Category: Uncategorized

 

Stock markets dropped this week – Talks of a government shutdown, which were averted, and political uncertainty over the fate of the bipartisan infrastructure bill and a massive potential reconciliation bill dominated the news this week. Stock market indexes suffered their largest monthly losses in September since March of 2020. September is often a rocky month for stocks. We will see what October brings. Third quarter corporate profits will be released in the coming weeks, and it is expected that the fate of the infrastructure bill and the reconciliation “Build Better” bill should be sorted out one way or the other. Both of those bills contain massive spending which will stimulate the economy but would also add to inflationary pressures, and expand the debt. The reconciliation bill also raises taxes for corporations, investors, and families making over $400,000 a year. The Dow Jones Industrial Average closed the week at 34,326.46, down 1.4% from 34,798.00 last week. It is up 12.2% year-to-date. The S&P 500 closed the week at 4,357.04, down 2.2% from 4,455.48 last week. It is up 16.1% year-to-date. The NASDAQ closed the week at 14,566.70, down 3.2% from 15,047.70 last week. It is up 13.2% year-to-date. U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 1.48% up slightly from 1.47% last week. The 30-year treasury bond yield ended the week at 2.04%, up, from 1.99% last week. We watch bond yields because mortgage rates often follow treasury bond yields. Mortgage rates – The September 30, 2021, Freddie Mac Primary Mortgage Survey reported mortgage rates for the most popular loan products as follows: The 30-year fixed mortgage rate was 3.01% up from 2.88% last week. The 15-year fixed was 2.28% up from 2.15% last week. The 5-year ARM was 2.48% up from 2.43% last week. The September Jobs report will be released next Friday and included in next week’s update.

Stay current on the latest tech news from the iPhone 13 to Tesla’s Laser Windshield Wipers and more!

Robinhood Launches Slow and Steady Approach to Crypto Investing

If you happen to be a Robinhood user, we have good news for you. The popular investment trading app will soon roll out features to let you automatically invest in cryptocurrency. The automatic investments can be daily, weekly, or monthly. Users will be able to invest in notable cryptocurrencies like Bitcoin, Ethereum, Dogecoin, and other supported cryptocurrencies. Those seeking to invest are still advised to speak with an expert before investing. The approach from Robinhood would be for automatic investing, not trading, as it will not sell crypto for you. Instead, the feature helps to steadily build your crypto portfolio. The company has stated that the feature will be “gradually” rolling out to its users throughout the month.

Tesla’s Latest Patent Seeks to Use Lasers as Windshield Wipers

In unsurprising news, Tesla’s latest patent want’s to use lasers to clean your windshield. The US Patent and Trademark Office granted the boundary-pushing company its unique patent this week. Tesla’s latest venture seeks to use laser beams to clean the debris off a windshield, as well potentially other glass parts of the car. According to the patent, the laser beams would act as a cleaning apparatus for a vehicle”. The beam would consist of optics assembled to emit a laser beam that can irradiate a region on a glass article installed in the vehicle. The patent was filed in 2018, but there’s no clear timeline for when this tech concept may be seen at a vehicle charging station.

iPhone 13 and more to be Unveiled at Apple’s Sept 14 ‘California Streaming’ Event

Eager Apple fans will not have to wait too much longer for news on the next iPhone launch. Apple’s highly anticipated annual product unveiling will take place on Sept 14. Titled “California Streaming”, the event will be held virtually as a pandemic safety precaution. Expect to hear announcements on a new Apple Watch Series 7 with a revamped design, alongside the iPhone 13 (or potentially called the iPhone 12S). While iPhone can generally always expect a camera upgrade, whispers on the web are also expecting the capability to make emergency calls and text without cell service. Additional announcements expected at the event could also include new Mac computers with upgraded chips and new iPads. 

US government forms committee to advise on AI competitiveness

The US Department has formed a new committee to advise the federal government on AI research and development. Named The National Artificial Intelligence Advisory Committee, the new committee will focus on a range of issues related to AI. These issues will relate to AI systems in both the public and private sectors. “AI presents an enormous opportunity to tackle the biggest issues of our time, strengthen our technological competitiveness, and be an engine for growth in nearly every sector of the economy.” Secretary of Commerce Gina Raimondo said in a release. The secretary also added that the committee must be wise in facing the challenges of AI. The news of forming the committee comes as the U.S. seeks to regain its footing as the world tech leader. 

