Redondo Beach, CA Real Estate News

By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Markit Manufacturing PMI, as expected dropped to 57.5 in May; and Markit Services PMI dropped to 53.8, below expectations.  New Home Sales dropped 16.6% in April to 591k of seasonally adjusted units, as the spike in Mortgage Rates takes it's toll on New Homes.  Stocks are Down again, as more Corporate Earnings continue to disappoint due to inflationary costs cutting into Profit Margins.  As stocks drop, investors transfer those investment dollars over to MBS, as MBS is Up 52bps so far this morning.  This means that Mortgage Rates improve a bit today, as they slowly approach it's 50 DMA now in it's chart.  Likewise, Yields have dropped down to 2.74%.Please subscribe to my YouTube Channel at MikesDailyMarketRptAlso, these videos are base on my views...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  There are no economic data to report today.  The rest of the week will have some important data being released, such as, Durable Goods, GDP and the biggie, PCE.  Stocks are Up today, as Investors are buying on the Dip, but also on some reports that the Biden Administration is considering removing the Tariffs on China as a method to fight inflation (if you want my remarks, then you can watch video).  MBS is Down about 27bps points today, so Mortgage Rates have worsened since Friday's close.  Fortunately, it's still above the 25 DMA.  Yields climbed up to just under 2.86%.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...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  There are no economic data to report today.  Next week, we'll have a number of important data, but the most important will be the Personal Consumption Expenditure (PCE) on Friday.  This is the Fed's favorite index to gauge Consumer Inflation.  MBS is pretty much following the cue from the Stock Market, which continues it's decline, as Investors stress over inflation induced shrinkage with Corporate Profit Margins, as the Fed continues to hike rates and concerns over recession and stagflation persists with the current economic environment.  MBS started the day lower; however, quickly rose to positive territory (averaging between 6-11bps while filming this video).  This isn't enough to change pricing (compared from yesterday), so Mortgage Rates remain U...
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By Rob Spinosa, SVP of Mortgage Lending, Marin County
(Guaranteed Rate, Marin County, CA)
How to Rock Second Home or Rental Property?   Mortgage guidelines are positively prehistoric when compared to newer companies like AirBnB and VRBO, which have gained popularity as interest in short-term rentals has increased. But when it comes to getting a home loan on a property that is not your primary residence, you have to state on your mortgage application whether you have a second (or vacation) home or you have a rental (aka investment) property, and there is no middle ground for a "vacation rental."  However, there can be real consequences if you get the classification wrong.   So, let's rock the distinction between vacation home and investment property because if you work with your lender and you know the rules, you can, just like the Long Cool Woman in a Black Dress, have it al...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Philly Fed Index dropped from 17.6 in April to 2.6 in May.  This index measures the manufacturing around the Philadelphia area.  This has been see quite a bit this month, so we'll monitor to verify if this is becoming a trend or not.  Initial Jobless Claims rose to 218k.  Housing data continues to disappoint this week, as the Existing Home Sales dropped by 2.4% to 5.61 million annualized units in April.  Lastly, the Leading Indicator dropped 0.3% in April.  Stocks are Mixed today, as Investors continue to worry about shrinking profit margins  and investment dollars are flowing over into MBS.  MBS is currently Up 30bps, as pricing for Mortgage Rates continued to improve.  Today is a first for MBS, which it opened above the 25 DMA.  This is first ti...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Housing Starts dropped by 0.2% in April, as March data was revised lower (from 1.793 million seasonally adjusted units to 1.728 million).  April's data reported at 1.724 million.  Likewise, Building Permits dropped 3.2% in April.  However, it's March data was revised higher (from 1.870 million to 1.879 million).  April's data came in at 1.819 million.  We'll continue to monitor this data, as we saw yesterday that confidence with Home Builders dipped in May.  This trend could continue.  Meanwhile, there's a massive selloff with Stocks today, as Investors continue to review Corporate Earnings Reports, which many large Retailers are releasing their reports this week.  Many have missed their numbers, which is due to their rising costs (a result from high ...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Retail Sales rose 0.9% in April, after a sharp higher revision to March (from 0.5% to 1.4%).  This, on the surface looks very good, but Rick Santelli made a great point about this data.  The point is related to the data not being adjusted for inflation.  The reported data may be over-inflated due to the spike in inflation.  Even Walmart disappointed with their Earnings Reports that was just released yesterday.  More retailers will be releasing their data this week.  