NELA Live

Los Angeles Mortgage Rates Report: December 31, 2007

Happy New Year Los Angeles!

Pay close attention to what Bob Ashby says here:

Mortgage bonds have been rallying since Bhutto was killed yesterday, all due to uncertainty about who will take control of the nuclear power there.  As is typical with uncertainty, there is a "flight to quality" which means bonds, including mortgage backed securities, benefit even when the fundamentals are lacking.

Is it madness?  Not really, just temporary insanity.

 

Thursday, I changed my recommendation to float all loans for this reason:

Expect a flight to safety (READ: Treasuries) from riskier assets. Mortgage bonds should benefit from this flight to safety trend during the Pakistan situation.  This could very well improve mortgage rates in the near term.   Be prepared to act quickly as this volatile situation changes.

What's wrong here? Most of my readers know that Robert Ashby and I are almost always reading from the same sheet of music.  Who's right?

Both of us are.  I said to "be prepared to act quickly" which means you need to keep checking back.  As quickly as rates improves, they will reverse course and start rising again.  It could happen tomorrow (Dec. 31) or on Wednesday (Jan 2) or soon thereafter. The anarchy in Pakistan is driving the lower mortgage rates.  When that's seems stable, it's time to lock.

Keep checking back.

Happy New Year Los Angeles!

Pay close attention to what Bob Ashby says here:

Mortgage bonds have been rallying since Bhutto was killed yesterday, all due to uncertainty about who will take control of the nuclear power there.  As is typical with uncertainty, there is a "flight to quality" which means bonds, including mortgage backed securities, benefit even when the fundamentals are lacking.

Is it madness?  Not really, just temporary insanity.

 

Thursday, I changed my recommendation to float all loans for this reason:

Expect a flight to safety (READ: Treasuries) from riskier assets. Mortgage bonds should benefit from this flight to safety trend during the Pakistan situation.  This could very well improve mortgage rates in the near term.   Be prepared to act quickly as this volatile situation changes.

What's wrong here? Most of my readers know that Robert Ashby and I are almost always reading from the same sheet of music.  Who's right?

Both of us are.  I said to "be prepared to act quickly" which means you need to keep checking back.  As quickly as rates improves, they will reverse course and start rising again.  It could happen tomorrow (Dec. 31) or on Wednesday (Jan 2) or soon thereafter. The anarchy in Pakistan is driving the lower mortgage rates.  When that's seems stable, it's time to lock.

Keep checking back.

MARKET STATS 12/24 - 12/30

Market activity in zip codes 90031, 90032, 90041, 90042, 90065 for  December 24 through December 30, 2007 as reported in I-Tech MLS:

New listings entered

Price reductions

Reported pending

Reported sold and closed

OPEN HOUSES FOR SUNDAY DECEMBER 30

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 DECEMBER 29

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

Historian 4 Hire

NELA locals will recognize Charles J. Fisher as a tireless advocate for historical preservation.  Charlie is a multiple-times past president of the Highland Park Heritage Trust. He was integral in establishing the Highland Park Historic Preservation Overlay Zone, participates in the Alliance of Historic Preservation Overlay Zones, and currently serves on the Highland Park HPOZ Board.

If you own an older home, you may have heard of the property tax relief via the Mills Act for owners of homes declared Los Angeles Historic Cultural Monuments.

Did you know that Charlie runs a small business called Historian 4 Hire that will assist you in obtaining the Historic Cultural Monument declaration, and in completing the Mills Act application?

OK.... So, this is a plug for Charlie's Historian 4 Hire business.  But, if you do need assistance in navigating the whole declaration/application process, you'll find Charlie is the best!

A Los Angeles Christmas: Joy to the World

Old L.A. (Highland Park) Farmer's Market Report 12/17/07

Hello Highland Park!

Unfortunately, the Old L.A. (Highland Park) Farmers Market was rained out last week, so nothing to report. I'm very glad that we all got some much needed rain and started to build up the snow pack in the mountains. The farmers will need the water to irrigate their crops so they can continue to bring fresh, nutritious and beautiful produce to market for all of us.

Today is Christmas Eve. I wish all of you and your families a happy holiday and bright, fun, healthy new year!!

I'll resume market reports in January when the market is back and I'll need to cook some healthy meals full of fresh fruits and vegetables to battle the aftermath of the holiday indulgences.