Amazon’s Cashierless Grocery Stores to Expand Out West

Sherman Oaks will be one of the first areas in the country to experience Amazon’s “Just Walk Out” tech at Whole Foods next year. The tech giant announced its cashier-less service will be expanding to Whole Food locations in Sherman Oaks and Washington DC. This news comes after Amazon tested the service at Amazon Go stores in the year prior. Store patrons will be able to op into the service as they enter one of the stores. Old-fashioned payment options will also still be available at a self-checkout lane or the customer service booth. The company stated that they will maintain “a comparable number” of workers to existing Whole Food locations of similar sizes. 

The Gmail App Will Now Let Users Make a Call

If you’ve ever wanted to make a call from your Gmail account, you now can. Google has announced additional Workspace features this week. The redesign will allow the company to be a central hub for all of Google’s communication apps. Included in the revamp will be the ability to “ring” another Google user with Google Meet, within the Gmail mobile app instead of the Meet app. According to Google, the Meet app will get the same ability to place calls at some point in the future. Users will be able to hide tabs that they don’t use, according to Google. The redesign will first launch to enterprises with the features available for regular consumers soon after that time.

Twitter Test New Timeline Feature

If you made a visit to your Twitter app this week, you may have noticed a slight change. The popular social media app has launched its new timeline feature. The update which is still in testing mode includes edge-to-edge media in tweets on iOS and a community section. The expanded timeline will create a more full-screen appearance, similar to Instagram for photos and videos. The “Communities” space will serve as a feature similar to Facebook groups. The new space invites users to tweet specifically to interest-based communities instead of just to your followers. Tweets shared with specific interest-based groups will still be public but with replies limited to other community members.  

 

California home prices and sales show signs of normalizing in July 

The California Association of Realtors reported that existing home sales totaled 428,980 on a seasonally adjusted annualized rate in July, down 2% from the number of sales last July.

The median price paid for an existing home in July was $811,170, up 21.7% from last July when the median price was $666,320. While a 21.7% year-over-year increase in the median price would normally be a historic rise, it followed three straight months of year-over-year increases of 30% or more. There had never been a 30% year-over-year increase in the median price prior to April.

The California Association of Realtors tracks inventory levels based on how many months it would take to sell the active listings in all MLS systems at the current sales level. There was a 1.9 month supply of homes for sale in July, up from a 1.7 month supply in June and down from a 2.7 month supply of homes for sale last July. Active listings are beginning to climb, and are at the highest level since last October.

U.S. employers added 943,000 jobs in July – The Department of Labor and Statics reported that 943,000 new jobs were added in July. That exceeded the 845,000 new jobs experts predicted. Average hourly wages rose 4% year over year. The unemployment rate was 5.4% in July, down from 5.9% in June. It has fallen from a high of 14.8% at the start of the pandemic, but is a long way off from its 3.5% rate before the pandemic. Strong jobs report pushes stock markets to or near record highs – Stocks rallied on the news that employers added nearly one million jobs in July. It was widely felt that the spike in COVID cases would effect hiring, but it certainly did not in July. The Dow Jones Industrial Average closed the week at 35,208.51, up 0.8% from 34,935.47 last week. It is up 14.9% year-to-date. The S&P 500 closed the week at 4,436.52, up 1.0% from 4,395.26 last week. It is up 18.1% year-to-date. The NASDAQ closed the week at 14,835.76, up 1.1% from 14,672.68 last week. It is up 15% year-to-date. U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 1.31%, up from 1.24% last week. The 30-year treasury bond yield ended the week at 1.94%, up from 1.89% last week. We watch bond yields because mortgage rates often follow treasury bond yields. Mortgage rates – The August 5, 2021, Freddie Mac Primary Mortgage Survey reported mortgage rates for the most popular loan products as follows: The 30-year fixed mortgage rate was 2.77%, almost unchanged from 2.80% last week. The 15-year fixed was 2.10%, unchanged from 2.10% last week. The 5-year ARM was 2.40%, down from 2.45% last week. Have a great weekend!

