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Redondo Beach, CA Real Estate News

By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  There are no economic data  being reported today; however, the rest of the week will get busy with data from Housing, inflation, retail sales and manufacturing.  There were 2 Fed Members speaking today, whom are voting members, so their words carry weight.  There's still some uncertainty about whether the Fed will hike 0.5% at it's March FOMC, but it appears to be in agreement on the importance of it's Balance Sheet reduction.  But the BIG Headlines are coming out of Ukraine, which it's being reported that Russia will attack on the 16th and satellite images indicate that Russia's troops are now being moved into attack formations.  This has the Markets in a very volatile state with Stocks in the Red.  MBS is in Negative Territory, but it's really fluct...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Consumer Sentiment dropped to a Decade low, to 61.7 in February from 67.2 in January.  This is the lowest number since 2011.  Investors are still uncertain how the Fed will proceed once the March FOMC begins, as they receive mixed messages from the Fed.  MBS closed Down 83bps yesterday.  Like Stocks today, MBS is experiencing some very choppy trading today, as it was Up 35bps a bit earlier, to fall in Negative Territory (currently Down about 6bps).  Lenders are re-pricing their Rate sheets for the worse, as Mortgage Rates continue it's rise.  Yields broke above the 2.0% range yesterday and is Up to 2.05% currently.  Otherwise, it's been a slow day; but the uncertainty to what the Fed will do at their upcoming FOMC is making the Markets very choppy...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The data that we've been waiting all week has come; and it was a little worse than anticipated!  The Consumer Price Index (CPI) rose by 0.6% for the month of January; as did the Core CPI (excluding food & energy).  The YoY for for CPI rose from 7.0% in December to 7.5% in January; and the Core CPI rose from 5.5% to 6.0%.  This data is the hottest last seen since 1982 when Fed Chair Volker raised interest rates all the way to about 18%.  We probably won't see that high of rates, but they are rising.  This adds to the increased probability of the Fed raising it's rate hike in March by 0.5% (in lieu of the usual 0.25% increment).  One thing to note, is that the effect of these hikes doesn't not happen immediately, but approximately 6 months before we fee...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Wholesale Inventory rose by 2.2% in December.  We're waiting on the results of the upcoming 10 year Treasury Auction today, which may have an impact with our MBS Market.  If there's a good appetite for them, as they've gone up since the last auction, then it could have a positive impact for Mortgage Rates.  Tomorrow will be the release of the CPI data, which Investors are awaiting it's release.  Today, Raphael Bostic, whom is a non-voting Fed Board Member mentioned that he expects the Fed to have 3 0.25% point hikes this year, with the possibility of a 4th; and wants to dramatically reduce the Balance sheet.  Meanwhile, Stocks are reviewing the Q4 Earnings Reports.  MBS has been in a fairly wide range within the past half hour of doing this video,...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  There's nothing to report on the Economid Calendar today.  This week will be relatively light!  The biggest data will be reported on Thursday, which will be the CPI report, as Inflation is the most important topic now!  There will be a 3 year Treasury Auction today, but this shouldn't have much impact with the Markets today.  Stocks are Up on Q4 Earnings Reports being released.  However, MBS is Down 20bps, as Investors move investment dollars to Equities.  Mortgage rates are Up, as a result.  Yields continue to spike, as they test a new Technical ceiling.  We're currently at 1.96% and look to challenge the 2.0% threshold sooner than later.Please subscribe to my YouTube Channel at MikesDailyMarketRptAlso, these videos are base on my views and not repre...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  There's nothing to report on the Economid Calendar today.  This week will be relatively light!  The biggest data will be reported on Thursday, which will be the CPI report, as Inflation is the most important topic now!  Also, we'll have some Treasury Auctions this week.  Stocks are in Mixed territory today, as they review Q4 Earnings reports.  MBS is just following suit to the Investors movements, which isn't having much action today.  It's currently Up 5bps, so Mortgage Rates remain Unchanged from Friday's big selloff (closed Down 42bps; however, off from earlier lows of -65bps).  Likewise, Yields remain Unchanged levels too (around 1.91%).Please subscribe to my YouTube Channel at MikesDailyMarketRptAlso, these videos are base on my views and not rep...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Average Earnings rose 0.7% in January; however, Average Work week Hours dipped from 34.7 to 34.5.  The Non Farm Payrolls shocked the Markets today with 467k new jobs in January; and it's December's numbers were revised much higher (from 199k to 510k).  This is why we don't give too much weight to the ADP data!!!!  They don't always correlate!  However, the Unemployment Rate did rise slightly, from 3.9% to 4.0%.  