See you soon,
Maggie

MARKET STATS 12/17 - 12/23

Market activity in zip codes 90031, 90032, 90041, 90042, 90065 for December 17 through December 23, 2007 as reported in I-Tech MLS:

New listings entered

Price reductions

Reported pending

Reported sold and closed

Los Angeles Mortgage Rates Report: December 21, 2007

I've been telling my Los Angeles readers to lock their mortgage rates, at application, since November 14, 2007.  I don't want to repeat what I've been saying; you can read all of the background here.

I'll take a little break from my usual analysis and rely on some of the great mortgage bloggers to help me out.  Consider this collection of advice:

Robert Ashby in Florida:

You see, the Fed's favorite gauge on inflation is the PCE report.  You may have already known the Fed's "comfort zone" is between 1 and 2%. The last report, although with in the "comfort zone", ticked up from 1.8% to 1.9%.  It went virtually unnoticed since it was in the acceptable range and other economic data was relatively friendly for a Fed rate cut, which they ultimately did.

This morning, the most recent PCE data was released and guess what.  My warnings came to fruition.  The numbers released this morning showed year over year inflation at 2.2% (0.3% higher than the last report) and that should be making the Fed "uncomfortable" now.

Dan Green in Cincinnati:

I am predicting that rates will increase over the next 30 days, but that doesn't mean you should necessarily follow my advice when choosing whether to lock a rate, or float it.  My advice may not be appropriate for your individual situation.

From the Bankrate.com survey:

"Mortgage rates came down last month on recession fears. They'll move up this month on inflation fears."

Markets were caught leaning the wrong way on inflation and the adjustments may be painful.

Rhonda Porter in Seattle:

And today is not over.   We could very well have other price changes.   If you're looking at refinancing your ARM into a fixed rate, it's time to get off the fence. Waiting could prove to be an expensive decision.   Especially considering we have 30 year fixed rates under 6%, underwriting guidelines are in a tightening phase, credit score pricing for prime a-paper loans are going into effect with more lenders every day and products continue to be discontinued.

I'm not alone.  There's a whole bunch of risk out there by floating mortgage rates.  Lock your loan at application.  Get a written lock confirmation from the loan originator with a specific rate lock expiration date.

NELA Flickr Groups

There are several Northeast Los Angeles groups on http://www.Flickr.com   If you love taking photos of the local community, you might want to consider joining Flickr and sharing your photos, too.

Highland Park:  http://www.flickr.com/groups/highlandparkla/

Highland Park, Eagle Rock and Pasadena:  http://www.flickr.com/groups/highlandpark/

Mt. Washington: http://www.flickr.com/groups/mt_washington_90065/

Glassell Park:  http://www.flickr.com/groups/glassellpark/

The Arroyo Seco:  http://www.flickr.com/groups/85187525@N00/

Los Angeles River:  http://www.flickr.com/groups/lariver/

El Sereno:  http://www.flickr.com/groups/elsereno/

Greater L.A. area:

MetroRiderLA:  http://www.flickr.com/groups/metroriderla/

MetroBlogging L.A.:  http://www.flickr.com/groups/mb_la/

Los Angeles Grafitti:  http://www.flickr.com/groups/losangelesgraffiti/

Los Angeles Street Art:  http://www.flickr.com/groups/losangelesstreetart/

MARKET STATS 12/10 - 12/16

Market activity in zip codes 90031, 90032, 90041, 90042, 90065 for December 10 through December 16, 2007as reported in I-Tech MLS:

New listings entered

Price reductions

Reported pending

Reported sold and closed

A Los Angeles Christmas: Live From The Jersey Shore

From my home state, by the patron saint of Jersey Shore music, Bruce Springsteen.   The Boss made Santa Claus is Comin' to Town famous but no self-respecting Jersey Boy would pick that over Merry Christmas, Baby

OPEN HOUSES FOR SUNDAY DECEMBER 16

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

You're Invited to Holidays with Audubon

Holidays with Audubon

Saturday December 15 (12–3 pm) Join Audubon to celebrate the holiday season!

* Learn how to make papel picado (cut paper) and holiday decorations using materials from our natural environment.

* Local artist Leo Limón will be on hand all day to help guide our creative spirits.

