NELA Live

Los Angeles Mortgage Rates Report- August 28, 2007- Lock All Loans

Our Los Angeles Mortgage Rates Report from last week advised clients to float their loans.  We still maintained a lock-in stance for all non-conforming and jumbo loans as that market is changing daily.  Until Wall Street investors set the market for jumbo loans, we maintain that stance.

Los Angeles home buyers saved money by listening to that advice.  Rates decreased an average of .125% this past week.  Now, we think it's time to reap that reward and lock-in interest rates for all loans at application.  Mortgage bonds are trading near their 200-day moving average which means that the next 2-3 days may show the absolute best rates in 6 months on the fixed-rate mortgage side.  We think there is more risk to rates rising before the Fed meeting in September than there is opportunity for lower rates during that period.

One of our portfolio lenders is offering an annual ARM, interest only,  at 5.5% with an APR of 6.44%.  This means that the first year is locked in at 5.5%, the second year at 6.44%, and then the loan becomes a LIBOR-based ARM.  There is no pre-payment penalty associated with this loan.  We particularly like this loan product because we believe that interest rates are in a 12-24 month downward trend; we think there will be some opportunities to refinance to a fixed rate loan as low as 5.5% in the next two years.  Borrowers with a short-term horizon (meaning they may consider a move in 12-24 months) should ask for more information.  Admittedly, this is a teaser rate but sometimes teaser rates have the right application when the hold timeframe matches up to the interest rate term.

Mortgage Interest Rates*

Rates as of 08/27/2007:

Conforming APR Payment per $1,000 Jumbo APR Payment per $1,000 5-Yr. Interest Only 6.5% 6.572% $5.42 7.25% 7.350% $6.04 10 Yr Interest Only 6.625% 6.744% $5.52 7.25% 7.411% $6.04 7/! ARM 6.625% 6.697% $5.52 7.25% 7.350% $6.04 30 Year Fixed 6.125% 6.195% $6.08 7.5% 7.602% $6.99 Annual ARM 5.75% 5.819% $5.84 6.125% 6.219% $6.08 HELOC 8.25% 8.330% $6.88 8.25% 8.357% $6.88 5 Yr ARM- Amo 6.375% 6.446% $6.24 7.125% 7.225% $6.74

*Rates are subject to change due to market fluctuations and borrower's eligibility.

MARKET STATS 08/20 - 08/26

Market activity in zip codes 90031, 90032, 90041, 90042, 90065 for August 20 through August 26, 2007 as reported in I-Tech MLS

New listings entered

Price reductions

Reported pending

Reported sold and closed

OPEN HOUSES FOR SUNDAY AUGUST 26

Listing of Sunday's Open Houses from I-Tech MLS

Listing of Sunday's Open Houses from Combined L A Westside MLS

Old L.A. (HP) Farmer's Market Report

Whoever came up with the phrase “eat your colors” must have been a farmers market devotee. It’s a good way to eat and a fun way to shop, especially in the middle of summer when the riot of colors at the market is at its peak.

This week I was enthralled with all things purple, especially gorgeous purple potatoes. With these beauties, I made a delicious, warm potato salad, including red onions, dark ruby red heirloom tomatoes and bright, fresh basil – each item procured at the market. Topped off with a little smoked salmon for protein and flavor and it was an entirely satisfying meal.

My latest obsession is a book I just got my hands on called “12 Best Foods Cookbook” with over 200 recipes for using them in every day meals. Of the “12 Best”, over half of them can easily be gotten from the farmers market, including: blueberries (when in season), sweet potatoes, spinach (nearly always available), broccoli (plenty of good looking heads at the market last week), tomatoes (of all shapes, sizes and colors!), walnuts (also at the market) and onions (like the tomatoes, available in stunning variety). Throughout the book, the recipes incorporate many other “super-healthy” fruits, veggies and nuts easily picked up at the market: strawberries, avocados, grapes, greens of all kinds, red and yellow peppers, corn, melon and various squash. OK – typing that list made me hungry, so I’m headed off to the kitchen to put together my next meal.

