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Posts tagged ‘L.A. home for sale’

1
Oct

Economic Update for the week ending September 26, 2015

 

Stocks rally on Friday to end the week just slightly down – The stock markets have been volatile for the last six weeks mostly due to worries about the effects from slowing growth in China, European weakness, and and uncertainty about the outlook for interest rates. Early in the week markets dropped as more data came in showing China’s economy has continued to slow. One report Wednesday showed that their manufacturing had slowed to the lowest level in 6 years, during the peak of the financial crisis. However; stocks made up much of their loses on Friday after the Commerce Department reported that 2nd quarter GDP had been revised upward, consumer spending was revised upward, and Fed Chairperson Janet Yellen gave a more optimistic view of the economy. Her assessment included that The Fed does still intent to raise rates this year.  Uncertainty over rates, and The Fed’s decision last week to leave rates at near zero levels, made experts fear that The Fed felt the economy was weaker than experts believe. Janet Yellen’s speech at the University of Massachusetts yesterday seemed to put investors’ minds at ease when she reiterated that growth was strong and that a rate increase was coming. US airlines also reported that profits were up 53% in the second quarter mostly due to lower fuel prices and steady travel demand. It is the best year for the airlines since 2007. The Dow Jones Industrial Average closed the week at 16,314.67, almost unchanged from last week’s close of 16,384.79.  The S&P 500 closed the week at  1,931.34, down slightly from last Friday’s close of 1,958.03. The NASDAQ closed the week at 4,686.50, down from last week’s close of 4,827.23. 

Mortgage rates just under 4%  –  The 30 year fixed rates ended the week around 3.875% for loans up to $417,000, and around 4.00for loans over $417,000.  The 15 year fixed rate loans are about 3.25% for loans up to $417,000, and around 3.375% for loans over $417,000. The 5 Year-ARM rate is around 3.00%  and 1 Year-ARM mortgages are about 2.50%.  

Primary Mortgage Market Survey®

Freddie Mac surveys lenders each week on the rates, fees and points for the most popular mortgage products.

September 24, 2015 30-Yr FRM 15-Yr FRM 5/1-Yr ARM
Average Rate 3.86 % 3.08 % 2.91 %
Fees/Points 0.7 0.6 0.5

Next Rate Update on October 1, 2015

Weekly Survey Archive

Freddie Mac Multi-Indicator Market Index®

MiMi measures the stability of local housing activity by combining current local market data with Freddie Mac data for all states, the top 100 metros, and the nation.

Treasury Bond yields slightly lower this week – The 10 year Treasury bond yield closed week at 2.17%, up slightly from 2.13% last Friday.  The 30 year treasury bond yield closed Friday at 2.96%, almost unchanged from last week’s close of 2.93%. Mortgage rates follow bond yields so these are closely watched.

Consumer confidence reading the edges up in September- The University of Michigan final reading on consumer sentiment for September moved higher.It ended the month at a reading of 87.2 from an initial reading of 85.7 at the beginning of the month. The average reading since its inception has been 85.3. The average reading during the 5 recessions since its inception has been 69.3. During non-recessionary years the average reading has been 87.5, which is right about where we are. Consumer sentiment is important because consumer confidence is so closely tied to consumer spending which accounts for nearly a third of the economy.

Second quarter GDP revised upward – The Commerce Department said Fridaythat the second quarter gross domestic product showed a growth rate of 3.9%. This was higher than their initial estimate of 3.7%. The Commerce Department also said Friday that consumer spending rose 3.6% during the quarter up from an initial estimate of 3.1%.

Pending home sales decline in August, but numbers are still above last year’s levels – The California Association of Realtors reported that pending home sales fall 8.7% in August from July. While monthly pending home sales were down, year over year pending home sales in August were still up 12.8% from August 2014.  It was the 10th straight month of year over year increases in the number of pending sales, and the 7th straight month of double-digit year-to-year gains.

23
Sep

Will You Choose the Right Home Inspector? – Part Two

In the previous post, I showcased the fine art of hiring a home inspector when considering an L.A. home for sale. But that powerful set of insights put you only as far as the fifty yard line. To run the remaining distance to your goal, you’ll need to gallop your way through these additional steps.

What’s the Buzz. Is the buzz on your candidate smooth, harmonious, and loud. Only checking references will clue you into this info. Ask the inspector you’re considering for customer contact info. Then follow through with a thorough investigation that reveals their satisfaction levels. Remember, connect with homeowners who’ve occupied their property for at least a few months. Occasionally, issues rear their beastly heads only after some time has gone by.

Belonging is Believing. Not every capable home inspector is a member of a professional association. Nevertheless, belonging to one definitely can say a mouthful about competency and reliability. That’s because these organizations offer members a number of bonuses in the form of ongoing education and information. I mean, what would you think of a physician who didn’t belong to the AMA?

The Oops Factor. As the wise bard sad, ‘to err is human’. Since the vast majority of home inspectors are members of this species, sometimes mistakes happen. Be sure to find out if the inspection company has ‘errors and omissions insurance’. If not, you could be stuck footing the bill for an unexpected problem, no matter how mind-bogglingly stellar the inspector’s reputation.

If you’d like more info about choosing a home inspector, feel free to reach out to me.  Or just fire your questions or comments into the box below. There’s always a vacancy.

And, of course, if you want to be connected to the latest info and opportunities in the Beverly Hills real estate market, I’m ready to make it happen.  Call or email today.

Back soon.

Terre Steinbeck

terre.steinbeck@gmail.com

(310) 666-4094  DIRECT

(310) 724-7100   OFFICE