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Redondo Beach, CA Real Estate News

By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The ISM Non-Manufacturing PMI dropped to 55.3, which was better than the forecast of 54.3.  Anything above 50 with this index indicates expansion.  The FOMC Minutes from it's June meeting were released today.  It basically reiterated what the Fed has been saying all along.  The 50 or 75 bps rate hike is on the table for it's July meeting.  Also, if inflation persists, then they may take more restrictive measures.  Both Stocks and Bonds were in negative territory prior to the release of the Minutes, but Stocks started to improve after the release, while Bonds sank further.  This was mostly to due liquidity issues with the Bond Market, as investment dollars flowed back into the Equities Market.  MBS is currently Down 61bps, so Mortgage Rates worsened to...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Factory Orders rose 1.6% in May; and it's April number was revised higher, from 0.3% to 0.7%.  This will be interesting to follow, as much of the manufacturing data have been contracting.  This week will feature Jobs data; however, one Jobs report will be placed on hold for a bit, as they retool it.  That will be the ADP Private Payrolls, which is typically the first of the Jobs data and released on Wednesday.  MBS is benefitting from a shift in investment dollars from the Equities Market, as Investors are concerned over recession fears.  The price of oil dropped below $100 and the US Dollar is stronger than the Euro.  So, MBS is currently Up 28bps and challenging it's 50 DMA now.  This improvement means there is improvement for Mortgage Rates, as the...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Construction Spending dropped 0.1% in May; however, it's April data was revised higher, from 0.2% to 0.8%.  The ISM Manufacturing PMI dropped from 56.1 in May to 53.0 in June; coming in under forecasts of 54.9.  Anything above 50 with this index indicates expansion.  So, many PMIs were released globally (Asia and Europe) today, which seems to be a global trend that these are slowing down (some even contracted).  This has Investors worried, as the Fed is on trajectory with a very hawkish policy path, which they feel will lead us into a recession (if we're not already in one, as some believe).  As a result, investment dollars are flowing back into Bonds/Treasuries for safe keeping (or "flight to safety").  MBS closed Up 42bps (off from earlier highs), w...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Personal Consumption Expenditure (PCE) released it's inflation data today.  This index is the Fed's favorite gauge for inflation, so it holds a lot of weight (in terms of impact with Markets).  The PCE rose 0.6% in May, while it's YoY remained Unchanged at 6.3%.  The Core PCE (excluding food and energy; and the data that the Fed uses) rose 0.3% while it's YoY dropped 0.2% to 4.7% in May.  Personal Income rose 0.5% in May; and Consumer Spending rose only 0.2%.  Jobless Claims rose 2k last week to 231k while the Continued Claims rise, as well.  Lastly, the Chicago PMI, which measures manufacturing in Chicago region, dropped from 60.3 in May to 56.0 in June.  The Inflation data was good news for the Markets, as it may indicate it may have peaked.  We...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Q1 GDP released it's final revision, which dropped another .1% from the previous revision; and the final is a drop of 1.6% for Q1.  MBS is Up today, which it was around 17bps in the beginning of the video, then it jumped up to 25bps.  If this continues, then we could see more price improvements; but overall, Mortgage Rates improved from yesterday.  Speaking of yesterday, it rebounded late in the day to closing up 3bps, after being in negative territory all day.  Improved inflation data out of Germany started a little rally with Euro Bonds, which trickled over to the US.  Sentiment is feeling optimistic ahead of the PCE release tomorrow; however, the CPI sorely disappointed about 2 weeks ago.  This report will have greater impact, as it's the Fed's...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Case Shiller Home Price Index (HPI), which measures home prices in the 20 largest metros in US, rose 1.8% in April while it's YoY rose to 21.2% (after March lower revision from 21.2% to 21.1%).  The FHFA HPI, which follows conforming loans, rose 1.6% in April while it's YoY dipped to 18.8% (from 19.1%).  Lastly, the Consumer Confidence continues to drop, as it dipped all the way to 98.7 in June.  This is important because if Consumers aren't feeling good about the economy, then they will stop buying, which in turn helps the economy to continue to move along; but the high inflation (namely food and energy) are eating away at many peoples' ability to buy any of the extras in their life (and thus not feeling good about it).  Stocks started up earlier...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Durable Goods Orders rose 0.7% in May, exceeding expectations of 0.1%.  Pending Home Sales broke it streak of declines in May, as it rose by 0.7% to 99.9k annualized units.  There are a number of important data to watch this week, but none more important than Thursday's PCE release.  PCE is the Fed's favorite gauge for inflation, which carries a bit more weight than the CPI, which the Markets reacted quite negatively a few weeks ago with it's release.  