We're basically on hold until Tuesday, when the FOMC(Federal Open Market Committee) meets to discuss our future interest rate policy.  Rumors have gone from 1/4 to 1/2 point decrease in the Federal Funds Rate.  The question is whether this will be of any real value to the market.  A 1/4 point decrease seems to be factored in.

Items of note:

• Report in the Financial Times on Wednesday that the Fed is considering a "special purpose funding facility" otherwise called a bailout, since adding liquidity through the normal channels has done little to reduce the 30-180 day libor rates. (Of interest since many mortgages that are due to adjust soon are tied to the libor rate).  It also said that possibly the Bank of England along with the ECB(European Central Bank) would set up these programs to aid non-bank entities.

• Weekly jobless claims fell last week, mostly attributed to the holiday weekend.

• Retail sales came out at a less than expected increase of .3%.  Of more interest however was that sales, ex-autos,  fell by .4%.  The consumer has definitely pulled back.
  

More to come on Sunday when I put out the Week Ahead post!!!

Local Housing Update:

Period 8-31-07 to 9-14-07          Average new listings per day            Average closed sales per day

Burbank                                                  5                                                                             2.3 

Toluca Lake                                             .73                                                                         .33

Studio City                                             3.4                                                                           1.6 

Lots of price reductions in each of the areas reflecting the challenges of finding qualified buyers and having proper  pricing metrics in place! 

My website is under construction, but please feel free to visit me at anaconnell.com!