Powder Day…

The snow seems to be making up for lost time because December 23, 2008 was yet another powder day in Tahoe.  

I skied at Alpine Meadows today and was shown around the mountain by a super fun crew of skiers.  Being new to this ski area, it was great to get the full tour.  The snow was thin in places, but if you picked your lines wisely, you could definitely ski for real.   

Take a look at the photo below of the untracked and distinctly big-mountain “Buttress.”   Not too shabby considering that the season is only about 10 days old. 

Little Alaska…

Yesterday Adam Rucido and I skinned out to Little Alaska in Ward Canyon.  For background, Little Alaska is an area of spines, gullies and cliffs at the head of Ward Canyon, south of Alpine Meadows ski area.  The terrain is visually inspiring and great fun to ski. 

Upon reaching the top it was clear that the previous day’s wind event had created deep slabs on the most asthetic  features.  Given that all of this terrain funnels into to deep gullies, we opted for some less hazardous options characterized by open slopes leading to spines in trees.  The snow was smooth cold wind buffed powder and the run was excellent.  At the bottom, Adam immediately claimed “best of the year.”   The season is now only a week old, but I wouldn’t be surprised if that run stays high on the list for quite a while.

Fixed Mortgage Rates Now at Historic Lows…

Fixed mortgage rates are now at historic lows.  “No Point” fixed rates are just below 5% and “One Point” rates are below 4.75%.  This drop was a direct result of the Fed’s announcement, yesterday, that it plans to expand its purchasing of mortgage backed securities. 

With rates at these levels, many homeowners will benefit from refinancing.  Monthly savings from refinancing a $300k mortgage at 6.25% to a new loan at 4.75% are close to $300.  I am expecting a busy holiday and new year.

Snow in Tahoe…

At last, there is snow in Tahoe.  The storm started late last Friday night, but really got rolling Sunday and Monday.  Now there is 18 or so inches at lake level and more than 3 feet in the mountains.  This is great news for skiers, ski areas and the local economy. 

I went out yesterday morning with Jeremy Benson, Jay Lynn and Adam Rucido to ski a lap on Sherwood.  The snow was cold, light and deep.  This made for fun, but slightly scary skiing, given that there is no base to speak of.  One more storm will do the mountains well, but ski season has officially begun.

   

Amazing Mountain Biking Conditions in Tahoe…

Rain and snow followed by warm sunny weather has made for amazing mountain biking conditions in Tahoe.  Some snow and mud remain in places, but overall, the dirt is as good it gets.  Both Saturday and Sunday were legitimate “powder days” and I’m sure it is only getting better.  If you have the time, go out and get it before winter really shows up.  The clock is ticking.

The Bright Side…

Current economic news is very negative.  Unemployment is high and moving higher.  Weak consumer finances and confidence have translated to reduced consumer spending.  Each phenomenon reinforces the other, which means things are going to get worse.  So what is the bright side?  Here are a couple thoughts.

The few people that have been living within their means and saving are now in a position to buy assets at reduced prices.  This is true for real estate and stocks.  It is also true for consumer goods because a lot of products will go on sale early this year. 

Also, the government will likely be forced to take a central role in stimulating the economy.  If it does this by sponsoring research and development into new technologies for solving our energy and environmental challenges, new engines of economic growth could be discovered.  The near future looks tough, but hopefully the distant future will be better for it.  

Also, money is not everything.  The mountain biking conditions in Tahoe this weekend should be amazing.  I will be out there focusing on another positive, tacky dirt.

New and Old…

Barack Obama is now the president elect.  This marks a new era for the US.   Whatever your political inclination, it is pretty amazing. 

Now for something old and vastly less important, but still pretty interesting.  Over the weekend, I went with my girlfriend Anya down to Bishop to do some climbing.  On the way back, we made a side trip to the gold rush boom-town turned preserved ghost town of Bodie. 

Gold was first discovered in the area that is now Bodie during the late 1850s.  By 1880, the town was thriving with 10,000 or so residents, despite it’s location at above 8,000 feet in the mountains South East of Bridgeport.  As quickly as Bodie boomed, it faded away.  According to information provided by the Park Service, gold valued at $900 million in today’s dollars was mined in Bodie, but still most claims proved unprofitable.  Also two large fires burned large portions of the town.  By the end of World War II, only a couple people were left.  Now it sits abandoned, but preserved. 

There is still writing on the chalk board in the school house, un-used coffins in the morgue and dust covered furniture in the homes.  Walking through the streets and peering in the windows is like looking back in time.  Definately worth a visit.

Here are some photos

   

  

And a link.  http://en.wikipedia.org/wiki/Bodie_State_Historic_Park

Fed Cuts Half Point to 1%…Stocks Decline, Mortgage Rates Steady

The news on today’s Fed cut is this: It was expected and likely won’t significantly help the economy.  The policy statement acknowledged that the economy has slowed significantly and that further “downside” risks remain.  It also noted that lower energy and commodity prices are promoting “price stability.”  This means that inflation is now much less of a concern than it has been over the past 6 months.  At 1%, the Fed Funds Rate is at it’s lowest level in many decades, yet the statement keeps the door open for further reductions. 

Stock prices were all over today, but the Dow closed down about 80 points.  10 year treasury yield moved up to 3.85% and mortgage rates remained steady.  If tomorrow brings a change in mortgage rates, it will probably be for the worse.  I do think, however, that rates will soon dip lower again. 

Click this link to read the Fed Statement: http://www.federalreserve.gov/newsevents/press/monetary/20081029a.htm

Mountain Biking in the Lakes Basin…Graeagle to Elwell and Back

Last Sunday, I finally completed a ride in the Lakes Basin that I had been wanting to do all year.  I ended up going solo, which was cool.  Generally, I prefer partners in the mountains, but sometimes being alone is nice.  4 hours of quiet can be hard to come by these days. 

I started the ride at the market in Graeagle and rode up the Gold Lake Highway about 6 miles to the Bear Lake trail head.  From there I rode along Bear Lake and above the south shore and east shores of Long Lake towards Mt. Elwell.  Eventually, I went over the top of Elwell and descended north back towards Graeagle on the Mt. Elwell Trail and Smith Creak Trail. 

This was an amazing ride.  The decent from Elwell to town is about 3500 vertical feet and the riding is generally very good – some steep and rocky terrain, but lots of fun, smooth single track too.  All in all, this was one of my best rides of the year.

For a map of the trails in the Lakes Basin, click this link. http://www.sierratrails.org/web/pages/events.html

  

  

Just to be current, rates are now up…

Since rates were last down, they have gone up.  30 year fixed rate pricing is now above 6.5% with no-points.  The Fed is meeting later today and a significant cut is likely, so it is safe to expect more movement.   Look for another, more thorough, update after the announcement.  

All buyers should be in close contact with their mortgage people.  Rates are moving so much that from one day to the next, potential monthly payments are changing significantly.