Both Markets are Down today, as MBS started the morning down around 30bps, then it subsided, but when the poor auction results were released around 10am PST for the 5 year Treasury, then it dropped back down toward the lows of the day (about -30bps), as Mortgage Rates worsen by approximately .125% to th...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  New Homes Sales beat expectations for May, as it jumped up 10.7% to 696k seasonally adjusted units.  However, Consumer Sentiment dipped down to 50.0 in June.  A few bits that we don't normally look at, but Fed Chair Powell made a comment about it, which raised it's importance this week.  The comment was regarding the Consumer Sentiment toward inflation, or outlook of inflation over a 1 year and 5 year period.  Both were recently lower in June, compared to May's outlook.  The 1 year went from 5.4% to 5.3%; and the 5 year went from 3.3% to 3.1%.  This helped to ease concerns for many investors, as Stocks improved yesterday and have continued this trend today.  As a result, money has flowed over to Equities from Bonds.  Yesterday, MBS was up 77bps, and c...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The weekly Initial Jobless Claims dipped to 229k last week, after last week's report was revised higher, from 229k to 231k.  Also, there was a slight increase to the Continuing Claims from last week.  The Markit PMI released their 2 reports (Manufacturing and Services) for the month of June, which anything above 50 is considered expansion.  The Markit Services PMI dropped from 53.4 in May to 51.6 in June; and the Markit Manufacturing PMI dropped from 57.0 in May to 52.4 in June.  Fed Chair Powell wraps up his 2 day testimony before the House Committee today.  Investors continue to be concerned that the hawkish Fed policy will force the economy into a recession.  There have been recent signs that the economy may not be as strong as the Fed has been sta...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The weekly Initial Jobless Claims dipped to 229k last week, after last week's report was revised higher, from 229k to 231k.  Also, there was a slight increase to the Continuing Claims from last week.  The Markit PMI released their 2 reports (Manufacturing and Services) for the month of June, which anything above 50 is considered expansion.  The Markit Services PMI dropped from 53.4 in May to 51.6 in June; and the Markit Manufacturing PMI dropped from 57.0 in May to 52.4 in June.  Fed Chair Powell wraps up his 2 day testimony before the House Committee today.  Investors continue to be concerned that the hawkish Fed policy will force the economy into a recession.  There have been recent signs that the economy may not be as strong as the Fed has been sta...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  There's no notable items on the Economic Calendar today, but there was some positive from the MBA's Mortgage Loan Activity, which reported an increase of Mortgage Loan Origination with Purchase Transactions.  Fed Chair Powell begins his 2 day Congressional Testimony today.  His statements are pretty much the same.  He is talking very hawkish, but also trying to assure the Markets that the economy is doing well and it can handle higher rates.  Meanwhile, Investors are still concerned over the possibility of an upcoming recession due to the Fed Policy Path.  Stocks are down today, as the Money is flowing back into the Bond Market, as a Flight to Safety.  The price of oil has recently subsided dramatically.  It was around $122/barrel about a week ago and...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Existing Home Sales dipped 3.4% in May to 5.41 million seasonally adjusted units.  There's not a lot of data being released this week on the Economic Calendar, so most impact will come from headline/geopolitical news or investor sentiment.  Stocks are Up today, as investment dollars continued to flow from Bonds to Equities.  MBS started the morning down much lower and is currently Down 16bps, as Lender ratesheets have worsened since Friday's Market close.  Yields have shot up to just under 3.30% today.**As Mortgage Rates spiked over 6% over past few days, ask me about our 7/6 ARM, which may be a good alternative for you or your client.  Contact me today!**Please subscribe to my YouTube Channel at MikesDailyMarketRptAlso, these videos are base on my vi...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Industrial Production only increased by 0.2% in May, below forecast of 0.4%.  Also, Leading Indicators contracted by 0.4% in May, which sets off 2 months in a row with contraction.  Stocks are Up today, as Investors are buying on the dip; and money is flowing out of Bonds, as a result.  Investors are trying to acclimate to a new environment, which easy money will be gone; and Fed is being aggressive with their attempts to reduce Inflation back down to 2% level.  Meanwhile, mixed data shows that maybe economy might head into a recession.  As a result, we're currently seeing MBS Down 25bps, after seesawing earlier on.  This means that Mortgage Rates worsened a little bit in comparisons to those being quoted after the Market's close yesterday.  Yesterday...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Housing Starts dropped by 14.4% in May, while Building Permits dropped by 7.0%.  The Philly Fed Index, which measures manufacturing in the Philadelphia area, dropped to -3.3, which is contraction.  