Stock markets closed the week at or near record highs – The week began with the largest one day point drop since October marking five straight days of declines. This was due to fears of rising COVID cases. It has become evident that COVID is not behind us as we had hoped. On Tuesday calming words by the Fed, and another round of corporate profit releases turned markets positive. By week’s end markets had made up all of their loses and returned to record high levels. The Dow Jones Industrial Average closed the week at 35,061.55, up 1.1% from 34,687.85 last week. It is up 14.4% year-to-date. The S&P 500 closed the week at 4,411.79, up 2.0% from 4,327.16 last week. It is up 17.5% year-to-date. The NASDAQ closed the week at 14,836.99, up 2.9% from 14,427.24 last week. It is up 15% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 1.30%, almost unchanged from 1.31% last week. The 30-year treasury bond yield ended the week at 1.92%, almost unchanged from 1.93% last week. We watch bond yields because mortgage rates often follow treasury bond yields.

Mortgage rates – The July 22, 2021, Freddie Mac Primary Mortgage Survey reported mortgage rates for the most popular loan products as follows: The 30-year fixed mortgage rate was 2.78%, down from 2.88% last week. The 15-year fixed was 2.17%, down from 2.22% last week. The 5-year ARM was 2.49%, almost unchanged from 2.47% last week.

June U.S. home sales – The National Association of Realtors reported that existing-home sales jumped 22.9% from the number of homes sold last June. The median price paid for a home in May was $363,300, up 23.4% from last June’s median price of $294,400. May marked the 112th straight months of year-over-year increases in the median price. The unsold inventory level is at a 2.6-month supply, down from a 3.9-month supply one year ago. Total housing inventory was 3.3% higher in June than the number of homes for sale in May, but down 18.8% from the number of homes for sale one year ago. First time buyers accounted for 31% of all purchases. Second-home and investor purchases accounted for 17% of all homes sold. Foreclosures and short sales accounted for less than 1% of all homes sold. All cash purchases accounted for 23% of all transactions.

Stock markets ended the week slightly lower – Stock markets had a relatively quiet week. Second quarter corporate profits have come in strong which was expected. Unfortunately, investors sold off stocks Friday on fears of rising COVID cases. That brought stock markets down at the close of the week. The Dow Jones Industrial Average closed the week at 34,687.85, down 0.5% from 34,870.16 last week. It is up 13.2% year-to-date. The S&P 500 closed the week at 4,327.16, down 0.7% from 4,369.55 last week. It is up 15.5% year-to-date. The NASDAQ closed the week at 14,427.24, down 1.9% from 14,701.92 last week. It is up 12% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 1.31%, down from 1.37% last week. The 30-year treasury bond yield ended the week at 1.93%, down from 1.99% last week. We watch bond yields because mortgage rates often follow treasury bond yields.

Mortgage rates – The July 15, 2021, Freddie Mac Primary Mortgage Survey reported mortgage rates for the most popular loan products as follows: The 30-year fixed mortgage rate was 2.88%, down slightly from 2.90% last week. The 15-year fixed was 2.22%, almost unchanged from 2.20% last week. The 5-year ARM was 2.47%, down from 2.52% last week.

California home prices continue to rise at record pace in June – The California Association of Realtors reported that existing home sales totaled 436,000 on a seasonally adjusted annualized rate in June. That marked a year-over-year increase of 28% in the number of sales last June. The median price paid for an existing home in June was $819,630, up from May’s $818,260 median price. Year-over-year the median price increased 30.9% from last June when the median price was $588,070. June marked a third straight month of year-over-year gains of over 30% in the median price. The California Association of Realtors tracks inventory levels based on how many months it would take to sell the active listings in all MLS systems at the current sales level. There was a 1.7 month supply of homes for sale in June, down from a 2.7 month supply of homes for sale last June. Active listings are beginning to climb, and are at the highest level since last October.

Below are median price and sales data by county.

California home prices continue to rise at record pace in June

The California Association of Realtors reported that existing home sales totaled 436,000 on a seasonally adjusted annualized rate in June. That marked a year-over-year increase of 28% in the number of sales last June.

