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Redondo Beach, CA Real Estate News

By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  As mentioned in yesterday's report, this week is light with Economic data, as today is one of the days without anything with merit.  So, the impact will come mostly from headline news and geopolitical this week.  Today, stocks are down on renewed concerns over the retail industry, as Target reiterated it's profit outlook and began taking preventive measures.  This set the mood in the Markets.  This is helping Mortgage Rates today, as the MBS is currently Up between 38-43bps.  Yesterday, we lost 53bps and closed below the 25 DMA; so, we are regaining most of the losses that were incurred from yesterday's trading this morning and pushing back above the 25 DMA.  We'll need to see if it can hold.  Also, even if we break above the 25 DMA, then within next ...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  There are no economic data to report today; and the week ahead is pretty light.  However, Friday, the CPI will be released and this could have a big impact with the Markets.  The Markets are continuing to assess the Fed's Policy with the current and future economic landscape; and monitor any more of the talk about reducing tariffs, as a method to bring down inflation.  As I noted in the video, prior to the spike with inflation, the tariffs didn't seem to have much impact with inflation; so, it seems to reason that this response may not really do much.  Stocks are Up today after another bad week, which Investors are buying on the Dip today.  Meanwhile, this has pulled investment dollars from MBS, along with more Corporate Bonds taking up more of the in...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Bureau of Labor Statistics (BLS) released several Jobs reports today for the month of May.  They reported that Average Earnings rose 0.3%, while the Average Workweek remained Unchanged at 34.6 hrs.  The Non-Farm Payrolls came in with 390k and an upward revision of 8k to April's data.  Unemployment Rate remained Unchanged at 3.6%.  Lastly, the ISM Services PMI dipped to 55.9%, which is still in expansion territory.  Stocks are in Negative Territory, as they watch the data being released, listening to Fed Members on Fed Policy and CEOs with some pessimistic outlooks.  MBS dropped on the Jobs data, but the ISM data gave it a little boost.  Currently, MBS is Down 19 bps from yesterday's close.  This is enough for Lenders to have less favorable pricing...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  ADP revised their April report lower to 202k (off from 247k).  It's May report came in (underwhelmingly) at 128k.  The Initial Jobless Claims reported 200k applied for first time benefits last week.  Labor Costs for the first Quarter were revised higher by 1% to 12.6%.  Although, we like to see people make more money, it's at the cost of higher inflation!  Productivity for the first Quarter was revised slightly better to -7.3% (from -7.5%).  Factory Orders only rose 0.3% in April, which is off from it's forecasts of 0.7%.  Overall, not a great day for economic data.  Microsoft announce a bleak forecast, which had the Markets listening.  We have a few Fed Speakers talking today; which Vice Chair Brainard did speak already and indicated that she doesn't...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The ADP Private Payrolls would normally be released today, but it was rescheduled for tomorrow; along with the Initial Jobless Claims.  Constructions Spending rose only 0.2% for April, as forecasts called for 05%.  The ISM Manufacturing PMI rose to 56.1%.  This data is showing investors that the economy is doing well, so the Fed should continue it's course of tightening policy.  Fed Member Bostic cautioned the Markets that a pause after the next few rate hikes doesn't mean the Fed will bend to the Markets whims, as it fights to control inflation.  There will be a few other Fed Members speaking today, so the Market could move accordingly.  Meanwhile, the Fed will begin their Balance Sheet reduction today, which will add more pressure to Mortgage Rates,...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  This week will be about Jobs data, starting tomorrow with the ADP and ending on Friday with the Non-Farm Payrolls and Unemployment Rate from the Bureau of Labor Statistics.  Today, we have 2 Home Price Indices (HPI) for the month of March.  The Case Shiller HPI rose by 2.4% MoM and 21.2% YoY.  This index measures the 20 largest cities in the US.  The FHFA HPI rose by 1.5% MoM and 19.0% YoY.  This index measures the homes with conforming loans.  Manufacturing picked up in the Chicago region, as the Chicago PMI rose to 60.3 in May.  Lastly, the Consumer Confidence dipped to 106.4, which still beat the 104.0 forecasts.  Stocks are Down today, as well as, MBS is Down 42bps (off from earlier lows of approximately 52bps).  News of China lifting some of it's...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Consumer Spending's March data was revised higher by 0.3% to 1.4%; while April it rose by 0.9%.  However, it's counter-part, Personal Income, only rose 0.3% in April.  Consumer Sentiment dropped from 59.1 in April to 58.4 in May.  Now, the big news!  Personal Consumption Expenditure (PCE) rose only 0.2% in April, as it's YoY dropped from 6.6% in March to 6.3% in April.  The Core PCE, which excludes food and energy, rose 0.3% in April while it's YoY dropped 0.3% to 4.9%.  The Core PCE is the Fed's favorite gauge for inflation, which is why it is highly sensitive data and can create a lot of volatility in the Markets.  Today's numbers helped the Markets, as Investors are feeling a bit more optimistic about inflation peaking.  Stocks are Up today; and ap...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  Initial Jobless Claims dropped by 8k from last week's data to 210k; however, Continued Claims rose from 1.315 million to 1.346 million from last week's report.  The 2nd preliminary data report from GDP worsened by 0.1% to showing a contraction of 1.5% for Q1.  Pending Home Sales dropped by 3.9% in April to 99.3k seasonally adjusted units.  There was a 7 year Treasury Auction earlier today, which went very well; and helped to temporarily help MBS.  Stocks are in Positive Territory today, as Investors review economic data, after effects of the Fed's Minutes (released yeterday) and continued Corporate Earnings releases.  Investors were good with the Fed's Meeting and seemed to be pleased that the Fed may be pausing after July's rate hike; and a few of th...
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By Mike Bjork
(Evolve Bank & Trust)
http://MikesDailyMarketReport.com:  The Durable Goods Orders had a lower revision to it's March report, as it went from 1.1% to 0.6%.  It's April's report underwhelmed at 0.4% after forecasts were calling for 0.6%.  Later today, the FOMC Minutes will be released, which could impact the Markets in the 2nd half of the trading day.  Investors are worried over the Fed's tightening policies and high inflation, along with the war in Ukraine and lockdowns in China.  The concern is regarding the possibilities of the economy going into a recession, or worse yet, stagflation.  Corporate Earnings are reiterating those concerns with their worsening profit margins and their outlooks.  Stocks are currently in Mixed trading range; whereas, MBS is in relatively Unchanged levels (ranging between -2bps a...
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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, Mortgage Loan Originator, Marin County
(US Bank)
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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