Weekly News (July 15, 2020)
This week’s Interest Rate (29th 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||2.999||2.750||3.250||0.814|
(The rate based on 25% down payment with 740 above credit score)
Prime Rate:3.0% / Ref IR: 0.00- 0.25%
FHA and VA loan rates are getting better. Many lenders still have COVID-19 overlays. Cash Out refinance available now for primary house. High Balance Investment is still not favorable. Portfolio loans such as bank statement programs and foreign national loans still have problems closing.
7900 outdoor dining permits in NYC are approved
(The Korea Daily 7/14)
- In 5 boroughs, 7900 permits were approved, but most of them are in dilemma due to somewhat complicated guidelines to set up. Among 26,000 restaurants in NYC, about out of 3 are opening outdoor dining.
- Among 7900 permits, Manhattan is 50%, Brooklyn is 25%, and Queens is 20%.
NY Subway will have to stop about a half of operation without help from Federal
(The Korea Daily 7/13)
- The Riders Alliance analyzed that MTA will have to reduce 50% of the budget, and therefore, stop 50% of operation without $4B Federal government funds in July. This reduction of operation might cause more delays for recovery from COVID-19.
- HEROES Act including MTA funding has passed in the House Representatives, but Republican has no plan to initiate in the Congress.
NY State fixed the cap of the property tax increase to 1.56%
(The Korea Daily 7/15)
- This limit of property tax increase for 2021 fiscal year will be applied to all counties, towns, 44 cities, and 11 villages. The increase cap has been 2% based on 2% increase of the consumer price. NYC is an exception to this limit.
- If a local government does not follow this guideline, there will be no State supporting funds to that local government.
New Jersey is having high-demand for single family houses
(The HanKyung /Joon A 7/13)
- According to Jeffrey Otto, president of Otto Valuation in NJ, sales of houses over $2.5 M rose 68% from a year ago. He forecasted NJ home price will be increased by 6% next year, which is the biggest jump since 2005.
- These phenomena are similar to worldwide big cities such as NYC, London, Paris, etc.
- Zillow economist Mathew Speakman said the demand for single family houses is increased 13% from a year ago.
New trends for bigger and smarter homes for big family after COVID-19
(The Korea Daily 7/13)
- After COVID-19 pandemic era, homes become space for office, gym, class room.
1. Bigger lot and more indoor spaces → prefer to more rural area
2. Smart bathroom with Bidet and touch-less toilet cover
3. Spaces for bigger family with multi-generation
4. Need of spaces for delivered goods and parcels for anti-theft, disinfection, and possible drone delivery
5. Healthy homes → No touch options by voice activation, Virus resistant surface equipment(metallic copper), Air quality monitoring
6. Compartmental layout than open layout
7. Creative home office space → in Kitchen, Bedroom, Attics, Basement, even Garage. Possibly mobile container in the back yard if permitted.
Before the pandemic, aging Millennials were already migrating to the suburbs
(The Daily Dirt/ Jason Shim 7/14)
- According to WSJ, 14 out of 15 fastest growing cities in the country were actually suburbs. Now, short term renters who fled the city amid the Coronavirus crisis are increasingly becoming buyers.
- Brokers are seeing increased buying demand in Connecticut, Long Island, Westchester county and even Northern New Jersey.
- Long-term workplace policies will affect the infrastructure priorities and whether the suburbs will remain an attractive option.
Trump rescinded the guideline to cancel Foreign Student visa with online classes
- After a week since new guideline announced, the US Government Admin cancelled the new guideline. Harvard and MIT sued the US Government along with over 200 opinion letters form colleges in US.
- There are about 1.1M foreign students in US, and they contribute $41B to the economy annually and support more than 458,000 jobs.
Korean owned Blockchain technology development co attracts industry attention
(The Korea Daily 7/13)
- According to NYT, Andrew Bag of Nesten developed a blockchain based network Gateway called G1, using “LoRa” bandwidth. It is community-based within 10 -20 miles, and faster and more accurate than GPS based system, which can interconnect with Wi-Fi, Bluetooth over Internet of Things applications such as smart parking, health monitoring in hospital, pet tracking, etc.
- Users will buy G1 which can be a network hub locally and, in return, Nesten provides a cryptocurrency, NIT. More traffic through G1 will get more NIT.
US Banks are preparing funds for loan default
- The largest banks signaled that the worst of the Coronavirus recession is yet to come.
Chase, Wells Fargo and Citi group said that they set aside $28B to prepare to cover losses as consumers and businesses to start to default on their loans
- Chase, the largest US banks by assets, said that it put extra to prepare for the unemployment rate that remains at double digits well into next year and slower recovery in GDP than the bank’s economists assumed three months ago.
- Heading into the current collapse, people in the US has taken on record amount of auto loans, credit card debt and student loans because of low interest rates for years.
Others/Tech News : SamSung started the development for 6G technology
5G is in beginning stage in the market. (10 times faster than LTE). 6G is 50 time faster than 5G and will be realized in 2028.