The median price paid for an existing home in June was $819,630, up from May’s $818,260 median price. Year-over-year the median price increased 30.9% from last June when the median price was $588,070. June marked a third straight month of year-over-year gains of over 30% in the median price.

The California Association of Realtors tracks inventory levels based on how many months it would take to sell the active listings in all MLS systems at the current sales level. There was a 1.7 month supply of homes for sale in June, down from a 2.7 month supply of homes for sale last June. Active listings are beginning to climb, and are at the highest level since last October.

Below are median price and sales data by county.

Stocks slightly higher after turbulent week – Stocks markets exhibited huge swings this week. Thursday markets plunged over one percent as investors feared that thespike in new COVID Delta variant cases would slow the progress of the world returning to normalcy after the pandemic. A decision by Japan not to allow fans at the summer Olympics was also announced Thursday.  Economic data released Thursday suggesting that shortages in supplies and labor could be slowing the international economy. Also on Thursday the U.S. new unemployment claims rose to 373,000  which was higher than expected. On Friday markets rose over one percent after early second quarter corporate earnings began to be released. Companies had record profits in the second quarter of 2021. By days end many companies and experts conceded that those earnings were compared to one year ago when sales were anemic due to the pandemic. Compared to the second quarter of 2019, 2021 figures were still strong but nowhere near the year-over-year gains when compared to profit levels at the worst time of the pandemic.  The Dow Jones Industrial Average closed the week at 34,870.16, up 0.2% from 34,786.35 last week. It is up 13.7% year-to-date. The S&P 500 closed the week at 4,369.55, up 0.4% from 4,353.54 last week. It is up 16.2%  year-to-date. The NASDAQ closed the week at 14,701.92, up 0.4%, from 14,639.33 last week. It is up 14.0% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 1.37%, down from 1.44% last week. The 30-year treasury bond yield ended the week at 1.99%, down from 2.06% last week. We watch bond yields because mortgage rates often follow treasury bond yields.

Mortgage rates – The July 8, 2021, Freddie Mac Primary Mortgage Survey reported mortgage rates for the most popular loan products as follows: The 30-year fixed mortgage rate was 2.90%, down from 2.98% last week. The 15-year fixed was 2.20%, down from 2.26% last week. The 5-year ARM was 2.52%, unchanged from 2.53% last week.

Housing data is released by the California Association of Realtors and the National Association of Realtors around the third week of the month for the previous month. Local market data for June is available on my website now. Search market reports. Those results again show rising sales, listings, and double digit price increases. Check my website to view your city, or zip code. If the state and national numbers are anywhere like our area I’d expect to see another month of record results when June sales are released. That will be the end of next week or the first of the following week. Hopefully we will have some of those numbers released before next weeks report.

U.S. employers added 850,000 jobs in June – The Department of Labor and Statics reported that 850,000 new jobs were added in June. That was a much higher than the 559,000 new jobs added in May, and the most jobs added in 10 months. The unemployment rate was 5.9% in June, up from 5.8% in May, as more workers entered the workforce.

Stock markets up again this week – Stocks markets rose again this week, and the S&P closed the week at another record high. The June jobs report showed that the jobs recovery from pandemic related layoffs is strong. Employer’s added jobs at the fastest pace in 10 months. The Dow Jones Industrial Average closed the week at 34,786.35, up 1.0% from 34,433.84 last week. It is up 13.6% year-to-date. The S&P 500 closed the week at 4,352.54, up 1.7% from 4,280.70 last week. It is up 15.9% year-to-date. The NASDAQ closed the week at 14,639.33, up 1.9%, from 14,360.49 last week. It is up 13.5% year-to-date.

U.S. Treasury bond yields – The 10-year treasury bond closed the week yielding 1.44%, down from 1.54% last week. The 30-year treasury bond yield ended the week at 2.05%, down from 2.16% last week. We watch bond yields because mortgage rates often follow treasury bond yields.

Mortgage rates – The July 1, 2021, Freddie Mac Primary Mortgage Survey reported mortgage rates for the most popular loan products as follows: The 30-year fixed mortgage rate was 2.98%, down from 3.02% last week. The 15-year fixed was 2.26%, down from 2.34% last week. The 5-year ARM was 2.53%, unchanged from 2.53% last week.