* At 2:00 pm, join storyteller, Michael McCarty, as he shares tales from around the globe.

All ages Welcome!

Refreshments will be served.

Festividades con Audubon

Sábado 15 de Diciembre (12–3 pm) ¡Venga y celebre con nosotros estos días festivos!

* Aprenda a hacer banderitas de papel picado y decoraciones tradicionales usando materials naturales.

* Leo Limón, artista local, estará con nosotros todo el día para guiar nuestros espíritus creativos.

* A las 2:00 pm, Michael McCarty compartirá con nosotros historias de todo el mundo.

¡Todas las edades son bienvenidas!

Se servirán refrescos.

4700 North Griffin Ave. • Los Angeles, CA 90031

323-221-2255 • audubondebspark.org

Avenue 50 Studio: 3rd Annual Holiday Sale

3rd Annual Holiday Sale at Avenue 50 Studio

Saturday, December 15, 2007 from 12 noon to 6:00 pm

Jewelry, books, scarves, photos, Christmas Tree ornaments, prints and small paintings

The Arroyo Arts Collective and the Avenue 50 Studio invite you to stop by for a Holiday Sale of original and affordable art by the following artists (partial listing):

Lalo Alcaraz, Drewcilla Annese, Benito Campos, Kay Brown, Val Echavarria, Jack Fenn, Margaret Garcia, Germs, CiCi Gonzalez, Cidne Hart, Kevin Hass, Heather Hoggan, Abelar Kummerow, Elva Lauter, Pola Lopez, Jose Lozano, Heriberto Luna, Poli Marichal, Don Normark, Gil Ortiz,  Juanita Rivas Raymer, Sonia Romero, Stormie, the Los de Abajo Collective, J. Michael Walker

If you're a last-minute shopper in need of buying presents (and something for yourself), stop by the Avenue 50 Studio for a chance to support local artists and galleries.

Music, tamales, ponche de navidad, and other holiday refreshments throughout the day

Avenue 50 Studio/Arroyo Arts Collective
131 No. Avenue 50, Highland Park, CA  90042

323/258-1435
www.avenue50studio.com

Los Angeles Mortgage Rates Report: December 12, 2007

We still favor locking fixed-rate mortgage rates, at application for rates under 6% (while paying the standard 1% origination fee).  Today, that mortgage rate would have been 5.875% for an APR of 6.125%.

Last week, mortgage rates dropped fast and rose as quickly.  When a fixed-rate loan is at 5.5%, we think it makes sense to lock-in the rate, even if you have to pay a little discount fee, to get that rate (depending on your expected hold time).  That rate was available for one day only, last week.  Those of you who were ready to act quickly, will be closing at that rate this week.

If you call me and make an application, I'll watch the mortgage rates daily and communicate with you so you can "bottom fish" this market.

If rates creep above 6%, we favor floating.  The Fed's decisions to print more money may seem inflationary but the liquidity crisis still exists.  Wall Street may bid mortgage rates above 6% but we don't think lasts for more than a few days.

We still favor locking fixed-rate mortgage rates, at application for rates under 6% (while paying the standard 1% origination fee).  Today, that mortgage rate would have been 5.875% for an APR of 6.125%.

Last week, mortgage rates dropped fast and rose as quickly.  When a fixed-rate loan is at 5.5%, we think it makes sense to lock-in the rate, even if you have to pay a little discount fee, to get that rate (depending on your expected hold time).  That rate was available for one day only, last week.  Those of you who were ready to act quickly, will be closing at that rate this week.

If you call me and make an application, I'll watch the mortgage rates daily and communicate with you so you can "bottom fish" this market.

If rates creep above 6%, we favor floating.  The Fed's decisions to print more money may seem inflationary but the liquidity crisis still exists.  Wall Street may bid mortgage rates above 6% but we don't think lasts for more than a few days.

A Los Angeles Christmas: Santa Baby by Eartha Kitt

Santa Baby is a song recorded by Eartha Kitt, in 1953.  Eartha Kitt is well known as Catwoman from the 1960's Batman series.  This song has been covered by many:  Madonna, Brittany Spears, and RuPaul, among others.  This performance, by Eartha Kitt, was from last year's White House Christmas special.  Oh, in case you were wondering, she was two weeks from her 80th birthday last Christmas.  A truly beautiful lady.

