Weekly News (December 2, 2020)
This week’s Interest Rate (49th Week)
(By Fairway Asset )
|30 yr fx(%)||15 yr fx(%)||FHA(%)||10 yr Tr Y (%)|
|A year ago||3.750||3.25||1.917|
|A month ago||2.875||2.490||2.625||0.797|
(The rate based on 25% down payment with 740 above credit score)
Prime Rate:3.0% / Ref IR: 0.00- 0.25% .
Englewood Cliffs Apartment complex project is facing hindrance
( Korea Daily 12/2)
- “Englewood Cliffs Concerned Citizens” filed a suit with county supreme court against the town government who has approved the apartment complex at 800 Sylvan Ave, claiming that the special meeting for the project approval was not held openly and fairly: 1) it was open on Sunday afternoon 2) the subject for this project was not clearly specified on the notice letter 3) Zoom meeting limits only100 residents.
- As the result of the election in Nov, the republican councilmen are 4, including MyungKeun Park, out of total 6, which might affect the result of the decision in the future. The republican is opposing this project in general.
- The approved project plans to build 450 units including 90 low-income units.
1 out 3 small businesses have closed in NJ and NY
(Korea Daily 12/1)
- According to Track-Therecovery.org which is under Harvard University, 27.8% of 1.78M small businesses in NY have closed their operation due to COVID-19. NY currently classifies business under 100 employees as a small business and they take up 98% of total number of business in the state. The number was improved from 52.5% in April this year.
- In NJ, 31.2% of total 860,000 businesses have closed and it was 5.9% in April.
- NJ governor Murphy is considering a lock down again due to increasing positives in the state.
Retailers seize chance to become property owners
- Struggling shopping malls are finding an unexpected boost from bargain-hunting retail operators. In Stamford, Conn. the Stamford Town Center mall lost popular tenants like H &M, Apple Inc, and Talbot to a competing shopping center that opened last year only 8 miles away. In Oct, home-furnishing company Safavieh purchased Town Center mall at $20M.
- Home Depot, Inc is planning to relocate its basement store in Manhattan’s Upper East Side a few blocks away to four-story store currently occupied by Bed Bath & Beyond Inc.
- Swiss high-end clothing retailer, Akris purchased three buildings on New York City’s Madison Ave. at $45M – a decade-low price for the ritzy neighborhood on a per-square foot basis – including the building that accommodates its Manhattan store.
0.5% Refinancing fee will be charged from Dec
(Korea Times 12/2 )
- Adverse market fee will be charged for Ri-Fi loan cases which will make Re-Fi less beneficial. Originally this fee increase was planned 3 month ago, but it is delayed till Dec.
- This fee is exempted for the loan which is smaller than $125,000.
- For the $280,000 loan case, the fee will be about $1,400 which will affect mortgage interest rates increase of 0.1-0.15%.
- According to FHFA, the total loss of Fannie Mae and Freddie Mac is $4B this year.
Fannie Mae and Freddie Mac might be privatized faster than expected
(Korea Daily 12/2 )
- Trump cabinet is speeding up the privatization of these two organizations before Trump ends this term. Recently FHFA has decided that two organizations must have the minimum capital of $283B. Currently Fannie Mai an Freddie Mac have $35B. The rationale is the deficiency would have to be added from private funds.
- The concerns are 1) these two organization become profit companies which means they will force higher mortgage interest rates 2) FHA types of loan might be disappeared and 3) this decision is not by the congress, but by the secretary of treasury department.
Conforming loan limit extended to $820,000
(Korea Daily 11/30)
- Fannie Mae and Freddie Max increase its conforming loan limit 7.4% next year. Such as NJ, NY where the loan amount can be more than 150% than other area, the limit becomes $822,375 for high balance and $548,250 for single family loan.
- Two family house loan limit becomes $702,000 and high balance case is $1,053,000.
- Conforming loan limit has been increased for 5 consecutive years.