MANUFACTURING, JOBS GROPE FORWARD... The continuing story of an economy that's growing but oh so slowly should continue to be told this week. We'll see two key reads on manufacturing in September, the national ISM Index and the Chicago PMI for the Midwest. Both are forecast just over 50, indicating expansion. The ISM Services index is also expected to come in with a growth number, although slightly below August's.
The first Friday of the month will feature, as always, the prior month's Employment Report. September Nonfarm Payrolls are predicted to be up a little, although well under 200,000 per month. This should not budge the Unemployment Rate, still above the Fed's 6.5% target.
All week, the budget battle in Washington loomed large over Wall Street. The lack of progress, with the deadline for an agreement just days away, kept investors cautious, sending the Dow and the S&P 500 indexes down for the first time in four weeks, although the tech-heavy Nasdaq showed a miniscule gain. The Senate did pass a bill to avoid government shutdown, but as of Friday, it still needed House approval. The U.S. will also hit its borrowing limit on October 17 unless the debt ceiling is raised. With all this going on, economic data held little sway.
That data, as usual, was mixed. Durable Goods Orders were up 0.1% for August, following their drop in July. New Home Sales were up in August but Pending Home Sales were off.
The Latin bard offers good advice in the wake of last Thursday's Pending Home Sales, down 1.6% for August. Observers said rising interest rates were partially to blame for the dip in this measure of contracts signed but not yet closed on existing homes. But national average mortgage rates have dropped the last two weeks with the Fed's announcement it would continue buying mortgage bonds, which should boost bond prices and keep rates low. Also helping us persevere is the fact Pending Home Sales are still up 5.8% for the year.
Further encouragement came from single-family New Home Sales, up 7.9% in August and 12.6% year-over-year. They're now at a 421,000 annual rate, not where they need to be, but rebounding strongly. There
Lane Kiffin has been fired as USC’s football coach following Saturday night’s 62-41 loss at Arizona State, the university announced Sunday morning.
According to a USC news release, Athletic Director Pat Haden told Kiffin about his termination upon the team charter’s arrival back in Los Angeles early Sunday morning.
Coach Lane Kiffin, shown here reacting to a play from Saturday night's 62-41 loss to Arizona State, learned early Sunday morning that he has been fired by USC athletic director Pat Haden.
CHRISTIAN PETERSEN, GETTY IMAGES
Haden announced Sunday morning that he will hold a news conference at 1 p.m. at the John McKay Center.
There is no immediate word on who will serve as the interim replacement for Kiffin for the
Developer Emile Haddad averaged three hours of sleep a night this past week. Here's why:
The first 726 of 9,500 new homes he plans to build just went on sale this weekend near Orange County's Great Park.
Pavilion Park builders include Shea homes with houses like this one. Sales at the development started this weekend; 5,000 to 10,000 home shoppers are expected.
PAUL RODRIGUEZ, ORANGE COUNTY REGISTER
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“I started looking at this deal almost 13 years ago,” said Haddad, president and CEO of FivePoint Communities in Irvine. “For me, it's interesting to have this moment.”
It's a big moment for Orange County, too. The FivePoint's megadevelopment is part of a massive surge of new-home construction countywide. After
Proposition 60 / 90 allows homeowners to transfer their current property tax on their current residence and buy a replacement residence and pay the same adjusted property tax. This results in significant tax savings.
How does this work? The assessor transfers factored base value of the original residence to the replacement residence of equal or lessor value. Prop 60 requires that both the original and replacement homes be within thesame county. Prop. 90 broadens the move within the 7 counties mentioned below. You bought your 3 bedroom, 2 bathroom home in 1995 at $500,000 and today it is assessed at $1,000,000. Within the guidelines, you can transfer your old property tax to a beach-front home in San Diego.
The MCC program allows a qualifying homebuyer to claim a tax credit for a portion of the mortgage interest paid annually. MCCs reduce the homebuyer’s federal income tax liability, increasing the amount of disposable income available to purchase a home.
Am MCC has the potential of saving the MCC holder thousands of dollars over the life and be claimed for as long as they occupy the home purchased as their primary residence. An MCC can be used with almost any type of mortgage, including adjustable rate mortgages.
MCC programs provide homebuyers with the opportunity to buy a home by keeping more money their pockets each month. By using this additional income while
Sales of new single-family homes in America rose in August but held near their lowest levels this year, a sign that a sharp rise in interest rates is weighing on the U.S. economy.
The pace of sales was in line with analysts' expectations and supported the view that rising mortgage rates were taking steam out of America's housing recovery.
August's increase in new home sales did not make up for the steep drop registered in July, when the pace of sales was the weakest since October.
Mortgage rates surged beginning in May when the Federal Reserve gave signals it was thinking of winding down a bond-buying stimulus program. The Fed surprised financial markets last week when it said it would put off reducing monthly bond purchases for
U.S. home prices rose 12.4 percent in July compared with a year ago, the most since February 2006. An increase in sales on a limited supply of available homes drove the gains.
The Standard &Poor’s/Case-Shiller 20-city home price index reported Tuesday improved from June, when it rose 12.1 percent from a year ago. And all 20 cities posted gains in July from the previous month and compared with a year ago.
Still, the month-over-month price gains shrank in 15 cities in July compared with the previous month, indicating prices may be peaking. And the month-over-month gains in the 20-city price index have slowed for three straight months.
Stan Humphries, chief economist for real estate data provider Zillow, said home price should
A dozen Prudential California Realty offices in Orange County are among the first brokerages in the nation to join Warren Buffett’s new Berkshire Hathaway HomeServices real estate chain, the new firm announced.
The new Berkshire Hathaway brand is based in Irvine, resulting from a partnership announced last October between Buffett's existing HomeServices of America chain and the parent company of Prudential Real Estate, Brookfield Asset Management.
The new brand had to be created because Brookfield’s deal to buy Prudential Real Estate limited the amount of time existing franchisees could use the Prudential name, said Kevin Ostler, communications manager for the new chain.
In all, 62 Prudential offices in Southern and Central California are