In other Economic data, Industrial Production rose 1.1% in April.  The NAHB Home Builders Index, which measures confidence with Home Builders, dropped dramatically in May, as it went from 77 in April to 69 in May.  We'll need to monitor this, as it may indicate that Home Builders may not c...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Manufacturing in the NY region contracted in April, as the Empire State Index reported that it declined 11.6 on it's index on forecasts of +17.00.  The week ahead has Retail Sales (which may coincide with many Corporate Earnings releases for some of the largest Retailers), Housing data and Manufacturing.  Today, Stocks are down again on pessimism by Investors on the possibility of a smooth landing with the path of the Fed policy, as many economists revise global economic growth lower.  Part of the issue lies with China's current COVID lockdowns, which is having a major constraint with the supply chain.  This is having a positive effect with Mortgage Rates, as MBS is currently  Up 13bps, but have been averaging between +14bps to 23bps.  MBS is currentl...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Consumer Sentiment dropped fairly significantly in May, as it went from 65.2 in April to 59.1 in May.  This is an important index to gauge, as Consumer behavior affects whether the economy will weaken or strengthen; and if they're not feeling it, then it could eventually lead to a recession (and possibly, "Stagflation").  It's impact with the Markets today was only brief.  Stocks are rebounding today after a week of beatdowns.  As a result, MBS is currently Down 16bps.  This is simply a movement of investment dollars flowing from MBS to equities, as Investors are buying low.  But this also means for us that Mortgage Rates worsened slightly.  If you watch the video, then you'll see that the 25 DMA held it's own with the MBS and pushed away the tren...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Initial Jobless Claims rose slightly from last week to 203k.  This is people applying for first time benefits.  The good news is that Continuing Claims has continued to decline.  The Producer Price Index (PPI), which measures Wholesale Inflation, rose only 0.5% in April.  This is after a big spike in March, which it rose 1.6%.  The Core PPI, which excludes food & energy, rose only  0.4% (beating out estimates of 0.6%), while it's YoY dropped from 9.6% in March to 8.8%.  Normally, this data doesn't get much respect, but due to inflation being the hot topic, the it's value has increased.  This report has given some investors and economist renewed hope that inflation has peaked; and hopefully, will get better.  Stocks are down again today, as they're...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Consumer Priced Index (CPI) rose 0.3% in April while it's YoY dropped from 8.5% to 8.3%, missing expectations of 8.1%.  The Core CPI (excludes food and energy) rose 0.6% while it's YoY dropped from 6.5% to 6.2%, also missing it's forecasts of 6.0%.  One of the real reasons behind this drop was due to a big spike in March 2021, which fell off the YoY average.  This is still concerning, especially when you look at the MoM data.  Some Economists are now calling on the Fed to hike rates at 0.75%, which they announced last week was off the table.  It will be interesting to see if the Fed has a change of heart, so when they have any more upcoming speeches, then you know people will be listening for any hints of a 0.75% hike possibility.  Stocks are down...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  There are no economic data to report today.  The Markets are preparing themselves for tomorrow when the CPI is released.  This will have the biggest impact this week, as Investors are looking for confirmation that inflation has peaked.  Stocks have been selling off over the past few days in preparation, as Investors are concerned over the Fed's tightening policy and they haven't seen signs of inflation cooling down quite yet.  This has helped MBS to some degree, as it's up again today (+48bps).  Mortgage Rates improve again today.  Yields have also fallen down to 2.95% (after it was as high as 3.17% yesterday).  Be careful, as we haven't really seen more than 2 days of gains, only to find them wiped out on the 3rd day with a big loss.  We're approachi...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Wholesale Inventories maintained their pace with 2.3% increase for March.  There's not a lot of Economic Data to be released this week, so most focus will be on the upcoming inflation data by CPI and PPI.  Investors will be looking for possible acknowledgement that Inflation has peaked.  There's still real concern over inflation, which is what's dictating the Markets.  Investors are concerned that the Fed may not be doing enough (especially when they announced the 75 bps hike is off the table) and the probability of an economic slowdown (while inflation is still high), which will lead to the worse case scenario (Stagflation).  Stocks are Down today and Investors have shifted investment dollars over to Bonds/MBS.   MBS is currently Up 33bps, as Mortgag...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Average Earnings rose only 0.3%, coming in under forecasts.  Hopefully, this is an indicator that wage inflation is stabilizing.  Non-Farm Payrolls reported 428k new jobs for April, beating expectations!  