I am away next week, so you won’t see a report from me for the August 28 market, but I will be back to see you all at the market in it’s new location on Avenue 58 on September 4th. Until then, stay healthy and enjoy the remains of the summer.

ML

40th Anniversary - Summer of Love Celebration at Heritage Square

Heritage Square Museum remembers a watershed year in recent history when Flower Power was in full  bloom, hippies hung out on the Sunset Strip, and there was a Love-In in Griffith Park. The "happening" is Saturday August 25th from 4:00 until 7:00 PM.

Tickets for this fundraising event are $25 per person. There will be food, face painting, dance contests, hippie "costume" contests, give-aways, and of course, music. K-EARTH-101 radio will be there,  broadcasting all the "oldies", while special musical guest "The Ravelers" put their own spin on the 60s.

40 years ago, young people converged on Los Angeles and San Francisco in a social experiment that  changed society. Victorian houses were a backdrop for the activities and events of that era. At that time, no one was interested in Victorian architecture--it was not considered chic or desirable, but it provided cheap housing for the hippies, who embraced its uniqueness as part of their counterculture ideals.

From the Monterey Pop Festival, the publication of Rolling Stone Magazine, the first airing of Laugh-In, to the Vietnam and 6-Day Wars, 1967 was a year that saw strangely diverse events. Against a backdrop of war protests and rock and roll music, the youth of America tried to maintain a vision of free-spirited idealism. Although the Summer of Love marked both a beginning and an end, it is remembered as a milestone of hippie culture. Forty years later, the hippies have become the "Establishment" and the Summer of Love a distant memory of youthful idealism. There are many parallels between then and now. Get out your love beads and be sure to wear some flowers in your hair!

Heritage Square Museum
3800 Homer Street , Los Angeles,90031

Admission: $25.00
For more information call: 323-225-2700 ext. 224
http://www.heritagesquare.org

Los Angeles Mortgage Rates Report- August 21, 2007

Los Angeles home buyers can take a breather.  Our advice to lock rates at application these past two weeks was sound.  Although treasury bond yields dropped, mortgage-backed securities yields rose in fear of more defaults.    It was understanding this conundrum that prompted our lock advice.

Today, we think it is safe for a Los Angeles mortgage applicant to float their mortgage rate; there may be some room for improvement this week.

The liquidity crisis extends past our borders:  A large British insurance company may have been forced to borrow from the Bank of England and a potential German banking crisis abounds.

Senator Dodd just met with Fed Chairman Bernanke.  He queried whether the Fed was willing to use any and all available resources to avert a mortgage liquidity crisis and seemed satisfied with the Fed Chairman's response.  That may have averted Congressional interference (we hope).  Senator Dodd is continuing to petition the President to raise the statutory limits of conforming loans ($417,000) as an emergency measure.  Californians would benefit from this prospect because conforming loans offer lower rates and more loan options than jumbo loans.

Rates as of 08/21/2007:

Conforming APR Payment per $1,000 Jumbo APR Payment per $1,000 5-Yr. Interest Only 6.625% 6.697% $5.52 7.25% 7.350% $6.04 10 Yr Interest Only 6.75% 6.869% $5.63 7.25% 7.411% $6.04 7/! ARM 6.625% 6.697% $5.52 7.25% 7.350% $6.04 30 Year Fixed 6.25% 6.321% $6.16 7.5% 7.602% $6.99 Annual ARM 5.75% 5.819% $5.84 6.125% 6.219% $6.08 HELOC 8.25% 8.330% $6.88 8.25% 8.357% $6.88 5 Yr ARM- Amo 6.5% 6.572% $6.32 7.125% 7.225% $6.74

*Rates are subject to change due to market fluctuations and borrower's eligibility

Old L.A. (HP) Farmer's Market Report

Big news at the market! It’s going to be moving, just slightly, over to Avenue 58, between Marmion Way and Figueroa, where it will be visible from both the Gold Line and passing traffic on Figueroa. Hopefully, this will bring new shoppers and vendors to the market, so this local institution will continue to grow and thrive. As an added bonus, parking will be available in the lot where the market has been set up. All of this takes place as of September 4, so come check it out at the grand re-opening.

