Nov 6 (Reuters) – (The following statement was released by the rating agency)
As U.S. home prices continue to increase nationally, several cities are approaching inflated bubble-year peaks, according to the latest sustainable home price update from Fitch Ratings.
U.S. home prices have risen 13%. However, Fitch sees the growth as unsustainable. In fact, national prices are approximately 17% overvalued as per Fitch’s Sustainable Home Price (SHP) Model. Many of those cities, not surprisingly, are in California, according to Director Stefan Hilts.
‘Home prices in San Francisco have gone up over 20% year-over-year, the highest rate of increase than at any point in the last 10 years,’ said Hilts. ‘In fact, San Francisco and San Jose will set new home price records in the next six months. Fitch’s SHP model currently identifies much of coastal California to be more than 20% overvalued. Other California cities nearing bubble-year peaks include Oakland, San Diego and Los Angeles.
November 6, 2013 No Comments
WASHINGTON (Reuters) – U.S. private-sector employers hired the fewest workers in six months in October while tepid domestic demand kept inflation benign last month, suggesting the economy was still in need of stimulus from the Federal Reserve.
The slowdown in private job growth was the latest signal that the labor market has taken a step back in recent months, and the clearest indication yet that a 16-day government shutdown weighed on economic activity.
Officials from the central bank are expected to keep their monthly $85 billion bond-buying pace unchanged when they conclude a two-day meeting later on Wednesday.
October 30, 2013 No Comments
NEW YORK (Reuters) – U.S. private employers added a fewer-than-expected 166,000 jobs in September, according to Wednesday data from a payrolls processor, underscoring steady but still sluggish growth in the labor market.
Economists surveyed by Reuters had forecast the ADP National Employment Report would show a gain of 180,000 jobs. August’s private payrolls gains were revised to 159,000 from the previously reported 176,000.
“It basically says that the stimulus will continue,” said Chris Gaffney, senior market strategist, EverBank Wealth Management in St. Louis, Missouri.
“The government shutdown will be a negative impact on the U.S. economy, extending the need for additional stimulus.”
October 2, 2013 No Comments
WASHINGTON—The U.S. economy grew faster than previously estimated in the second quarter due to more buoyant exports and business investment, indicating a stronger trajectory for growth heading into the second half of the year.
The nation’s gross domestic product, the broadest measure of goods and services produced in the economy, grew at a 2.5% annual rate in the second quarter, an upward revision from an initial estimate of 1.7% reported last month, the Commerce Department said Thursday. Economists had forecast a revised second-quarter growth rate of 2.2%.
August 29, 2013 No Comments
WASHINGTON (Reuters) – Employers slowed their pace of hiring in July but the jobless rate fell anyway, a pair of mixed signals that could make the Federal Reserve more cautious about drawing down its huge economic stimulus program.
The number of jobs outside the farming sector increased by 162,000 last month, the smallest gain in four months and below analysts’ expectations, Labor Department data showed on Friday.
The lackluster reading reinforced the view that the job market is only inching toward recovery from the 2007-09 recession and weighed on financial markets.
“We’re sort of grinding along here,” said Gordon Charlop, managing director at Rosenblatt Securities in New York.
August 3, 2013 No Comments
WASHINGTON (Reuters) – New U.S. home sales vaulted to a five-year high in June, showing no signs of slowing in the face of higher mortgage rates.
Other data on Wednesday showed an acceleration in U.S. factory activity this month, boosting hopes of a third-quarter pick-up in economic growth.
Single-family home sales increased 8.3 percent to a seasonally adjusted annual rate of 497,000 units, the highest level since May 2008, the Commerce Department said. Sales rose 1.3 percent in May.
Economists polled by Reuters had expected new home sales to advance to a 482,000-unit rate last month.
July 24, 2013 No Comments
WASHINGTON (Reuters) – U.S. home resales unexpectedly fell in June after two straight months of hefty increases, but a surge in prices to a five-year high suggested the housing market recovery remained on course.
The National Association of Realtors said on Monday home sales fell 1.2 percent to an annual rate of 5.08 million units. Still, sales remained the second highest since November 2009.
May’s sales pace was revised down to 5.14 million units from the previously reported 5.18 million units. Economists polled by Reuters had expected sales to rise to a 5.25 million unit pace in June.
Sales were up 15.2 percent from their year-ago level.
July 22, 2013 No Comments
The Federal Reserve Board has ratcheted up the amount of capital U.S. banks will need to hold. In the new rules approved by a vote in an open meeting today in Washington, the minimum capital U.S. banks will need to hold is higher than that set out in Basel III. Most banks are already in compliance with the rule, according to the Fed. Still, about 100 banks will end up raising $4.5 billion by 2019 to catch up to the rules.
Chairman Ben Bernanke complimented Fed staff for their work on the rule, which synthesized the positions of various agencies as well comments from the financial services industry. The Fed struck a “delicate balance” when it came to the needs of small banks, according to Bernanke, and he noted that between the stress test, capital reviews, and the new rules, regulation of large banks was coming together. He went on to say Fed examiners would have to keep a close eye on risk management.
July 2, 2013 No Comments
By Lucia Mutikani
WASHINGTON | Wed Jun 26, 2013 10:42am EDT
(Reuters) – The U.S. government slashed its estimate for first-quarter economic growth on Wednesday, offering a cautionary note on the recovery as the Federal Reserve ponders curtailing its monetary stimulus.
Gross domestic product expanded at a 1.8 percent annual rate in the quarter, the Commerce Department said in its final estimate. The economy was previously reported to have grown at a 2.4 percent pace after a near stall-speed advance of 0.4 percent in the final three months of last year.
Details of the report showed downward revisions to almost all growth categories, with the exception of home construction and government. The biggest surprise came in consumer spending, which grew at a 2.6 percent pace, not the 3.4 percent rate previously estimated.
June 26, 2013 No Comments
The Los Angeles County Superior Court plans to eliminate more than 500 jobs by the end of the week in a sweeping cost-cutting plan to close a projected $85-million budget shortfall for the next fiscal year.
On Friday, layoff notices will be hand-delivered to employees as 511 court positions are eliminated. While some positions will simply go unfilled, 177 people will lose their jobs, court officials announced Tuesday.
An additional 139 people will receive demotions and pay cuts, and 223 people will be transferred to new work locations, officials said.
June 12, 2013 No Comments