However, the Unemployment remained unchanged at 3.6%; likewise, the Average Work Week (hrs.) remained unchanged at 34.6 hours per week.  One piece of data that didn't make it onto the graph, was the Labor Participation, which dropped 0.2% to 62.2%.  This is something to monitor, as there may be some concerns of another Great Resignation.  Both Markets (Stocks and MBS) are reacting similarly.  Yesterday, Investors were very concerned over the Labor Cost and Productivity data; and today's data is a little mixed and being treated somewhere in the middle...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Bank of England's announcement started off our calendar today, as they hiked their rates up by 0.25%.  Meanwhile, Initial Jobless Claims rose back up to 200k.  Challenger Layoffs announced an additional 3 million job layoffs to come.  However, the Continuing Claims dropped about 20k from last week.  Labor Costs rose 11.6% in it's initial report for Q1, while Productivity dropped by 7.5%.  This latter portion is concerning; especially the Labor Costs, as this is inflationary data.  After the Fed provided their announcement yesterday, both Markets rallied quite well (DOW was up over 900 points and MBS closed Up over 60bps).  However, today, that rally quickly disappeared and more losses are mounting.  DOW is down over 1k so far today and MBS is Down...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  ADP reported 247k new jobs for Private Payroll in April, which came in much lower than forecast.  ISM Non-Manufacturing PMI dropped from 58.3 in March to 57.1 in April, which it slowed with the Services sector, like it's counterpart in Manufacturing in yesterday's report.  Later today, the Fed will provide their announcement after it's completion of the 2 day FOMC.  It's widely expected for them hike rates by 50bps and begin the Balance Sheet reduction.  Investors will listen to how aggressive of approach the Fed will take going forward.  Both Stocks and Bonds opened lower for the day.  MBS are currently off their morning lows; however, still Down around 13bps.  Mortgage Rates are priced a little worse today.  This trend started yesterday afternoon, a...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Factory Orders exceeded expectations for March and rose by 2.2% on forecasts of 1.1%.  Also, February's data was revised from -0.5% to +0.1%.  The Fed begins their 2 day meeting (FOMC), which they'll be providing their announcement tomorrow.  It is widely expected they'll hike rates by 0.5% tomorrow, along with plans to implement the Balance Sheet reduction.  Investors will watch for clues as to how they plan to proceed: like how aggressive will they be to reduce the Balance Sheet; and will they hike rates by 0.75% for their June & July meetings or do 4 consecutive 0.5% hikes?  These are the questions that are going through the investors' minds.  Both Markets improved late in the day yesterday, as stocks closed in positive territory and MBS down 17bps...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Manufacturing appears to be weakening, as inflation and supply chain issues mount, as the ISM Manufacturing PMI dropped from 57.1 in March to 55.4 in April.  Anything above 50 is still considered expansion with this index.  A side note, Construction Spending came in underwhelmingly at 0.1% increase for March.  Investors are positioning themselves ahead of the 2 day FOMC, which begins tomorrow and their announcement on Wednesday.  It is expected they'll raise the rates by 0.5% and begin with the Balance Sheet reduction.  There's some recent debate on the pace of the ratehikes, as some are projecting a 0.75% for both June and July meetings; whereas, some believe it will be 4 consecutive 0.5% ratehikes.  Also, they'll be seeking to find out more informat...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  There's a lot of important Economic Data being released today, which I'll touch on some of it after I list the reported data.  Employment Costs (initial) rose 1.4% for Q1.  Personal Income rose 0.5% in March while Consumer Spending rose 1.1%.  The Personal Consumption Expenditure (PCE) rose 0.9% in March, as it's YoY rose from 6.4% to  6.6%.  However, it's Core PCE (excludes food and energy) rose 0.3% as it's YoY dropped from 5.4% to 5.2%.  This is the Fed's favorite gauge for inflation!  The Chicago PMI, which measures the manufacturing activity in the Chicago area, dropped from 62.9 in March to 56.4 in April.  Lastly, Consumer Sentiment dipped by 0.5 to 65.2 in April.  MBS dropped to it's lowest levels right after the PCE data was released.  Investo...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Initial Jobless Claims dropped again to 180k, as Continued Claims have shown signs of continuous declines.  All good news, as people are going back to work!  However, the initial reading for the Q1 GDP reported a drop of 1.4%, after posting an increase of 6.9% for Q4 2021.  This surprised the Markets, as they were forecasting an approximately 1% increase.  The GDP release dropped MBS to it's lowest levels of the day, which was down approximately 30bps; however, the Market has since subsided and is currently trading Down 13bps.  Overall, pricing for Mortgage Rates are a little worse than yesterday's close.  There may be some price improvements on some rate sheets, depending when they released their pricing (if it was during the low of the day, or a...
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