My big score at the market this week was a basket of fresh, black Mission figs. Delicious! You can eat them by themselves, chopped up in a salad or on ice cream; or make them into an elegant appetizer......Who needs a fancy Westside restaurant when you can doctor up these jewels at home? Try this classic, which is served all over town at high-end hot spots, but is simple to make:

Bacon wrapped figs stuffed with goat cheese:
http://www.epicurious.com/recipes/food/views/105402

You can even find the goat cheese, the lemons, the mesclun salad and the olive oil needed for this recipe at the market!

We are continuing to enjoy the usual summer bounty, tree-ripened stone fruits, fresh sweet corn, plump and juicy tomatoes…..Summer never lasts long enough and my plan is to eat as much as possible of these healthy and tasty treats while they are still here in abundance.

The market will be found this Tuesday from 3- 8 p.m. near the Highland Park Gold Line station at Marmion Way, between Avenues 57 & 58 (one block west of Figueroa). In Seth’s words: “Please stop by the market for fresh, field-ripened, high quality produce from local farmers and spend time with your friends, neighbors and other community members.”

See you there. ML

MARKET STATS 08/13 - 08/19

Market activity in zip codes 90031, 90032, 90041, 90042, 90065 for August 13 through August 19, 2007 as reported in I-Tech MLS

New listings entered

Price reductions

Reported pending

Reported sold and closed

PROPOSED GARVANZA INTERIM COUNTROL ORDINANCE (ICO)

PROPOSED GARVANZA INTERIM COUNTROL ORDINANCE (ICO)
CASE NO. CPC 2007-3447-ICO
ENV-2007-3460-CE
COUNCIL DISTRICT NOs. 14, 1
NORTHEAST PLAN AREA

On August 23, 2007, the City Planning Commission will conduct a Public Hearing regarding the proposed Garvanza Interim Control Ordinance (ICO).

CITY PLANNING COMMISSION
Date: Thursday, August 23, 2007
Time: after 1:00 p.m.
Place: Van Nuys City Hall
Council Chambers, 2nd Floor
14410 Sylvan Street
Los Angeles, CA 91401

PROJECT LOCATION
The proposed Garvanza ICO is generally bounded by Pasadena City limits to the north; Metro right-of-way bridge to the south; Eastside of Avenue 66 to the east; and Eastside of Figueroa proceeding to the  Westside of Avenue 63 at York to the west.

PROJECT DESCRIPTION
The establishment of an Interim Control Ordinance (ICO) to temporarily prohibit the issuance of building and demolition permits for the erection, construction, demolition, addition to or alteration of any  building or structure located in the Garvanza neighborhood. The ICO shall include an Urgency Clause  making it effective upon publication and shall run for one year with two six month extensions by Council Resolution or until the adoption of appropriate land use regulatory controls.

Rogelio Rodriguez
Field Deputy

First Council District
Office of Councilmember Ed P. Reyes
163 South Avenue 24, 202
Los Angeles, CA 90031

213 485 0763 Of
213 485 8908 Fx

OPEN HOUSES FOR SUNDAY AUGUST 19

Listing of Sunday's Open Houses from I-Tech MLS

Listing of Sunday's Open Houses from Combined L A Westside MLS

OPEN HOUSES FOR SATURDAY AUGUST 18

Listing of Saturday's Open Houses from I-Tech MLS

Listing of Saturday's Open Houses from Combined L A Westside MLS

Los Angeles Mortgage Rates Report: August 15, 2007

Good news for interest rates was released today.  The Consumer Price Index, which is a measure of the prices for goods and services people buy, was moderate and in line with Wall Street's expectations. 

Los Angeles home buyers should be cautiously optimistic about the possibility of lower rates in the near future.  Optimistic because inflation appears to be tempering.  Cautious because the extent of mortgage delinquencies is still unknown.

It is because of that great unknown that we still advise Los Angeles home buyers to lock their interest rates at application.   

