Weekly News (August 19, 2020)
This week’s Interest Rate (34th Week)
(By Fairway Asset )
|30 yr fx(%)||15 yr fx(%)||FHA(%)||10 yr Tr Y (%)|
|A year ago||3.875||3.375|
|A month ago||2.875||2.375||2.625||0.605|
(The rate based on 25% down payment with 740 above credit score)
Prime Rate:3.0% / Ref IR: 0.00- 0.25%
Potential home buyer — Do not apply deferred payment or forbearance program. If applied , they need to complete the program as soon as possible, and make sure credit record is restored.
Fannie Mae and Freddie Mac add 0.5% risk adjustment on the conventional loans last Thursday night. The Interest rate went up this week.
New Jersey Governor allows 100% online classes for Fall semester
(Record /The Korea Times 8/13)
- Governor Murphy changed his position that public schools must have some face-to-face classes. With this new guideline, about 600 public schools can have an option of fully remote online classes. Those schools who choose 100% online classes must report the time line for opening face-to-face classes.
- The reasons of this guideline change are 1) Concerns of spreading Coronavirus 2) Lack of teachers who can do face-to-face classes. Teacher’s Union persistently has objected face-to-face class so far.
“Solaia” a new 14-story condo topped out recently in North Bergen, NJ
- Skyline Development Group announced new luxury condo at 8701 Churchill Rd, North Bergen, containing 70 residences. These Gold Coast living homes will range from 864 sf to over 1,900 sf with initial pricing expected to be $700,000’s to $2M.
- For more information, contact Skyline Development Group at 769 759 5463.
Paris Baguette in Koreatown Manhattan got sued for rent default
(The Korea Daily 8/15)
- The store at 6 W 32nd St is behind rent of $217,000 for 5 months and sued by landlord, Capstone Assets. The monthly rent is $28,000. Another store at 1270 Lexington Ave in Upper East is similar situation.
- Paris Baguette is running 12 stores in Manhattan while 6 of them were opened last year, and about 3500 stores worldwide.
COVID-19 Change: Exit New York move is increasing sharply
(The Korea Daily 8/18)
- According to “Hartford Current”, 16,000 people have changed their addresses from New York to Connecticut from March to June 2020, based on USPS data. 5,082 people actually have moved to Connecticut, which is 4 times of 1,361 in 2019.
- Also New Yorkers have moved to other states, far from New York as well. From March, 28% out of 1000 have moved to Florida, 16% to Texas and North Carolina.
- Among Korean community, similar phenomena can be seen: students from Korea packed and returned top Korea are increasing noticeably, a moving company (까치 이삿짐) said.
- Meanwhile, Bloomberg said house price went up 18% in Catskill in Hudson Valley and Kingston area due to Exit New York phenomena.
Re-Finance cost will be increased by $1400
(The Korea Daily 8/18)
- FHFA announced on 8/13 that Fannie Mae and Freddie Mac add 0.5% risk adjustment fee for re-financing mortgage amount, which is about $1400 additional cost for borrowers.
- Fannie Mae and Freddie Mac want to protect themselves from the pandemic situation and they handle 60% of total mortgage market.
- Meantime, this week mortgage interest rates begin to increase.
July, New Construction increased 22.6% from last month
(Record / NYT 8/19)
- Construction of new homes surged 22.6% which shows clearly recovery from COVID-19 era. The US Commerce Department announced on 8/18 that the new construction in July has increased to 1.496M(annualized) which is 22.6% up from June.
- The increase rate is the highest one since Oct 2016 and Feb 2020.
- Construction of single family homes was up 8.2% from June. Construction of condo and apartment soared 56.7%.
- Housing construction overall jumped 35.5% in the Northeast, 5.8% in the Midwest, 33.2% in the South and 5.8% in the west.
Mortgage default rate in New York is 2nd highest in US
(The Korea Daily 8/13)
- Among 10 big cities in US, Miami hit 14% and NYC hit 12% in May. Las Vegas default rate is 10.5% and Houston hit 10%. Average default rate in US is 7.4% in May.
- About a year the default rate in US was 3.6%.
Mortgage default rate is the highest in 9 years
(The Korea Daily 8/19)
- According to MBA, the 2nd Qt mortgage rate is 8.22% (Seasonally adjusted) which is the highest in 9 years. Those highest states are New Jersey, New York, Nevada, Florida, Hawaii.
- 6 M families has requested the forbearance program and the amount is 7.2% of total mortgage amount.
- Bloomberg said the reason is the unemployment due to COVID-19.
Others/Tech News : Tesla decided the split their stocks 5 for 1 on 11th
(CNN Business 8/12) – After the decision, Tesla stock hit $1,457.50
– After the split, Tesla stock will be about $300 per share.
Apple decided the split their stocks 4 for 1 on 11th
– Apple stick is about $450 and it will be about $100 after splits
Microsoft began cell phone (Android OP) business
– Coming back after 4 years since it abandoned its mobile business
-“Duo” sells at $1,399, a new dual screen Android, begins shipping in September