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Stocks drop for second week – Political drama and a terrorist attack in Barcelona weighed on investors and were attributed by analysts as the cause of stocks falling this week. Stocks are now off about 2% from their all time highs just two weeks ago. The Dow Jones Industrial Average ended the week at 21,674.51, down from 21,858.33 last week. The S&P 500 closed the week at 2,425.55, down from its close last week of 2,441.33. The NASDAQ closed the week at 6,216.53, down from last week’s close of 6,256.56. 

Bond yields stable this week – The 10-year Treasury bond closed the week at 2.19%, unchanged from 2.19% last week. The 30-year treasury yield ended the week at 2.78%, almost unchanged from 2.79% last week. Mortgage rates follow treasury bond yields so we watch bond yields carefully.

Mortgage Rates down slightly this week – The August 17, 2017 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 3.89%, down slightly from 3.90% last week. The 15-year fixed was 3.16%, down slightly from 3.18% last week. The 5-year ARM was 3.16% up slightly from 3.14% last week. 

Existing home sales and prices higher in July than last July – Sales of existing homes in California totaled a seasonally annualized rate of 421,460 units in July, according to the California Association of Realtors. The number of sales of existing homes was down 4.9% from June’s sales pace. July’s sales pace was still 0.9% higher than last July. The statewide median price was $549,460, up 7.4% from July 2016. There was a 3.2 month supply of homes for sale, up from 2.7 months in June, but down from 3.6 months in July 2016. 

Have a great weekend!
Syd

Computer company, Property Spark, has put together a list of the top 20 Los Angeles real estate agents they believe are taking over social media.

“These Realtors have managed to turn Los Angeles real estate into a global social media phenomenon,” said Property Spark.

Six out of the 20 accounts selected by the company belong to Rodeo Realty agents. In total, seven Rodeo Realty agents are mentioned, one being a team. Below are the agents and their Instagram accounts featured on the list.

To view Property Spark’s Top 20 list, click HERE.

https://www.instagram.com/p/BEHCsbpR37E/

https://www.instagram.com/p/BJw12q_gkBC/

https://www.instagram.com/p/BL6i1ZGgGTl/

https://www.instagram.com/p/BQ3oUAMFxbk/

https://www.instagram.com/p/BLWj-9UhQcR/

https://www.instagram.com/p/BSSDj50D0I7/

Stock markets hit record highs this week – Stocks rose this week on rising oil prices, better results from retailers, and an upgraded revision in the first quarter GDP. Oil prices which dropped in 2015 and 2016 put pressure on energy stocks in the last couple years. This year they were rising before falling in April. That drop caused OPEC to cut oil production which lifted oil prices. This week OPEC announced that the production drop will last until March 2018 which lifted oil further and caused energy stocks to rise. Several retailers reported first quarter profits that beat estimates this week. Among those were Costco, Best Buy and Tiffany’s. Target and Home Depot also raised outlooks. Earlier in the month Macey’s, JC Penny and others reported disappointing profits which made experts think consumers were slowing down on spending. These new results calmed investors who were worried about retailers. The first quarter GDP was also revised upward from 0.7% to 1.2%. It was a strong week all around. The Dow Jones Industrial Average ended the week at 21,080.28, up from 20,804.84 last week. The S&P 500 closed the week at 2,414.82, up from its close last week of 2,381.73. The NASDAQ closed the week at 6,210.19, up from last week’s close of 6,083.79. 

Treasury Bond yields stable this week – The 10-year Treasury bond closed the week at 2.25%, up slightly from 2.23% last week. The 30-year treasury yield ended the week at 2.92% also up slightly from 2.90% last week. Mortgage rates follow treasury bond yields so we watch bond yields carefully. 

Mortgage Rates down this week – The May 25, 2017 Freddie Mac Primary Mortgage Survey reported that the 30 year fixed mortgage rate average was 3.95%, down from 4.02% last week. The 15 year fixed was 3.19%, down from last week’s 3.27%. The 5-year ARM was 3.07%, down from 3.13% last week. 

U.S. Existing homes sales pace declines in April – The National Association of Realtors reported that the number of homes sold in April declined 2.3% from March’s sales pace. Sales nationwide were still 1.6% above the number if sales last April. Simply put the number of new listings are not keeping up with the pace of sales. Low inventory also causes prices to rise. The median price of a home rose 6% nationally from last April. April marked the 62nd straight month of year over year price gains. 

