s happening from across the web provides a bite-size version of the week’s news. Read on for the latest tech news!

Apple Aims to Simplify Transition from iPhone to Android Due to EU Regulations

Apple is set to introduce changes for EU-based iPhone users to align with the European Union’s new Digital Markets Act, aiming to facilitate the uninstallation of its Safari browser by late 2024 and enhance the process of transferring data to non-Apple phones by fall 2025. A compliance document from Apple highlights efforts to comply with the EU regulations, including a browser switching solution and the ability to select alternative default navigation apps by March 2025. While it remains unclear if these changes will apply globally, Apple’s initiative reflects an effort to develop more user-friendly data transfer solutions, potentially addressing gaps in current transfer tools like Google’s “Switch to Android” app, which does not support the migration of certain data types.

Adobe Introduces Generative AI Capabilities of Firefly in the Latest Express Mobile Application

Adobe has unveiled a new Adobe Express app for mobile devices, extending the creative, editing, and Firefly-powered generative AI functionalities of its desktop version to iOS and Android users. Available in beta, this app offers free access to features like generative fill and text-to-image effects, enabling users to create social media posts, posters, and website banners, with the added advantage for Creative Cloud members to access and edit Photoshop and Illustrator files directly on their mobile devices. While the app is currently free, Adobe plans to transition its premium features to a subscription model post-beta. The beta version promotes collaborative workflows across devices, though not all smartphones are supported, and iOS users face beta access restrictions. This mobile integration of Firefly AI positions Adobe Express competitively against platforms like Canva, offering a consolidated design solution on mobile platforms.

Nikon to Purchase American Camera Maker RED

Nikon is set to acquire RED Digital Cinema, a leading digital cinema camera manufacturer. While financial details remain undisclosed, the acquisition will see RED becoming a fully integrated subsidiary under Nikon. This strategic move aims to bolster Nikon’s presence in the professional digital cinema market, leveraging RED’s advanced cinema camera technology, including its unique image compression and color science. RED’s impressive portfolio, featuring work on major Marvel films, acclaimed nature documentaries, and popular TV shows, underscores the brand’s industry impact. RED, founded in 2005 with about 220 employees and based in Foothill Ranch, California, also made a brief foray into the smartphone sector in 2018 with the RED Hydrogen One.

Target to Introduce Unlimited Expedited Shipping Service, Competing with Amazon Prime

Target is rolling out Target Circle 360, a subscription service priced at $99 per year. The service also offers free, unlimited delivery and expedited shipping on online orders. Target’s service is set to launch on April 7, with an early bird price of $49 until May 18. The service also provides free two-day shipping and same-day delivery for orders over $35. Target Circle 360 is essentially an enhancement and rebranding of existing services. Subscribers will also gain access to the Shipt Marketplace for free delivery from additional stores. 

Meta Details Integration of WhatsApp’s Encrypted Conversations with External Services

With the EU’s Digital Markets Act (DMA) now in effect, Meta is outlining how WhatsApp and Messenger will maintain end-to-end encryption. Likewise, they are also seeking to ensure interoperability with third-party chat services as mandated. Although Meta is required to prepare for service interoperability within three months of a request, actual public deployment may take longer. Initially, this interoperability will support individual chats and file sharing. In addition, the plans to extend to group chats and calls. Third-party services must agree to certain conditions. 

Meta Introduces ‘Lying Down Mode’ for Quest 2 and Pro VR Headsets

The latest v63 software update for Meta’s Quest 2 and Pro VR headsets introduces a “lying down mode.” The feature enables users to comfortably use their headsets while reclining. Of course, the feature’s comeback is celebrated for enhancing accessibility. Activation is simple via the Experimental Settings in the headset menu. The update also launches Quest Cash, a payment system for the Meta Quest store. There’s no confirmation yet on whether the anticipated Quest 3 headsets will feature this accessibility option.

Dog-Friendly Hikes In Los Angeles | Out & About

Living in Los Angeles can be a hectic affair, especially for your pet. Likewise, they are very likely to be appreciative of more walk time in a beautiful and relaxing natural setting. Unfortunately, not all parks and natural areas in Los Angeles are welcoming to pets. That’s why we have compiled this list of some of the most popular dog-friendly hikes in the Los Angeles area. The bonus? They are all within driving distance of the city.