Old L.A. (Highland Park) Farmer's Market Report 12/4/07

This year, between Thanksgiving and Christmas, I’ve decided to avoid the mall at all costs. All of my holiday shopping, what little I do, will be done at small, independent shops, hopefully right in my neighborhood (who can afford to buy gifts if you have to spend your money on gas driving all over town?). Luckily for me, Highland Park and other nearby neighborhoods have an abundance of resources for a discriminating shopper.

My very first shopping spree of the season took place at the Old L.A. (Highland Park) Farmers Market last week at Uncle Berch’s stand. They have my favorite salad dressing and marinade ingredient in the world – avocado oil blended with a touch of blood orange. It is deliciously fragrant and elegant. It happens to be very healthy, too – all that mono-unsaturated fat to keep your cholesterol in check. Although I’ve been buying it for myself all year, now is the perfect time to share this treasure with those I love. I bought half a dozen bottles to spread around to members of my family. Uncle Berch’s has an amazing variety of gourmet products that make ideal gifts for anyone on your list who likes to eat (and really, who doesn’t?). The avocado oil comes blended with other flavors such as key lime and toasted garlic. There is a variety of gorgeous olive oils as well as balsamic vinegars of different ages and with different flavorings, such as berries. There are also homemade jams in range of unusual and delicious flavors, which vary weekly. A small collection of oil, vinegar and jam, all placed together in a pretty basket or box, tied up with a bow makes a beautiful gift.

If you want to do an even more elaborate gift basket, consider adding some dried fruits and nuts from the stand right next to Uncle Berch’s. At this time of year, when everyone is inundated with chocolates and cookies, a basket full of healthy and tasty treats is most welcome.

The market is found every Tuesday from 3- 8 p.m. on Avenue 58 and Marmion Way, between the Gold Line station and Figueroa Blvd. There is FREE PARKING after 4 p.m. in the lot adjacent to the market.

See you there. ML

MARKET STATS 12/03 - 12/09

Market activity in zip codes 90031, 90032, 90041, 90042, 90065 for December 3 through December 9, 2007 as reported in I-Tech MLS:

New listings entered

Price reductions

Reported pending

Reported sold and closed

OPEN HOUSES FOR SUNDAY DECEMBER 9

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

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

A Los Angeles Christmas: Little Saint Nick

Two things can help you forget your troubles and remember what's really important in life: Christmas music and The Beach Boys. I found a great rendition of the Beach Boys holiday classic, Little Saint Nick, performed by the La Jolla chapter of the Barbershop Harmony Society.

3rd Annual Holiday Sale At Avenue 50 Studio

Saturday, December 15, 2007 from 12 noon to 6:00 pm

Jewelry, books, scarves, photos, Christmas Tree ornaments, prints and small paintings

The Arroyo Arts Collective and the Avenue 50 Studio invite you to stop by for a Holiday Sale of original and affordable art by the following artists (partial listing):

Lalo Alcaraz, Drewcilla Annese, Benito Campos, Kay Brown, Val Echavarria, Jack Fenn, Margaret Garcia,
Germs, CiCi Gonzalez, Cidne Hart, Kevin Hass, Heather Hoggan, Abelar Kummerow, Elva Lauter, Pola Lopez, Jose Lozano, Heriberto Luna, Poli Marichal, Don Normark, Gil Ortiz,  Juanita Rivas Raymer, Sonia Romero, Stormie, the Los de Abajo Collective, J. Michael Walker

If you're a last-minute shopper in need of buying presents (and something for yourself), stop by the Avenue 50 Studio for a chance to support local artists and galleries.

Music, tamales, ponche de navidad, and other holiday refreshments throughout the day

Avenue 50 Studio/Arroyo Arts Collective
131 No. Avenue 50
Highland Park, CA  90042

323/258-1435
www.avenue50studio.com

Free Comedy this weekend at La Casa Blue, Food & Bar

Highland Park's very own La Casa Blue is hosting Free LIVE Stand UP comedy tonight (Friday) on the Main Stage. Lots of Food, Beer & Wine, Wine cocktails and appetizers available before, during and after the show.

Open till 1:00 a.m. on Fridays and Saturdays, La Casa Blue is a great destination to begin or round off a great evening.