Good news for interest rates was released today.  The Consumer Price Index, which is a measure of the prices for goods and services people buy, was moderate and in line with Wall Street's expectations. 

Los Angeles home buyers should be cautiously optimistic about the possibility of lower rates in the near future.  Optimistic because inflation appears to be tempering.  Cautious because the extent of mortgage delinquencies is still unknown.

It is because of that great unknown that we still advise Los Angeles home buyers to lock their interest rates at application.   

Old L.A. (HP) Farmer's Market Report

This week at the farmer’s market, I picked up my usual favorites: avocados (back at the market in abundance!), tomatoes, fresh beans, huge bunches of scallions and cilantro, and tree-ripened summer stone fruits. In addition to the usuals (fragrant tangerines, peaches and pluots) I discovered an entirely new fruit that I’d never heard of before. It’s called sapote and is apparently popular in South America. I turns out that parts of Florida and California provide excellent growing conditions for this fruit. This type is a white sapote (the flesh inside is white, but the skin outside – which is thin and perfectly edible – is bright green, mellowing to yellow as it ripens).

The vendor (who also had delicious avocados, by the way), described the fruit as something like a cross between a pear and an avocado. I bought the fruit while it was still hard, but let it ripen over several days. It is ready when it gives slightly to pressure from your finger, just like avocados and pears. Others describe the taste as custardy, creamy, buttery and silky, like a cross between a banana and a peach. It does indeed have a very smooth, creamy texture. The flavor is very, very mild, with a hint of pear. It is delicious with a little squeeze of lemon or lime – the acid is a nice contrast to the richness of the fruit.

It is not easy to find recipes for sapote. Epicurious (my usual go-to website for recipes) comes up short. But… Google to the rescue. Here is a paraphrase of a recipe for a sapote shake, to help you cool off this summer:

A cup of sapote, peeled and seeded (the fruit has very few seeds)
A cup of yogurt (plain or vanilla would be good)
3 T of honey
½ cup of milk
dash of ground cinammon
cracked ice (to taste)

Put all in the blender and blend until smooth – drink immediately.

The market is found every Tuesday from 3- 8 p.m. near the Highland Park Gold Line station at Marmion Way, between Avenues 57 & 58 (one block west of Figueroa). In Seth’s words: “Please stop by the market for fresh, field-ripened, high quality produce from local farmers and spend time with your friends, neighbors and other community members.”

See you there. ML

Los Angeles Mortgage Rates Report- August 13, 2007

Los Angeles home buyers , should lock their loans at application. Tumultuous credit markets and a potential bounce in the stock market lead us to believe that, rates, for the near-term, may have bottomed. We think there is more risk to "holding out for the better rate" than there is in "accepting what you get and moving on".

This is Joe's analysis,  on his weblog:

The changing credit markets are putting some pressure on the Fed and stirring much debate on whether or not interest rates should be cut. There is an increase concern of inflation with this monetary injection into the markets; however, also an ongoing unease with the sub-prime mortgage problems throughout the economy. The debate falls as to whether or not a rate cut and ‘bailout’ for risky investors should take place. This leaves much to question and an anticipation for the Fed’s next move on September 18^th.

If you clicked over to Joe's weblog, you'll see that he spent the summer learning our business.  Joe's a Villanova Business School senior and neighbor in Solana Beach.  Coincidentally, we share the same last name- nope, no relation.

So...lock those loans up; Joe's correct on this one.

MARKET STATS 08/06 - 08/12

Market activity in zip codes 90031, 90032, 90041, 90042, 90065 for August 6 through August 12, 2007 as reported in I-Tech MLS

New listings entered

Price reductions

Reported pending

Reported sold and closed

OPEN HOUSES FOR SUNDAY AUGUST 12

Listing of Sunday's Open Houses from I-Tech MLS

Listing of Sunday's Open Houses from Combined L A Westside MLS

Second Saturday Art Gallery Night August 11

The second Saturday of every month is Gallery Night in Northeast Los Angeles :  Your opportunity to explore the Galleries, Shops, Restaurants and Nightlife in the historic and eclectic neighborhoods of Northeast Los Angeles.  Maybe even purchase art for your home or office.