Runyon Canyon Park

    • One of the area’s most beloved dog-friendly hikes, Runyon Canyon boasts three different trails. Likewise, they consist of different lengths and elevation changes. There are plenty of areas in its 130-acre surface where your pet can run free and enjoy the natural environment. In addition, you can take in some of the most wonderful views of Hollywood. Start at Mulholland Drive and continue on to the east end of the Santa Monica Mountains in Hollywood. Keep in mind this is a very popular park so there will be plenty of other hikers and their dogs in the area.
Westridge Trail to San Vicente Mountain

    • Another one of several off-leash, dog-friendly hikes in the Los Angeles area, is the Westridge Fire Road. The trail is well known among local hikers, mountain bike riders, and nature lovers in the Brentwood area. Its 7.4-mile trail will lead you to an abandoned cold-war era defensive missile site where you can soak in the history of the place. Likewise, you can enjoy the vast scenery of the San Vicente Mountains. From there you will come upon the old lookout tower while your dog gets some enjoyable runs along the trail.
Amir’s Garden

    • A delightful one-mile hike leads you straight to a beautiful garden in Griffith Park where you can sit back and relax in two of the most amazing picnic areas you will ever find, one at the Old Zoo and the other in the garden itself, which boasts picnic tables and different varieties of foliage and greenery, making it one of the most pleasant dog-friendly hikes in Los Angeles.
Fish Canyon Narrows

    • Nestled in the Sierra Pelona Mountains on the Far West End of Los Angeles, this beautiful 10-mile trail offers views usually similar to those you can find in Utah. With 100-foot cliffs built out of eye-pleasing red rock and set only 20 feet apart, you and your pet can enjoy an adventure that features bushwacking and exploring the trail while taking in the beautiful view of Castaic Lake. The entrance can be found on Templin Highway and its remoteness lends to a more private experience.
Bridge To Nowhere

    • Another 10-mile adventure, this uniquely historic trail will lead you to an abandoned bridge that is considered to be a local treasure. With a number of fords along the way, this trail offers a variety of opportunities for swimming on a hot day, so keep in mind you will need at least 6 hours to complete the trip. Located in the East Fork of the San Gabriel River, it is suggested you bring plenty of water and a change of shoes for your hike.

Los Angeles offers a numerous selection of dog-friendly hikes that are open year-round, but, given the fact that most of these run through the wilderness and unpopulated areas, you make encounter rattlesnakes along the way, so keep an eye open for you and your pet’s safety.

 

Economic Update | Week Ending March 2, 2024

Next Friday the Department of Labor and Statistics will release the February jobs report. Investors are eagerly awaiting what those numbers will look like. The Fed has stated that slowing job growth is their number one priority to combat inflation. It looked like job growth was slowing last year, but January’s job gains were double the amount expected. People ask, “why would the Fed want the unemployment rate to rise?” My best answer is, do you know a restaurant that’s having trouble staying open, or an accountant, attorney, or any business that they can’t find help? We have been at the lowest unemployment rate since the 1960’s for almost two years. That shortage of labor has wages rising at a much higher rate than the inflation target level. When people make more, they spend more. More competition for goods drives prices up. The Fed’s goal is to get the labor market more balanced. Having more jobs than applicants is not a sustainable labor market. After last month’s surging job growth mortgage rates increased and the Fed’s likelihood of dropping rates from their 24-year high levels became more unlikely in the coming months. If job creation slows mortgage rates will drop and the Fed will be able to begin lowering rates.

Stock markets – The Dow Jones Industrial Average closed the week at 39,087.38, down 0.2% from 39,151.53 last week. It is up 3.7% year-to-date. The S&P 500 closed the week at 5,137.08, up 1% from 5,088.80 last week. The S&P is up 7.7% year-to-date. The Nasdaq closed the week at 16,274.94, up 1.7% from 15,996.82 last week. It is up 8.4% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.25%, almost unchanged from 4.26% last week. The 30-year treasury bond yield ended the week at 4.38%, almost unchanged from 4.37% 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 February 15, 2024, were as follows: The 30-year fixed mortgage rate was 6.94%, up from 6.90% last week. The 15-year fixed was 6.26%, down from 6.29% 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.

 

Have a great weekend!

