Weekly News (December 21, 2022)

Mortgage Interest Rates Review

(Fairway Home Loan 12/21/2022)

Federal Fund Rate: 4.25% -4.5%        Prime Rate: 7.25%-7.50% 

Bergen County Light Rail Extension– Green light: 버겐 타운티 경전철 연장안 탄력

(Korea Times/Daily   12/13/22)

• According to Star Ledger’s report on 14th, NJ Transit received $592,000 to study Bergen County Light Rail Extension project from FTA. With this 9 mile Light Rail Extension, those towns such as Ridgefield, Palisades Park, Leonia, and Englewood are connected by rail roads.
• The funds will be used for further research on local community development, its benefits and necessity, and it showed further possibility to receive the Federal level funds for the construction.
• The project has been idling for about 10 years since the former Governor, John Corzine announced the project in 2009, which will cost more than $1B.

KISS builds super warehouse in Savannah, GA: 키스, 조지아에 초대형 물류센터 설립 

(Korea Times  12/21/2022)

• KISS Group( Chairman: YongJin Jang) said on 19th that the company is constructing a 710,000 sf warehouse in Savannah, GA.
• The project will cost $121M and will create 396 local employment.
• KISS Group was established in 1989 and is the 3rd biggest in the beaty product industry, following Loreal, Estee Lauder. The company has distribution network in 103 counties worldwide and operates 13 foreign branch offices.

Once-Close New York, Florida Developers Eye  Site: 한때 가까웠던 개발사들, 개발지를 놓고 경쟁

(WSJ  12/21/22)

• New York Developer Stephen Ross(Related Cos.) and Miami developer Jorge Perez(Related Group) has a partnership for more than 40 years. Now that alliance – along with the arrangement to essentially stay out of each other’s home market – has dissolved.
• An early test of their new relationship could be one of the most valuable pieces of land in the U.S., a waterfront parcel on downtown Miami that was recently put on the market.
• Both men have expressed interest in the 15.5 Ac of land owned by  Genting Malaysia Bhd.

The Miami waterfront Lot

Mortgage-Market Redo Faces Test: 모기지 시장, 다시 시험대에

(WSJ   12/21/22)

• Higher rates squeeze home demand, but financial revamp makes 2008 repeat unlikely. The pandemic housing boom is over. But the bust will look nothing like the last one.
• Before the financial crisis of 2008, lenders barely bothered to verify mortgage applicants’ income. Today, they demand reams of evidence that borrowers can afford their loans.
• Home prices surged as the pandemic unleashed a housing boom over the past few years. At the end of June, total mortgage debt was 15% higher than it was at the end of 2007, but total home equity was 131% higher, according to Urban Institute data.

Value of U.S. Single-family housing market, in trillions

U.S. New Construction Permits declined: 신규주택 허가건수, 착공 모두 감소 

(Korea Daily  12/21/22)

• The Dept of Commerce reported on 20th that new home construction permits declined to 1.34M – annual rate – in Nov, which is declined 11% from the last month where the forecast was 1.48M.
• Among them, single-family house permits declined 7.1% which is the lowest since May, 2020.
• New construction starts reached to 1.43M in Nov which is 0.5% down from the last month. Single-family house was 828,000 which was also the lowest since May, 2020.

Mortgage Buydowns Make a Comeback: 모기지 “바이 다운“ 프로그램 다시 성행

(WSJ  12/19/22)

• Temporary buydown offer steep but short-term savings on mortgage rates. Borrowers get a much lower rate in the loan’s first year that gradually increases until it resets to a rate in line with market conditions at the time the loan was originated.
• They differ from standard buydown, in which buyers pay an upfront fee to permanently lower the loan’s rate. And unlike adjustable-rate mortgages, the loan reset to the original fixed rate.
• Buyers typically don’t cover the cost of temporary buydowns. Home sellers, lenders and builders can use temporary buydowns to win over buyers concerned about high rates.

Key Step in EV Subsidies Delayed Amid Foreign Pushback: 전기차 정부보조 세부사항, 해외기업의 불만으로 지연

(WSJ  12/21/2022)

• The Biden Admin on Monday delayed proposing detailed rules for new tax incentives for EVs, following pushback from European and Asian allies that the subsidy program discriminated against their companies.
• The Treasury Dept said details on the battery-sourcing requirements that EVs must meet to qualify up to $7500 in tax credit will be released in March instead of by the end of this year as planned.
• The rule requires the EVs have at least 40% of their critical minerals for batteries sourced in U.S. or countries that have free-trade agreements with the U.S., starting in 2023. That threshold rises to 80% in 2026.
• At least 50% of the components in the batteries must be manufactured or assembled in North America by 2024, with that percentage rising gradually to 100% by 2028

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