This is the second manufacturing index to report contraction this week (the other is for the NY area).  The Initial Jobless Claims reported 229k applying for benefits last week.  We're starting to see potential for uptick in job losses, so we'll need to monitor this, as well as, manufacturing.  The BoE reported a .25% rate hike today, which was expected; but, the Swiss National Bank reported a 0.5% rate hike, which surprised the Markets.  Both Stocks and MBS are down today.  MBS started the morning down much lower, based on the actions of the European Centr...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  There are a few items on the Economic Calendar today, but nothing is having any more impact than the FOMC Announcement.  But, we'll start with Retail Sales, which dropped by 0.3% in May.  Empire State Index, which gauges manufacturing activity in the NY region, contracted again in June to the tune of 1.2.  The NAHB Home Builders Index dropped from 69  in May to 67 in June.  This index measures the confidence level for Home Builders, whom are stressing over the higher mortgage rates.  So, now is what we've all been waiting on.... The FOMC Announcement!   The Fed announced a 0.75% (in lieu of the originally planned 0.5%) rate hike, bringing the Fed Funds to 1.75%.  The Fed Dot Plot indicated many more hikes for this year, which it jumped from previous e...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Producer Price Index (PPI), which measures inflation with the wholesale sector, rose 0.8% in May.  The Core PPI, which excludes food & energy, rose by 0.5% in May, as it's YoY dropped from 8.6% in April to 8.3% in May.  This index doesn't always get a lot of respect because many times those costs don't always get passed onto the Consumer; however, in today's high inflation environment, it's receiving more respect.  The Fed begins their 2 day meeting (FOMC) today, which they'll provide their Announcement tomorrow (around 11:15 am PST).  The Markets raised their odd of the Fed increasing their announce rate hike from a 0.5% to 0.75% hike tomorrow.  Personally, I don't think this will happen tomorrow, but could be announced for next FOMC.  Just from ...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  There are no economic data to report today, but the rest of the week does contain a lot of important data.  The most important day this week will be Wednesday, as the FOMC concludes and the Fed provides their announcement.  The Market Sentiment really soured after Friday's release of the CPI data and has spilled over into today's session.  Both Stocks and MBS are getting hit hard.  Investors are beginning to realize that Consumers (based on the Consumer Sentiment last Friday) feel like they're in a recession due to the high prices and are struggling to make it month to month.  Some are wondering if the Fed might revise their rate hike to 75bps, in lieu of the 50bps planned.  Personally, I don't think they will do so at this meeting; however, it's poss...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Inflation data came in with a nuclear explosion!  The Consumer Price Index (CPI) rose 1.0% in May, as it's YoY rose from 8.3% in April to 8.6%.  The Core CPI, which excludes food & energy, rose 0.6% in May, as it's YoY dropped from 6.2% to 6.0%.  Meanwhile, Consumer Sentiment dramatically dropped from 58.4 in May to 50.2 in June.  As one could imagine, Consumers aren't happy about the spike in food and energy!  Investors are looking at this data and are realizing that Inflation may not have peaked yet.  This means that the Fed will need to (possibly) further tighten policy to get inflation back down.  Both Stocks and MBS are Down by a lot today.  MBS was down as much as 110bps, but currently sitting around 75-77bps.  This means that a No Point quote y...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Initial Jobless Claims rise to 229k this week, as it hits a 5 month high.  Markets reacted quickly to the hawkish ECB's announcement, which announced they will hike rates in July; end their asset purchases (reinvest matured bonds); and revised their inflation data higher in their forecasts.  This set the tone with the Markets in the EU in a negative manner, which trickled over to the US Market.  MBS is currently Down 23 bps, as it's been rising and dropping, like a seesaw all day.  The 30 year Bond Auction temporarily helped push up MBS, but it has dropped again thereafter.  Mortgage Rates have worsened slightly.  Yields have risen slightly to 3.04%.Please subscribe to my YouTube Channel at MikesDailyMarketRptAlso, these videos are base on my views an...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Wholesale Inventories rose 2.2% in April.  Both Markets are Down today, as Investors await inflation data on Friday.  They want to verify their beliefs that inflation has already peaked.  Meanwhile, oil continues to climb, reaching $121/barrel.  MBS is also competing with Corporate Bonds that being added to the Market.  It's currently Down 27bps, as Mortgage Rates worsen from yesterday's close; and fell below it's 25 DMA again.  Yields have climbed above the 3% level again; and is currently just under 3.03%.Please subscribe to my YouTube Channel at MikesDailyMarketRptAlso, these videos are base on my views and not represented by any other entity, but my own.  I work as a Loan Officer, and if you'd like information on Mortgages, or how I can assist you...
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