FOCUS ON KINGS COUNTY
-April 12,2023-
It’s around April 15 and all thoughts turn to our pocketbooks, So what do the latest economic trends show us? Let’s go down the list as we wind up the first quarter of 2023.
CAR SALES: Compared to last year, new sales last week were up 10%, and used sales were down 6% according to an April 7 Cox Automotive report.
TAX REFUNDS: TAX REFUND AMOUNTS ARE DOWN SUBSTANTIALLY 9% less has been disbursed compared to last year, and the average refund is down 11% according to the IRS.
Mortgage Rates Down US 30-year fixed mortgage rates fell for a fifth-straight week to the lowest level in two months, shoring up demand to buy a home.
The contract rate dropped 10 basis points to 6.3% in the period ended April 7, Mortgage Bankers Association data showed Wednesday. The group’s index of mortgage applications for the purchase of a home increased 7.8%, the most since mid January.
INFLATION DOWN
The latest CPI snapshot shows inflation falling to 5%,
GAS PRICES: AAA on April 6 writes that OPEC SURPRISE LEADS TO HIGHER PUMP PRICES
OPEC’s announcement last weekend that it will cut production by over a million barrels per day starting in a month took the oil market by surprise. In response, crude immediately surged well above $80 a barrel, although it has since struggled to stay above that mark. The cost of oil accounts for more than 50% of what we pay at the pump, so drivers may not catch a break at the pump any time soon.”
According to new data from the Energy Information Administration (EIA), gas demand increased slightly from 9.15 to 9.3 million b/d last week. Meanwhile, total domestic gasoline stocks decreased substantially by 4.1 million bbl to 222.6 million bbl. The industry has cut supply as spring demand increases. Increased demand amid tighter supply has contributed to pushing pump prices higher. If demand continues to rise, pump prices will likely follow suit.
Locally, 3 gas stations in Lemoore are still below $4 gallon. In the competitive gas market in Lemoore, the Utah-based Maverick’s chain will build a new fueling station off 198 at 12th.
NEW HOMES: The pace of new home construction is up slightly in the past few years but still far below the numbers pre- pandemic.Through April 11 this year there have been 69 new homes permitted. For the same period in 2019 and 2020 Kings builders permitted over 112 new homes each year according to Construction Monitor.
MILK PRICES DOWN It may be good news at the breakfast table but for Kings County ‘ s largest industry-the production of milk the news is not so good. The latest milk powder price is down to $1.12 per pound.
Central Valley staple dry milk powder prices in the past year have helped diary co-ops like California Dairies Inc in Visalia, one the of the nation’s largest producers-enjoy record margins. Now all that is gone with the price back to just over $1 a pound as the nation’s milk price has come back to earth.