NMLS 338105

1 (866) 861-5708

BETH HOFFMAN
BROKER/OWNER

   NMLS 337855
  

 

NMLS 338105

1 (866) 861-5708

BETH HOFFMAN
BROKER/OWNER

   NMLS 337855
  

 

New Home Purchase
Purchase Basics, Qualification, Loan Calculators (How much home can you buy?)


Refinance
Refinance Basics, Loan Calculators


Free Consultation

 

 

New Home Purchase
Purchase Basics, Qualification, Loan Calculators (How much home can you buy?)


Refinance
Refinance Basics, Loan Calculators


Free Consultation

 

 

Alternative Mortgage Sources is an independent loan brokerage owned and operated by Broker/Owner Beth Hoffman since 1986. Beth has earned a reputation for "demystifying the loan process" while delivering superior service to over 2,500 clients throughout the state of California.

Alternative Mortgage Sources is a full service mortgage broker offering expertise in every area of mortgage lending...from purchases to refinancing. We have access to a full range of mortgage sources to find the right loan — with the best rates, terms and costs — to meet our clients' unique needs. But that's just the beginning. Throughout the lending process, we provide regular loan updates and progress reports so clients always know the status of their loan.

Beth Hoffman, dba Alternative Mortgage Sources,
CA Dept. Of Real Estate Real Estate Broker, DRE # 00685309
NMLS #337855/NMLS #338105

Alternative Mortgage Sources is an independent loan brokerage owned and operated by Broker/Owner Beth Hoffman since 1986. Beth has earned a reputation for "demystifying the loan process" while delivering superior service to over 2,500 clients throughout the state of California.

Alternative Mortgage Sources is a full service mortgage broker offering expertise in every area of mortgage lending...from purchases to refinancing. We have access to a full range of mortgage sources to find the right loan — with the best rates, terms and costs — to meet our clients' unique needs. But that's just the beginning. Throughout the lending process, we provide regular loan updates and progress reports so clients always know the status of their loan.

Beth Hoffman, dba Alternative Mortgage Sources,
CA Dept. Of Real Estate Real Estate Broker, DRE # 00685309
NMLS #337855/NMLS #338105

 

ISM Manufacturing and Construction Spending Weaken

01-Dec-22  11:07 ET

 

10-Year:  + 20/32  3.592%  
US/JPY: 135.81  
EUR/US: 1.0492

 

Data Recon

  • The November ISM Manufacturing Index dropped to 49.0% (Briefing.com consensus 49.8%) from 50.2% in October. The dividing line between expansion and contraction is 50.0%, so the sub-50.0% reading for November reflects a contraction in manufacturing activity. The ISM for November hit its lowest level since May 2020, breaking a string of 29 months of expansion.
  • The key takeaway from the report is that manufacturing activity contracted for the first time since May 2020, demonstrating that the cumulative effect of rate hikes around the globe are adversely impacting demand while at the same time curtailing inflation pressures.
    • The New Orders Index decreased to 47.2% from 49.2%.
    • The Prices Index fell to 43.0% from 46.6%, hitting its lowest level since May 2020.
    • The Backlog of Orders Index dropped to 40.0% from 45.3%.
    • The Supplier Deliveries Index rose to 47.2% from 46.8%.
    • The Production Index slipped to 51.5% from 52.3%.
    • The New Export Orders Index increased to 48.4% from 46.5%.
    • The Employment Index dipped to 48.4% from 50.0%.
  • Total construction spending decreased 0.3% month-over-month in October (Briefing.com consensus -0.2%) following a downwardly revised 0.1% increase (from 0.2%) in September. Total private construction declined 0.5% month-over-month while total public construction spending increased 0.6%. On a year-over-year basis, total construction spending was up 9.2%.
  • The key takeaway from the report is that private construction spending was weak on the residential and nonresidential side of things, presumably due to rising interest rates that are making construction projects more expensive to finance at a time when broader economic activity is slowing due in part to the rising interest rates.
    • Total residential spending was down 0.3% month-over-month and was up 8.5% year-over-year. Total nonresidential spending also dropped 0.3% month-over-month and was up 9.8% year-over-year.
    • The decline in private construction spending was paced by a 0.8% decline in nonresidential spending, which was led by a 3.2% decline in manufacturing spending and a 0.4% drop in commercial spending. Residential private spending was down 0.3%, pressured by a 2.6% decline in new single-family construction.
    • The increase in public construction was driven by a 0.6% increase in nonresidential spending, which was led by a 0.5% increase in educational spending and a 22.8% surge in power spending. Public residential construction spending decreased 0.9%.

