Both local home buyers and ag exporters are complaining about the rising cost of doing business these days. Mortgage rates have been climbing since this summer according to Zillow with the current 30-year rate pegged at 6.75%. That’s up almost a full point from early October.
Fredie Mac says stubborn mortgage rates have moved between 6 and 7 percent over the last 12 months forcing home buyers to accept the higher rates if they want to own a home. Seeing these high rates also slows home builder plans to offer new product.
California farmers and manufacturers looking to send their products overseas have seen a similar spike as offshore customers have to pay about 8% more for products than they used to.That gives foreign competitors an edge. The so-called Dollar Index has risen that much just since early October.The index goes up when the U.S. dollar gains “strength” (value) when compared to other currencies. We export almost 80% of cotton grown here and 67% of our almonds. About 20% of our milk production goes to the export market.
California milk production falls 9% in November
Bird flu has done a number on California milk production, the US’s number-one dairy state.With more sick cows the volume of milk produced in November dropped in a month by the most that USDA has ever recorded – 9.2 percent. About one in four California dairies came down with avian influenza in November and just before Christmas the number of dairies affected totaled 645, about 60% of the state’s diaries.The good news, now about 56 diaries have seen their quarantine lifted as the cows have recovered.
Kings jobless rate improved
The unemployment rate in Kings County was 7.8 percent in November 2024, below the year-ago estimate of 7.9 percent.The county added about 600 nonfarm jobs year over year, led by health services jobs.
In next door Fresno County, nonfarm jobs and farm jobs headed in opposite directions.Between November 2023 and November 2024, total industry employment increased by 3,400 jobs (up 0.8 percent). Nonfarm employment rose by 8,100 jobs (up 2.1 percent), while farm employment declined by 4,700 jobs (down 12.9 percent).
That included government payroll climbing by 4,000 jobs. year over year. Gains were in local government (up 3,400 jobs), state government (up 400 jobs), and federal government (up 200 jobs).
Jet fuel price powers travel economy
Jet fuel currently accounts for about 30% of airlines’ operating costs and it is the largest and most volatile expense category.The price of kerosene-based jet fuel climbed to over $4 a gallon in June 2022 but has declined by half since – close to pre-pandemic levels.Airlines are able to offer lower fares this holiday period and more passengers are flying than ever.
N.California stays wet/South dry
The forecast for Redding California, next to the state’s largest reservoir, calls for over 5 inches of precip over this holiday week with rain five days in a row.High pressure is steering storms north while the south faces continued danger of fire approaching the new year.
Meteorologists say the north is on track to experience their wettest start to the Water Year on record while wide swaths of SoCal are on track to meet or tie the record for their driest start to the Water Year.