California pending home sales fewer in April – The California Association of Realtors reported that an extremely low supply of homes for sale has caused the number of new contracts signed on existing homes in California to fall for the fourth straight month. The number of new contracts signed decreased 7.4% from the number of pending sales last April. Southern California fared much better that the state as a whole. Southern California pending sales were down 2.8% from last April. Los Angeles pending sales were down 4.7% from April 2016. 

Have a great holiday weekend!
Syd

Stocks end the week just slightly down despite volatility – Stocks rose early in the week as oil prices rebounded after OPEC and non OPEC members announced plans to slow production. More disappointing earnings particularly from retailers were released. Political uncertainty was blamed on a steep drop on Thursday, but markets made up most of those losses on Friday. The Dow Jones Industrial Average ended the week at 20,804.84, down from 20,896.71 last week. The S&P 500 closed the week at 2,381.73, down slightly from its close last week of 2,390.90. The NASDAQ closed the week at 6,083.79, down from last week’s close of 6,121.23. 

Treasury Bond yields drop this week – The 10-year Treasury bond closed the week at 2.23%, down from 2.33% last week. The 30-year treasury yield ended the week at 2.90%, down from 2.98% last week. Mortgage rates follow treasury bond yields so we watch bond yields carefully. 

Mortgage Rates down this week – The May 18, 2017 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 4.02%, down from 4.05% last week. The 15-year fixed was 3.27%, down from last week’s 3.29% The 5-year ARM was 3.13%, down slightly from 3.14% last week. Rates dropped late in the week, so next week’s rates should be a little lower. 

The number of existing homes sold in California decline in April – Prices continue to rise – The California Association of Realtors reported that existing home sales statewide declined 2.4% in April from March to a seasonally adjusted rate of 406,300 in April. That was 1.7% below the sales rate last April. The Southern California region had the largest decline. The number of sales were down 6.5% from April 2016. The decline in sales was attributed to a historically low number of homes for sale. Statewide there was a 3.5-month supply of homes for sale in April. That was the lowest April reading since C.A.R. has been tracking their Unsold Inventory Index. New listings taken statewide have declined for 22 straight months, falling 10.5% from last April. Prices continue to move up. The statewide median price was $536,750. It increased 3.7% from March’s median price of $517,490. Year over year the median price increased 5.4% from $509,240 in April 2016. 

Have a great weekend,
Syd

Stocks mixed this week – It was a very stable week for stocks. Market volatility reached a 24-year low. Investors were encouraged by higher quarterly corporate earnings announcements from many companies, and a rebound in CPI, which surprisingly dropped in March. Also, optimism of pro growth tax reform, and defense and infrastructure spending kept investors optimistic. Markets shrugged off some disappointing news this week like: Falling oil prices, which has caused energy stocks to drop. Oil prices are down 10.8% year-to-date. Some retail companies continue to struggle due to pressure from online retailers. Year-to-date, 9 large retailers have declared bankruptcy, the same amount as all of last year. The dollar strengthened further against most currencies, which could hurt exports in the future. The Dow Jones Industrial Average ended the week at 20,896.71, down from 21,006.94 last week. The S&P 500 closed the week at 2,390.90, down slightly from its close last week of 2,399.29. The NASDAQ closed the week at 6,121.23, up from last week’s close of 6,100.76.

Consumer prices rebound in April – The Labor Department reported that consumer prices rose 0.2% in April. This followed a surprising decline of 0.3% in March, which scared investors. Year over year consumer prices were up 2.2% in April. That is in line with the Fed’s inflation target.

Treasury Bond yields – The 10-year Treasury bond closed the week at 2.33%, down from 2.36% last week. The 30-year treasury yield ended the week at 2.98%, unchanged from 2.99% last week.
Mortgage Rates – The May 11, 2017 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 4.05%, almost unchanged from 4.02% last week. The 15-year fixed was 3.29%, almost unchanged from last week’s 3.27%. The 5-year ARM was 3.14%, also almost unchanged from 3.13% last week.

Foreclosures at lowest level since 2005 – Foreclosure filings dropped 23% from one year ago. The number of homes in default have hit their lowest level since November 2005.

Have a great weekend,
Syd

Hiring rebounds in April with 211,000 new jobs – The Labor Department reported that U.S. employer’s added 211,000 new jobs in April. This followed a disappointing March in which only 98,000 new jobs were added. The unemployment rate dropped to 4.4%, a 10-year low. Wages rose just 2.5% year over year from last April’s level. 

