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Weekly News (June 30, 2021)

This week’s Interest Rate (21st Week)

(By Fairway Home Loan )

   30 yr fx(%)  15 yr fx(%) FHA(%) 10 yr Tr Y (%)
A year ago      2.899       2.375     2.625          0.750
A month ago      2.875       2.250     2.490          1.576
Last week      2.825       2.125     2.490          1.478
This week      2.875       2.125     2.490          1.485

Prime Rate:3.0% / Ref IR: 0.00- 0.25% 

  • Potential home buyer — Have a pre-approval first before the shop.  Now we have 48hour underwriting turn-around times for regular loans.
  • 2021 Conventional loan limit: Conforming SFR : $548,250/ Conforming high balance: $882,375 / Confirming 2 Family: $702,000/ Confirming High Balance: $1,053,000

 

LG Building in Englewood Cliffs, NJ received LEED Award – Platinum level

(Korea Daily    6/19)

  • USGBC (US Green Building Council) awarded LG Building LEED (Leadership in Energy and Environmental Design) Platinum level, according to the company press release on 18th.
  • The total site is 27 Ac and 60% is covered by green area: LG Solar panels are installed on the roof and spacious open layout with natural lights.
  • The company said that they achieved the goal to build the highest level of eco-friendly building in the world by receiving this award.

 

Mom-and-Pop Landlords Facing Tough Battle due to Eviction Moratorium

(Korea Times   6/29)

  • In U.S. there are about 17,000 buildings (23M units) that mom-and-pop small landlords own and they are facing very difficult time due to 1 month extension of eviction moratorium from 6/30 to 7/31.
  • There are over 6M renters in U.S. of which their rent is behind. Meantime building owners still have to pay the mortgage payment including tax and have to do building maintenance.

 

High Court Says CDC Lacks Authority

(NAR  6/30)

  • In a 5-4 ruling Tuesday evening, the U.S. Supreme Court said the Centers for Disease Control and Prevention (CDC) lacked authority to implement a blanket, nationwide eviction moratorium.
  • Although the court declined to lift the ban immediately, the ruling means the current moratorium will expire at the end of July.
  • For more than a year, mom-and-pop property owners have been pushed toward financial ruin as they upkeep their properties and pay their taxes and mortgages with no income of their own, said NAR president, Charlie Oppler.
  • The eviction ban was first issued in September 2020 during President Trump’s term and was extended by President Biden several times through the end of July.

 

Strong Home buyer demand will cool down after this Summer?

(Korea Times   6/29 )

  • According to USA Today’s survey, many home buyers who couldn’t succeed to buy homes this Summer might postpone their home buying till next Spring due to very low inventory in the market.
  • According to Zillow, inventory in May increased 3.9% from April and it is the first time to increase inventory since July last year.  However, inventory in May was 31.2% lower than a year ago. In general, inventory in May becomes a peak, which includes more listings in Spring time.
  • Many buyers who realized lower inventory along with increased home price might want to wait till coming Spring when they might expect lower home prices.

 

Would-Be Buyers Get Shut Out of Homes

(WSJ   6/28)

  • Surging prices in the turbo-charged housing market are sidelining many would-be buyers, with those who can’t afford big down payments often losing out. Half of existing-home buyers in April who used mortgages put at least 20% down, according to NAR survey.
  • In an April NAR survey of real-estate agents, 27% said sellers were unlikely to accept an offer with an FHA or VA loan, and another 6% said sellers would refuse such an offer.
  • FHA and VA loans lost market share to conventional loans.  FHA loans, which often go to first-time buyers, accounted for 10% of home purchases in the 1st Qt of 2021, the 2nd lowest level since 2008, according to Attom Data Solutions.
  • Surging home prices are also complicating appraisals, which means some buyers are being forced to shell out more cash than they had expected. When housing prices rise quickly, appraisal values don’t always keep up (which leads buyer to waive an appraisal contingency).

 

In April, home prices rose 14.6%

(Record/ Korea Time  6/30)

  • According to S&P CoreLogic Case-Shiller index, home price rose 14.6% in April compared to a year ago which is the biggest increase since 1987 when the collecting data began. Most home are sold above the listing prices.
  • Sales of existing homes have fallen for four straight months, likely because soaring prices have discouraged some would-be buyers. Still demand is strong enough that a typical home was on the market for just 17 days last month, NAR reported. Nearly 9 of 10 homes were on the market for less than a month.

 

CFPB Offers Aid On Late Mortgages

(WSJ    6/29)

  • Millions of homeowners who are behind on their mortgage payments would get added protections from foreclosure through the end of 2021 under a set of rules completed Monday by the CFPB (Consumer Financial Protection Bureau).
  • Under the rules, mortgage lenders generally can’t foreclose on a home without first contacting homeowners to see if they qualify for a lower interest rate or some other loan change.  If a modification isn’t possible or a homeowner doesn’t respond, the foreclosure can proceed after the rules go into effect on Aug. 31.
  • An existing foreclosure moratorium for borrowers with mortgages backed by the federal government expires July 31.

 

Home sale through online service

(Korea Daily  6/29)

  • CNBC reported that Taylor Morison Home is selling new construction homes through online.  Buyer will make decision on the style, color, amenities and options through online platform and close through online.  1500 buyers have registered for the first 6 weeks after they started receiving online appointments.
  • The company’s CEO Sherril Farmer said that home builder industry needs to adopt the necessary change as e- commerce evolves.  And she said not all the home buyers will buy homes through online, but we will provide any related services if anyone wants.

 

Bigger Apartments Come Back

(WSJ   6/30)

  • Developers try to meet millennials’ needs, accommodate shift to remote work.  Apartment sizes are getting bigger across the U.S., just as more people are looking for additional space while spending more time working at home.
  • In 36% of U.S. cities, apartments under construction are larger on average than those built over the previous five years, according to the report from RENTCafe – average 50 sf larger.
  • Developers say they are building units that offer more space to work and relax in, as a way to accommodate residents who are moving out of high-density cities and into suburban areas: “We are doing little things like adding built-in office and area where people can work from home in nooks and crannies”.

 


 

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Stephen Lee

He has been in Real Estate industry in about 20 years and has been Broker of Record for 9 years. His experience includes residential, commercial, and property management. Prior to involving with Real Estate business, he has been involved in the digital communication equipment industry utilizing his engineering background and education, including running own company. He has established C Land Realty in 2011 which has grown to staffing over 100 Real Estate agents and the annual transaction amount of over $110,000,000 today.

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