Stocks are Mixed on the data; and MBS was WAY Down (-50bps), but have subsided a little (Down 42bps currently).  This is a situation that Good News is Bad News to the Markets, as the possibility of the Fed raising rates by 0.5% (in lieu of the usual 0.25%) increased for it's March FOMC.  Meanwhile, Yields skyrocketed to just under 1.92%; a...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Initial Jobless Claims dropped 23k from last weeks report to 238k this week's report.  The initial or preliminary look at Labor Costs for Q4 were up only 0.3% after seeing 9.3% in the Q3.  Hopefully, this means that inflation will subside!  Meanwhile, the preliminary look at Q4 Productivity rose 6.6% after a drop of 5.0% in Q3.  The ISM Non Manufacturing PMI dropped from 62.3 to 59.9 in January, as many retail stores, restaurants, etc... were hurt due to the omicron variant.  Lastly, Factory Orders dropped 0.4% in December.  Stocks are down on Facebook's disappointing Quarterly report and it's future forecasts.  Meanwhile, the Bank of England (BoE) raised their rates a 0.25% today; and the ECB primed the Markets for a rate hike at it's next meetin...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The first Jobs data for this week was released and sorely missed it's forecast.  The ADP's Private Payrolls lost 301k jobs last month (in January); and it's December's numbers were revised lower, from 807k to 776k.  Most of this is being attributed to the omicron variant, but it may also be a mixture of the omicron and seasonal work for the holidays.  This was mostly affecting the Services and Goods Industries; and mostly Small Business.  Economists are now lowering their forecasts for the BLS report due this Friday to approximately 150k.  They were expecting about 207k for the ADP report, so you can see how much of a miss it was.  It's been a very volatile morning for both Stocks and Bonds; however, MBS is currently Up 19bps; and slowly approaching i...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The ISM Manufacturing PMI dropped from 58.8 in December to 57.6 in January.  Anything above 50 is considered expansion with this index.  Construction Spending rose only 0.2% in December (missing forecasts of 0.6%).  If you look inside the ISM Manufacturing PMI data, then you will find that there was a big spike with "prices paid", which is concerning the Markets, as this is inflationary data; and inflation is the aforementioned concern (along with the Fed's reaction to it).  This piece of data and comments by Fed's Harker reversed what appeared to be a good day for MBS.  MBS started off higher than yesterday's close, only to drop well into negative territory.  Harker mentioned that the Fed could start off with a 0.5% rate hike in March, which will be ...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Chicago PMI, which gauges manufacturing within the Chicago region, reported an increase to 65.2 in January.  Anything above 50 is considered expansion.  Stocks are trying to improve today, as January was a hard month for them.  The main factor for Investors is the uncertainty of the vague Fed policy changes moving forward in 2022.  There are forecasts of possible rate hikes for each of the next Fed meetings, but there's also the possiblity of an increase in the increment of the rate hike.  Typically, the increments are based on 0.25%, which possibly could move to 0.5%.  Just recently Atlanta Fed Bostic stated that he is in favor of 0.5% rate hike over 3 meetings; and a few others (like SF's Daly and KC's  George were more vague on specific moves t...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  We have several important data to report from the Economic Calendar today.  We'll start off with the Employment Costs, which rose 1.0% in the 4th Quarter.  This has been an important component for inflation.  Personal Income rose 0.3% in December; while, Consumer Spending dropped 0.6%, which is being attributed to the omicron variant.  The Personal Consumption Expenditure (PC) rose 0.4% in December with it's YoY rising from 5.7% in November to 5.8%.  The Core PCE (which excludes food and energy) rose 0.5% in December; while, it's YoY rose from 4.7% in November to 4.9% in December.  The Core PCE is the Fed's favorite gauge for for inflation; and it's also called "real" inflation.  Lastly, the Consumer Sentiment dipped from 68.8 in December to 67.2 in J...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  We have several important economic data being reported today, which we'll start with the initial Q4 GDP, which came in pretty hot, at 6.9%.  However, Durable Goods dropped 0.9% in December; but, if you exclude Transportation (which have large numbers and can skew the overall data), then it rose by 0.4%.  The weekly Initial Jobless Claims dropped by 30k from last week's numbers to 260k; however, we did see Continuing Claims rise from last week too.  Pending Home Sales dropped 3.8%, which was larger than forecasts, and that led to a 117.7 seasonally adjusted annualized units for the month  of December.  After the Fed's announcement yesterday, then both Stock and MBS Markets had a big selloff.  MBS dropped 63bps.  It was more of what Chair Powell didn't ...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Even though we're awaiting the Fed's Announcement at 11:15am PST, we still have New Home Sales data for the month of December, which rose by 11.9% to 811k seasonally adjusted annualized units.  