Stocks up for week – Stock markets rose this week as tech companies reported first quarter earnings that beat expectations. The tech heavy NASDAQ is up 13% for the year. The DOW and S&P are also up 6.3% and 7.2% respectively year to date. They barely moved this week as they were held back by energy companies that dropped on falling oil prices, disappointing results from big retailers, and auto stocks that dropped following fewer auto sales in April. The April jobs report caused stocks to rally Friday and end the week higher. The Dow Jones Industrial Average ended the week at 21,006.94, up from 20,940.51 last week. The S&P 500 closed the week at 2,399.29, up from its close last week of 2,384.20. The NASDAQ closed the week at 6,100.76, up from last week’s close of 6,047.71. 

Treasury Bond yields end month lower – The 10-year Treasury bond closed the week at 2.36%, up from 2.29%, last week. The 30-year treasury yield ended the week at 2.99%, up from 2.96% last week. 

Mortgage Rates lower in April – Mortgage rates dropped to a 5 month low in April. The May 3, 2017 Freddie Mac Primary Mortgage Survey reported that the 30 year fixed mortgage rate average was 4.02%, almost unchanged from 4.03% on April 27, 2017. The 15 year fixed was 3.27%, unchanged from last week’s close. The 5-year ARM was 3.13%, also almost unchanged from 3.12% last week. 

Have a great weekend. 

Stocks markets rise in April – Stocks declined in the first two weeks of the month after disappointing March job gains, a decline in the pace of wage gains, lower retail sales, and a decline in the CPI rate were announced. Stocks rallied in the final week of April as first quarter earnings that beat expectations were announced by several companies. A disappointing first quarter GDP growth report slowed the earnings rally. Next Friday’s jobs report is on everyone’s mind. After strong January and February job growth, March’s figure, which showed that only 98,000 new jobs were created, about 1/2 of what was expected, surprised everyone. The April report will show if the pace of hiring is slowing, or if March’s results were just an aberration. The Dow Jones Industrial Average ended the month at 20,940.51, up from its March 31, 2017 close of 20,663.22. The S&P 500 closed the month at 2,384.20, almost unchanged from its March close of 2,362.72. The NASDAQ closed the month at 6,047.61, up from last month’s close of 5,911.74.

Treasury Bond yields end month lower – The 10-year Treasury bond closed on April 30, 2017 at 2.29%, down from 2.40% at the end of March. The 30-year treasury yield ended the month at 2.96%, down from 3.02% last month.

Mortgage Rates lower in April – Mortgage rates dropped to a 5-month low in April. The April 27, 2017 Freddie Mac Primary Mortgage Survey reported that the 30 year fixed mortgage rate average was 4.03%, down from 4.14% on March 30, 2017. The 15 year fixed was 3.27%, down from last month’s close of 3.39%. The 5-year ARM was 3.12% down from 3.18% on March 30.

California’s unemployment rate falls to 4.9% in March – The Employment Development Department reported that California’s employers added 19,300 new non-farm jobs in March. The state’s unemployment rate dropped to 4.9% from 5% in February. Since February 2010 when the state’s unemployment peaked at 10%, California has gained 2,507,400 jobs. 

Economy grows at slowest pace in three years – Gross Domestic Product rises just 0.7% in Q1 2017 – The Commerce Department reported that the Gross Domestic Product, the broadest measure of growth in the economy, rose at just a 0.7% annual rate in the first quarter of 2017. That was the slowest quarterly growth in 3 years. Consumer spending was up at an annual rate of just 0.3% in the quarter. It was the smallest increase since 2009. Economists surveyed expected GDP growth to be closer to 1% in Q1, and expect growth to pick up in the second half of the year. 

Retail sales fall for second straight month – The Commerce Department reported that retail sales dropped 0.2% in March. This followed a 0.3% decrease in February, which was the first decrease in a year. Last March retail increased 5.2%, so a 0.2% decline this March has investors wondering just how strong the economy is. 

Inflation becomes more tame in March – The Labor Department reported that it’s Consumer Price Index slipped 0.3% in March. It was the first decline in prices since January 2015. For the last 12 months through March the consumer prices rose 2.4%. That’s down from last month when prices were 2.7% higher than last February.