Tour participating galleries this Saturday, August 11, from 7PM - 10 PM, then wrap with drinks and music at Mr. T's Bowl, or La Casa Blue.

More info here:  http://www.nelaart.org/

And here:  http://groups.yahoo.com/group/NELAart/

Mr. T's Bowl:  http://mrtsbowl.tripod.com/

Highland Perk/La Casa Blue:  http://www.lacasablue.com/   

OPEN HOUSES FOR SATURDAY AUGUST 11

Listing of Saturday's Open Houses from I-Tech MLS

Listing of Saturday's Open Houses from Combined L A Westside MLS

Continuing at the Acorn Gallery: Fresh Prints

Continuing at the Acorn Gallery, 135 N Avenue 50

Fresh Prints Through August 19, 2007

Part of NELAArt.org Second Saturdays. Map of participating galleries: www.nelaart.org
Gallery Hours: Saturday & Sundays, noon-4pm
Artists: Stuart Bender, Kay Brown, Karen Neubert and Doug Wichert
Curator: Nancy Buchanan

FRESH PRINTS, opening at the Acorn Gallery July 14, brings together four disparate artists who create art through various kinds of transfer process.

Doug Wichert earned an MFA from California State University, Long Beach, where he also ran the print labs and facilitated student work in lithography and etching. Returning to printmaking after a twenty year absence, he examines issues of material, craft, expectation and risk.

Kay Brown, trained in graphic design at Chouinard and Art Center, joined a printmaking collective at Self-Help Graphics and has explored linocut, drypoint, woodcut, silkscreen, silk etching and monoprints. Many of her works carry strong social messages, and have been auctioned from the collection of the Center for the Study of Political Graphics.

Karen Neubert's monotypes are painterly prints. She studied painting at Stanford and Otis and has worked extensively to create art workshops for children, establishing a children's studio at Pacific Oaks College. The subject matter of the hand-colored postcards she employs is less important to her than a particular color combination, mood or strangeness possessed by the card.

Since 1985, Stuart Bender has created installation, single-channel, and live-performance music/video works which have been exhibited internationally. He is exhibiting works from a new series titled "Djinn of the Fourth Wall."  Each print includes photography, drawing, digital processing, and the Brazilian model Moux, who appears as the Djinn in the images. Djinn comprise an order of spirits believed capable of exercising influence over humankind for either good or bad. For the ancient Semites, djinn were spirits who acted during the night.


Heather Hoggan

Los Angeles Mortgage Rates Report: August 8, 2007- Lock Loans

Los Angeles home buyers should lock-in their interest rates.  The mortgage-backed securities market is responding to two events and mortgage bonds are dropping.

The Federal Reserve Bank did not raise the Discount Rate yesterday (as expected).  Fed Chairman Ben Bernanke spent very little time discussing the mortgage liquidity crisis and talked about containing inflation more.  We see this as positive because it shows that we have a Fed Chairman who is calm, amidst a crisis.

Why change our posture from floating to locking? China is threatening to dump it's $1.3 Trillion in bond holdings as a response to our threat of trade sanctions.  It's a game of chicken being played by diplomats.  Their sale would hurt our markets for about 3-4 months; our trade sanctions would close their largest market. Regardless of which way the political winds blow, we think our customers should be forward locking in rates as soon as they apply for a loan.

Los Angeles home buyers should lock-in their interest rates.  The mortgage-backed securities market is responding to two events and mortgage bonds are dropping.

The Federal Reserve Bank did not raise the Discount Rate yesterday (as expected).  Fed Chairman Ben Bernanke spent very little time discussing the mortgage liquidity crisis and talked about containing inflation more.  We see this as positive because it shows that we have a Fed Chairman who is calm, amidst a crisis.