Economic Update | Month Ending February 29, 2024

Key economic news in February – Stock prices soared with the Dow and S&P hitting record highs, and the Nasdaq made up most of last year’s losses. Recent reports show that the economy appears to be heating up. 353,000 net new jobs were added in January, nearly double the number that analysts expected. Corporate profits beat estimates almost across the board with tech stocks leading the way. Unfortunately, with the economy so strong the inflation level is not dropping as quickly as economists had hoped. The Consumer Price Index (CPI), which measures consumer prices rose 3.1% from one year ago. Experts had projected a 2.9% increase. The Producer Price Index (PPI) for January, which measures wholesale prices, increased 0.3% month-over-month, its largest increase since last August, and well above the 0.1% increase economists expected. Investors were very optimistic in December and January that the Fed would soon begin to drop their key interest rates from the current 23-year high levels but now feel that a rate drop is months away. Minutes from the latest Fed meeting confirmed that the Fed is in no rush to begin dropping rates. This drove bond yields and mortgage rates higher in February, but they are still well below their peak last October.

Stock Markets – The Dow Jones Industrial Average closed the month at 38,996.39, up 2.2% from 38,150.30 on January 31, 2023. It is up 3.5% year-to-date. The S&P 500 closed the month at 5,096.27, up 5.2% from 4,845.65 last month. It is up 6.9% year-to-date. The NASDAQ closed the month at 16,091.92, up 6.2% from 15,164.01 last month. It is up 7.2% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the month yielding 4.25%, up from 3.99% last month. The 30-year treasury bond yield ended the month at 4.38%, up from 4.22% last month. We watch bond yields because mortgage rates often follow treasury bond yields.

Mortgage rates – The Freddie Mac Primary Mortgage Survey reported that mortgage rates as of February 29, 2024, for the most popular loan products were as follows: The 30-year fixed mortgage rate was 6.94%, up from 6.69% at the end of January. The 15-year fixed was 6.26%, up from 5.96% at the end of January.

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 National Association of Realtors and the California Association of Realtors. These are January’s home sales figures.

U.S. existing-home sales – The National Association of Realtors reported that existing-home sales totaled 4.00 – million units on a seasonally adjusted annualized rate in January, down 4.8% from an annualized rate of 4.20 million in January 2023. The median price for a home in the U.S. in January was 379,100, up 5.1% from $360,800 last January. There was a 3.0-month supply of homes for sale in January, almost unchanged from a 2.9-month supply last January. First-time buyers accounted for 28% of all sales. Investors and second-home purchases accounted for 17% of all sales. All cash purchases accounted for 32% of all sales. Foreclosures and short sales accounted for 2% of all sales.

Lower mortgage rates in January were credited to an increase in home sales – The California Association of Realtors reported that existing-home sales totaled 256,160 in January, up 14.4% from 224,000 closed sales in December, and up 5.9% from a revised 241,920 homes sold on an annualized basis last January. There was a 3.2-month supply of homes on the market in January, up from a 2.5-month supply of homes in December, and down from a 3.5-month supply one year ago. The statewide median price paid for a home in January was $788,940, up 5% from a revised median price of $751,700 last January.

 

The graph below shows sales data by county in Southern California.

Mortgage Rate Update | February 29, 2024

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 February 29, 2024, were as follows: The 30-year fixed mortgage rate was 6.94%, up from 6.90% last week. The 15-year fixed was 6.26%, down from 6.29% 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.

Economic Update | Week Ending February 24, 2024

! Weekly Economic Update

The Dow and the S&P 500 closed the week at record highs – Tech stocks led the way with an impressive week, but all sectors were generally higher. The resilience in the economy has surprised investors who were expecting a slowdown one year ago and now see the economy continuing to expand. The Dow Jones Industrial Average closed the week at 39,151.53, up 1.4% from 38,627.99 last week. It is up 3.9% year-to-date. The S&P 500 closed the week at 5,088.80, up 1.7% from 5,005.57 last week. The S&P is up 6.7% year-to-date. The Nasdaq closed the week at 15,996.82, up 1.4% from 15,775.65 last week. It is up 6.6% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 4.26%, down from 4.30% last week. The 30-year treasury bond yield ended the week at 4.37%, down from 4.45% 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 February 15, 2024, were as follows: The 30-year fixed mortgage rate was 6.90%, up from 6.77% last week. The 15-year fixed was 6.29%, up from 6.12% 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.

U.S. existing-home sales – The National Association of Realtors reported that existing-home sales totaled 4 million units on a seasonally adjusted annualized rate in January, down 4.8% from an annualized rate of 4.2 million in January 2023. The median price for a home in the U.S. in January was 379,100, up 5.1% from $360,800 last January. There was a 3-month supply of homes for sale in January, almost unchanged from a 2.9-month supply last January. First-time buyers accounted for 28% of all sales. Investors and second-home purchases accounted for 17% of all sales. All cash purchases accounted for 32% of all sales. Foreclosures and short sales accounted for 2% of all sales.

Have a great weekend!