California existing home sales and prices strong in March – Low inventory pushes prices up – The California Association of Realtors reported that home sales totaled 416,580 in March on a seasonally adjusted annualized rate. That represented a 4% increase from February’s pace and a 6.9% increase from last March’s sales pace. The Los Angeles Region was even stronger. It saw an 8.5% year over year increase in sales numbers from March 2016. The median price paid for a home in California was $517,020. It increased 8% month over month from $478,570 in February. We did see month over month prices down in January and February, so the 8% rebound made up those declines. Year over year the median price was 6.8% higher than $484,120 last March. Inventory levels decreased as less people put their homes up for sale. The unsold inventory index dropped one full month to a 3 month supply of homes for sale. That’s down from a 4 month supply in February. A 3-month supply of homes for sale is the lowest March reading ever. 

California pending home sales decline in March – The California Association of Realtors reported that new contracts for existing single family homes declined in March. The number of contracts signed statewide in March declined 4.5% from the number of contracts signed in March 2016. They were also down 2.9% month over month from February. Los Angeles County faired better than the state as a whole. Contracts signed in Los Angles County increased 1.6% from the number signed one year ago. The C.A.R. attributed an unusually tight supply of inventory as the reason for the decline in new sales contracts. There was just a 3-month supply of homes for sale in March. A normal market has a 6 to 7 month supply. We watch pending sales because they are an indicator of what closed sales will 30 to 60 days later.

U.S. existing home sales at highest pace in over 10 years in March – The National Association of Realtors reported that sales of single family homes increased 4.4% in March to an annualized adjusted rate of 5.71 million homes. March’s sale pace was 5.9% higher than March 2016. It was the highest monthly rate of sales since February 2007. Year over year the median price paid for a home nationwide increased 6.8% from last March. It was the 61st consecutive month of year over year price gains. The number of homes for sale has dropped year over year for 22 straight months. Nationally there is just a 3.8 month supply of homes for sale. The National Association of Realtors single family home figures include sales of detached homes, condominiums, town-homes, and co-ops. 

U.S. new home sales at 8-month high – The Commerce Department reported that new home sales jumped 5.8% in March. Analysts expected a much tamer jump. New home sales were at an 8-month high. 

Have a great weekend,
Syd

Stock markets higher this week – After a few weeks of declines, stocks made up some ground as the beginning of first quarter earnings were released, a 7% decline in oil prices, and political headlines lead to a volatile week. The Dow Jones Industrial Average ended the week at 20,547.76, up from last week’s close of 20,453.25. The S&P 500 closed the week at 2,348.69, up from 2,328.95 last Friday. The NASDAQ closed the week just off Thursday’s all time high at 5,910.52, up from last week’s close of 5,805.15.

Treasury Bond yields unchanged this week – The 10-year Treasury bond ended the week at 2.24%, almost unchanged from 2.23% last week. The 30-year treasury yield ended the week at 2.89%, unchanged from 2.89% last Friday.

Mortgage Rates – 30-year drops below 4% for first time in 5 months – Mortgage rates dropped for the fourth straight week. The April 20, 2017 Freddie Mac Primary Mortgage Survey reported that the 30-year fixed mortgage rate average was 3.97%, down from 4.08% last week. The 15-year fixed was 3.23%, down from 3.34% last week. The 5-year ARM was 3.10%, also down from 3.18% last week. Rates increased slightly near the end of the week so next week’s average should be slightly higher.

California’s unemployment rate falls to 4.9% in March – The Employment Development Department reported that California’s employers added 19,300 new non-farm jobs in March. The state’s unemployment rate dropped to 4.9% from 5% in February. Since February 2010, when the state’s unemployment peaked at 10%, California has gained 2,507,400 jobs.

California home sales and prices strong in March – Low inventory pushes prices up – The California Association of Realtors reported that home sales totaled 416,580 in March on a seasonally adjusted annualized rate. That represented a 4% increase from February’s pace and a 6.9% increase from last March. The Los Angeles Region was even stronger. It saw an 8.5% year over year increase in sales from March 2016. The median price paid for a home in California was $517,020. It increased 8% month over month from $478,570 in February. We did see month over month prices down in January and February, so the 8% rebound made up those declines. Year over year the median price was 6.8%, higher than $484,120 last March. Inventory levels decreased as less people put their homes up for sale. The unsold inventory index dropped one full month to a 3-month supply of homes for sale. That’s down from a 4-month supply in February. A 3-month supply of homes for sale is the lowest March reading ever.