Why change our posture from floating to locking? China is threatening to dump it's $1.3 Trillion in bond holdings as a response to our threat of trade sanctions.  It's a game of chicken being played by diplomats.  Their sale would hurt our markets for about 3-4 months; our trade sanctions would close their largest market. Regardless of which way the political winds blow, we think our customers should be forward locking in rates as soon as they apply for a loan.

Old L.A. (Highland Park) Farmer's Market Report 7/31/07

It’s Tuesday evening and, as per my usual habit, I hit the Old L.A. (Highland Park) Farmer’s Market to stock up on fresh produce for the week’s lunches and dinners. Although some vendors are m.i.a. this week, there is a new one worth noting – a student group from Pierce College in the San Fernando Valley has been growing pesticide-free herbs and veggies on campus and they have brought them here to share with us. I score some plump, juicy plum tomatoes from them. They are also selling fresh basil (which goes oh, so well with the tomatoes!) and the largest summer squash and zucchini I’ve ever seen. Judge for yourself in this photo.

The squash are not the only overgrown edibles at the market this week. The strawberries are abundant and for $5.00 we get a three-pack of the biggest, reddest, most fragrant berries I’ve seen all year. They will make a perfect strawberry shortcake with some freshly whipped cream and a bit of fresh mint from the garden. There are also several kinds of delicious grapes to add to the fruit bowl. High in iron and antioxidants, they make a tasty and healthy treat on a hot summer day. Try freezing the grapes and eating them while still frozen for a refreshing antidote to the blazing summer temperatures. Cool agua frescas are another way to chill out and hydrate while strolling through the market.

The market is found every Tuesday from 3- 8 p.m. near the Highland Park Gold Line station at Marmion Way, between Avenues 57 & 58 (one block west of Figueroa). In Seth’s words: “Please stop by the market for fresh, field-ripened, high quality produce from local farmers and spend time with your friends, neighbors and other community members.”

See you there. ML

MARKET STATS 07/30 - 08/05

Market activity in zip codes 90031, 90032, 90041, 90042, 90065 for July 30 through August 5, 2007 as reported in I-Tech MLS

New listings entered

Price reductions

Reported pending

Reported sold and closed

OPEN HOUSES FOR SUNDAY AUGUST 5

Listing of Sunday's Open Houses from I-Tech MLS

Listing of Sunday's Open Houses from Combined L A Westside MLS

OPEN HOUSES FOR SATURDAY AUGUST 4

Listing of Saturday's Open Houses from I-Tech MLS

Listing of Saturday's Open Houses from Combined L A Westside MLS

Los Angeles Mortgage Rates Report: August 3, 2007

"It was the best of times, it was the worst of times"- Rudyard Kipling

Wall Street has spoken.  They now say that stated income and no documentation loans are risky.  And they want to get paid for that risk. 

The mortgage markets have faced and will endure a liquidity crisis. It won't affect you if you are applying for a full-documentation loan that conforms to Fannie Mae or Freddie Mac guidelines. If you can't prove that you can make the payments, you won't be getting a free pass anymore.  It's 1999 all over again and that ain't all that bad.

Real opportunity will be available for a borrowers with good credit and verified income.  Zero down payment loans will still be available for those borrowers; it won't be for borrowers who have severe credit problems and can't provide proof of the ability to repay the loan.

Mortgage Interest Rates*

Rates as of 08/03/2007:

Conforming APR Payment per $1,000 Jumbo APR Payment per $1,000 5-Yr. Interest Only 6.25% 6.321% $5.21 6.5% 6.596% $5.42 10 Yr Interest Only 6.625% 6.744% $5.52 7.0% 7.160% $5.83 7/! ARM 6.375% 6.446% $5.31 6.625% 6.722% $5.52 30 Year Fixed 6.5% 6.572% $6.32 7.0% 7.099% $6.65 Annual ARM 5.6% 5.668% $5.74 6.125% 6.219% $6.08 HELOC 8.25% 8.330% $6.88 8.25% 8.357% $6.88 5 Yr ARM- Amo 6.25% 6.321% $6.16 6.375% 6.470% $6.24

*Rates are subject to change due to market fluctuations and borrower's eligibility.