See you here at La Casa Blue,
Scott & Miguel

5930 York Blvd. in Highland Park, (Los Angeles, CA 90042)
323-394-2992 for directions
3 blocks west of Figueroa Street & the 110 freeway exit Avenue 64
 
www.LaCasaBlue.com

Los Angeles Mortgage Rates Report: December 7, 2007

We pause before our usual Los Angeles Mortgage Rates Report:

Today is the 66th anniversary of the attack on Pearl Harbor.  That attack was the first ever on American soil and was the trigger for American involvement in World War Two.  1,177 crew members lost their life on the USS Arizona making it the largest lost of life on an American warship.  I ask you to pause for a minute and keep those sailors and marines in your prayers.

Veterans, did you know that your VA loan could be refinanced, to a fixed rate loan, with no income verification and no appraisal?  It's called the VA Interest Rate Reduction Loan.  Watch this 13 minute video, released by the VA (just click the "Thinking of Refinancing?" link).

We are still maintaining our lock-in at application posture for mortgages.  The much awaited jobs report came out today and the data looked better than expected. While the declining housing market may be a drag on the economy, the jobs data tells us that its reach, while far, isn't throwing us into a recession.

Fixed mortgage rates, at 6% or better, should be locked at application.  If rates creep up above the 6.0% mark, it makes sense to float.  The Fed meets next Wednesday and the expectation of both a Fed Funds and Discount Rate cut is built into today's mortgage rates. Waiting for the Fed decision could cost you a lot of money.  If they don't cut rates, mortgage rates will skyrocket to the 6.25% level.

Mid-term ARMs aren't making sense right now.  The only value I see in the ARM market is a 3/1 ARM at 5.25%.  A fixed rate mortgage, at 5.75%, is tough to beat right now.

We pause before our usual Los Angeles Mortgage Rates Report:

Today is the 66th anniversary of the attack on Pearl Harbor.  That attack was the first ever on American soil and was the trigger for American involvement in World War Two.  1,177 crew members lost their life on the USS Arizona making it the largest lost of life on an American warship.  I ask you to pause for a minute and keep those sailors and marines in your prayers.

Veterans, did you know that your VA loan could be refinanced, to a fixed rate loan, with no income verification and no appraisal?  It's called the VA Interest Rate Reduction Loan.  Watch this 13 minute video, released by the VA (just click the "Thinking of Refinancing?" link).

We are still maintaining our lock-in at application posture for mortgages.  The much awaited jobs report came out today and the data looked better than expected. While the declining housing market may be a drag on the economy, the jobs data tells us that its reach, while far, isn't throwing us into a recession.

Fixed mortgage rates, at 6% or better, should be locked at application.  If rates creep up above the 6.0% mark, it makes sense to float.  The Fed meets next Wednesday and the expectation of both a Fed Funds and Discount Rate cut is built into today's mortgage rates. Waiting for the Fed decision could cost you a lot of money.  If they don't cut rates, mortgage rates will skyrocket to the 6.25% level.

Mid-term ARMs aren't making sense right now.  The only value I see in the ARM market is a 3/1 ARM at 5.25%.  A fixed rate mortgage, at 5.75%, is tough to beat right now.

Second Saturday Art Gallery Night December 8

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, December 8, 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/

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

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, December 8, 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/

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

A Los Angeles Christmas: Rudolph, Regis, Kelly and The Donald

Remember Regis, Los Angeles? While he got his start delivering films on KCOP, in Los Angeles, his first show was The Regis Philbin show, in San Diego. He moved back to Tinseltown to host Philbin's People and ultimately to New York to host Live!, first with Cindy Garvey, then Kathie Lee Gifford, and finally with the talented Kelly Ripa. Here's Regis, singing in a parody of those Rankin & Bass Christmas specials, so many of us watched, in the 60s and 70s.

MARKET STATS 11/26-12/02

Market activity in zip codes 90031, 90032, 90041, 90042, 90065 for  November 26 though December 2, 2007 as reported in I-Tech MLS:

New listings entered

Price reductions

Reported pending

Reported sold and closed

OPEN HOUSES FOR SUNDAY DECEMBER 2

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

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

As you plan your Open House visits, please remember than North Figueroa will be closed today from Avenue 60 to Sycamore Grove Park for the Northeast L A Holiday Parade.  Parade starts at 1:00 PM.