Markets are awaiting the Fed's Announcement and positioning themselves ready for anything.  Stocks dropped a bit last week, which saw NASDAQ enter Correction Territory.  The disappointing Q4 Earnings Reports, the escalating tensions with Ukraine/Russia, high inflation are all factors too, but Investors appear to be more focused on policy stance moving forward.  The taper should end around March, which it's being widely expected to see our first rate hike thereafter; then further reduction of the Balance sheet 3-6 months later.  There are some investors hoping l...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Today, we have 2 HPI (Home Price Index) reports.  The first is Case Shiller HPI, which gauges the 20 largest US Markets.  It rose 1.2% MoM in November and dipped 0.2% to 18.3% YoY.  However, FHFA HPI rose 1.1% MoM in November and it's YoY rose 0.1% to 17.5%.  FHFA follows conforming loans.  Lastly, Consumer Confidence dipped from 115.2 in December to 113.8 in January.  The 5 year and 7 year Treasury Auction went well (video was just completed shortly after Auction results).  However, while creating the video, we hadn't seen much reaction.  The FOMC started their 1st day for their 2 day meeting, which we'll receive their announcement tomorrow.  All eyes and ears will be waiting for the announcement, as most investors are on edge; and Markets are highly...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Markit PMI released both their Manufacturing and Services data for the month of January.  Anything above 50 is considered expansion.  Manufaturing dropped from 57.7 in December to 55.0 in January; and Services dropped from 57.6 in December to 50.9 in January.  We'll need to keep our eyes on this this (especially Services), as both industries dropped and may be trending in this direction.  Tomorrow will begin the FOMC, which will be the highlight in focus this week.  Also, later this will be the Fed's favorite gauge for inflation (PCE) will be released.  The Markets are preparing for the Fed's Announcement this coming Wednesday.  Stocks are dropping today, as they prepare, but also, taking some of it's queue from disappointing Q4 Corporate Earnings...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Leading Economic Indicator Index rose 0.8% in December, after it's November's number was revised from 1.1% lower to 0.7%.  Next week will provide plenty of data, such as Housing data, GDP and Consumer Inflation (with the Fed's favorite gauge for inflation -PCE).  Also, Investors will be waiting on the FOMC to finish on Wednesday and listen for any new information on the Fed's tightening policy, including it's reduction of it's Balance sheet.  Meanwhile, Q4 Corporate Earnings are being released and it seems like they're underperforming, as stocks not only are declining for today, but the week.  A few indices are approaching correction territory.  MBS is currently Up between 16-19bps, which will be enough for Lenders to come out with better pricing ...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Philly Fed Index rose from 15.4 in December to 23.2 in January. This index gauges the business/manufacturing in the Philadelphia region.  This is good news based on the contraction in the NY region that was released earlier this week.  Jobless Claims spiked to 286k last week, which should not be a surprise, as this is rather common at this time of year.  This is due to the seasonal workers (from the Holidays) being let go from their jobs.  Lastly, the Existing Home Sales dropped 4.6% in December, as it went from 6.48 seasonally adjusted annualized units in November to 6.18 million in December.  Stocks are Up today as Yields seem to be showing some improvement and more companies release their Q4 Earnings Reports.  We'll touch on Yields shortly!  Me...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The MBA Mortgage Loan Activity Report released their data (which comes out every Wednesday) and indicated that Home Buyers jumped this past week, as Mortgage Rates continue to rise.  Seems like rising Mortgage Rates are incentivizing Home Buyers to get off the fence; however, they're disincentivizing refinances, as we saw a drop week-over-week.  Housing Starts rose from 1.678 million seasonally adjusted annualized units in November to 1.702 million in December.  A 1.4% rise month-over-month.  Also, Building Permits (future Housing Start) rose 9.1%, which went from 1.717 million seasonally adjusted annualized units in November to 1.873 million in December.  It will be interesting to see it's January's numbers, as we found out yesterday that there was a...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Empire State Index, which measures manufacturing around the NY region, posted a -0.7 for January, which is the first time in awhile that we've seen any contraction in manufacturing in the NY region since the beginning of the lockdowns during the Pandemic (March of 2020).  Meanwhile, higher interest rates are concerning Home Builders' Confidence, as the NAHB Home Builder Index dropped from 84 in December to 83 in January.  Meanwhile, both Stocks and Bonds are selling off!  NASDAQ is being highly affected by the rise in Yields due to it's growth stocks losing it's higher profits due to higher Yields.  An M&A was announced, which Microsoft is looking to buy Activision Blizzard to create 3rd largest Gaming company.  And Q4 Corporate Earnings reports a...
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