Yield Check:

  •   2-yr: -07 bps to 4.31%
  •   3-yr: -05 bps to 4.06%
  •   5-yr: -09 bps to 3.74%
  • 10-yr: -11 bps to 3.59%
  • 30-yr: -11 bps to 3.71%

Bond Market Update

Prop. 19 passes, but questions about California property tax measure remain

Same-sex spouses can now get Social Security Survivor Benefits

 

ISM Manufacturing and Construction Spending Weaken

01-Dec-22  11:07 ET

 

10-Year:  + 20/32  3.592%  
US/JPY: 135.81  
EUR/US: 1.0492

 

Data Recon

  • The November ISM Manufacturing Index dropped to 49.0% (Briefing.com consensus 49.8%) from 50.2% in October. The dividing line between expansion and contraction is 50.0%, so the sub-50.0% reading for November reflects a contraction in manufacturing activity. The ISM for November hit its lowest level since May 2020, breaking a string of 29 months of expansion.
  • The key takeaway from the report is that manufacturing activity contracted for the first time since May 2020, demonstrating that the cumulative effect of rate hikes around the globe are adversely impacting demand while at the same time curtailing inflation pressures.
    • The New Orders Index decreased to 47.2% from 49.2%.
    • The Prices Index fell to 43.0% from 46.6%, hitting its lowest level since May 2020.
    • The Backlog of Orders Index dropped to 40.0% from 45.3%.
    • The Supplier Deliveries Index rose to 47.2% from 46.8%.
    • The Production Index slipped to 51.5% from 52.3%.
    • The New Export Orders Index increased to 48.4% from 46.5%.
    • The Employment Index dipped to 48.4% from 50.0%.
  • Total construction spending decreased 0.3% month-over-month in October (Briefing.com consensus -0.2%) following a downwardly revised 0.1% increase (from 0.2%) in September. Total private construction declined 0.5% month-over-month while total public construction spending increased 0.6%. On a year-over-year basis, total construction spending was up 9.2%.
  • The key takeaway from the report is that private construction spending was weak on the residential and nonresidential side of things, presumably due to rising interest rates that are making construction projects more expensive to finance at a time when broader economic activity is slowing due in part to the rising interest rates.
    • Total residential spending was down 0.3% month-over-month and was up 8.5% year-over-year. Total nonresidential spending also dropped 0.3% month-over-month and was up 9.8% year-over-year.
    • The decline in private construction spending was paced by a 0.8% decline in nonresidential spending, which was led by a 3.2% decline in manufacturing spending and a 0.4% drop in commercial spending. Residential private spending was down 0.3%, pressured by a 2.6% decline in new single-family construction.
    • The increase in public construction was driven by a 0.6% increase in nonresidential spending, which was led by a 0.5% increase in educational spending and a 22.8% surge in power spending. Public residential construction spending decreased 0.9%.

Yield Check:

  •   2-yr: -07 bps to 4.31%
  •   3-yr: -05 bps to 4.06%
  •   5-yr: -09 bps to 3.74%
  • 10-yr: -11 bps to 3.59%
  • 30-yr: -11 bps to 3.71%

Bond Market Update

Prop. 19 passes, but questions about California property tax measure remain

Same-sex spouses can now get Social Security Survivor Benefits