U.S. Existing home sales at highest pace in over 10 years in March – The National Association of Realtors reported that sales of single family homes increased 4.4% in March to an annualized adjusted rate of 5.71 million homes. March’s sale pace is 5.9% higher than March 2016. It was the highest monthly rate of sales since February 2007. Year over year the median price paid for a home nationwide increased 6.8% from last March. It was the 61st consecutive month of year over year price gains. The number of homes for sale has dropped year over year for 22 straight months. Nationally, there is just a 3.8-month supply of homes for sale. The National Association of Realtors single family home figures include sales of detached homes, condominiums, town-homes, and co-ops.

Have a great weekend,

Syd

Stocks drop again this week – Markets were closed Friday in observance of Good Friday. In a shortened week stocks dropped again. While stock indexes are about 10% higher than they were before the election in November, stocks have dropped to mid February levels after reaching record highs in March. The Dow Jones Industrial Average on April, 13, 2017 was 20,453.25, down from last week’s close of 20,656.10. The S&P 500 closed the month at 2,328.95, down from 2,355.54 last Friday. The NASDAQ closed the month at 5,805.15, down from last week’s close of 5,877.81.

Treasury Bond yields lower again this week – The 10-year Treasury bond ended the week at 2.23%, down from 2.38% last week. The 30-year treasury yield ended the month at 2.89%, down from 3.00% last Friday. 

Mortgage Rates – Mortgage rates dropped for the third straight week. The April 13, 2017 Freddie Mac Primary Mortgage Survey reported that the 30 year fixed mortgage rate average was 4.08%, down from 4.10% last week. The 15 year fixed was 3.34%, down slightly from 3.36% last week. The 5-year ARM was 3.18%, about the same as 3.19% last week. Rates dropped Wednesday and Thursday so next week’s rates should be about 4% for a 30 year fixed.

Retail sales fall for second straight month – The Commerce Department reported that retail sales dropped 0.2% in March. This followed a 0.3% decrease in February which was the first decrease in a year. Last March retail increased 5.2% so a 0.2% decline this March has investors wondering just how strong the economy is. 

Inflation becomes more tame in March – The Labor Department reported that it’s Consumer Price Index slipped 0.3% in March. It was the first decline in prices since January 2015. For the last 12 months through March The CPI rose 2.4%. That’s down from last month when prices were 2.7% higher than last February.

Have a great weekend,
Syd

Job gains stall in March – The Labor Department reported that 98,000 new jobs were added in March. Experts had expected a gain of 185,000. The unemployment rate dropped to 4.5%, its lowest reading since 2007, and down from 4.7% in February, where 235,000 jobs were added. The labor participation rate, which shows the share of working-age people in the workplace, was unchanged at 63%. Wages in March grew 2.7% from one year ago. That was below last month’s year over year 2.8% increase. This was also a number that had been increasing at a better pace, which was disappointing. Experts were taken by surprise after ADP, the nations largest payroll company, estimated that 263,000 jobs would be added just two days before the official number was released. Experts opinions were mixed. Some blamed the weather for the drop in hiring. Some pointed to the surprisingly strong job growth in January and February and shrugged off the drop looking more at the monthly average over the past 3 months, which is still a strong number. A few experts warned that this may be the first sign that job creation is stalling as employers are becoming less optimistic of the surge they had expected in the economy following the election. One thing most experts agree on is that the Fed will not hike interest rates at their next meeting because of this jobs report.

Stocks lower this week – Stocks were down slightly again this week. They are down about 3% from their all time highs just 3 weeks ago. It should be noted that they are still up over 10% since November. First quarter earnings will begin to come in over the next few weeks. The Dow Jones Industrial Average on March 31, 2017 was 20,656.10, down from last week’s close of 20,663.22. The S&P 500 closed the month at 2,355.54, down from 2,362.72 last Friday. The NASDAQ closed the month at 5,877.81, down from last week’s close of 5,911.74.

Treasury Bond slightly lower again this week – The 10-year Treasury bond ended the week at 2.38%, down from 2.40% last week. The 30-year treasury yield ended the month at 3.00%, down slightly from 3.02% last Friday. 

Mortgage Rates – The April 6, 2017 Freddie Mac Primary Mortgage Survey reported that the 30 year fixed mortgage rate average was 4.10%, down from 4.14% last week. The 15 year fixed was 3.36%, down slightly from 3.39% last week. The 5-year ARM was 3.19%, slightly higher than 3.18% last week. 

Have a great weekend,
Syd