Weekly News (October 26, 2022)
Mortgage Interest Rates Review
(Fairway Asset Corp. 10/12/2022)
30 yr fx (%)
|15 yr fx (%)||FHA (%)||10 yr Tr Y (%)||5 yr Arm (%)||
7 yr Arm (%)
A year ago
|A month ago||5.999||5.125||5.500||3.589||5.875||
Federal Fund Rate: 3.00 -3.25% Prime Rate: 6.00-6.25%
LG Electronics in Englewood Cliffs opens hands-on learning center: 잉글우드 클립스에 본사에 LG 과학관 개장
- Construction of the 350,000 sf building –LG HQ in U.S. was completed in 2020, but its opening was delayed by the pandemic. Now, 2 years later, the company is beginning to welcome visitors and more of the site’s 900 employees to the $300M building.
- The LG Exploratorium was designed to give elementary and middle school students a chance to learn about science, technology, engineering and math in a hands-on, immersive environment.
- The LG HQ building was awarded Platinum for LEED and more than 1500 trees were planted at the campus, and nearly 30% od the building’s electricity is powered by solar energy, the company officials said.
60,000 Rent-Controlled Apts in NYC are Vacant: 렌트안정 아파트, 6만개 비었다
(Korea Daily 10/20/2022)
- A local media, The City reports that 61,593 units among rent-controlled units in NYC were vacant last year which is close to double of vacant units(36,185) in 2019
- This year rent-controlled apartment can raise rent only 3.25% for one year lease case while average rent for 1Br raised about 20% in NYC. Many unit owners keep vacant.
- In the past, unit with one year vacancy can raise up rent by 20%, which was called “rent-controlled unit bonus increase”. But this law has been nullified because many owners take advantage of it.
HyunDai Motors Group Breaks Ground in GA: 현대차, 조지아 전기차 공장 첫삽
(Korea Times 10/26/2022)
- HMGMA(HyunDai Motors Group Metaplant America) had a ground breaking ceremony for EV and Battery plant in Brian County, GA on 25th. ( 620 Stiles Ave, Savannah, GA)
- New facilities represent U.S. investment of approx. $5.54B on about 3000 Ac lot, and commercial production to begin 1st Qt, 2025 with a annual capacity of 300,000 units.
- Hyundai Hope, Hyundai Hope on Wheels, Genesis Inspiration Foundation and Kia Accelerate the Good donate $1.54M to a variety of GA charity initiatives.
Housing Market suits Some Buyers Just Fine: 현 주택시장이 괜찮은 구입자들도
- Home prices have jumped, mortgage rates are rising fast and the economy might be heading to a recession. The potent mix of challenges facing buyers has slowed the housing market, but millions of homes are still changing hands this year.
- Some buyers are finding that they would prefer to hunt now than deal with the bidding wars and sight-unseen purchases that defined last year’s frenzied market.
- Now they can take their time, land on a reasonable price and keep all the protections in place, such as inspection, appraisal, and mortgage contingencies.
Booming Warehouse Market cooling down: 활황 웨어하우스도 찬 바람
(Korea Daily 10/24/2022)
- Cushman-Wakefield reported the vacancy rate of warehouse in U.S. is 3.2% in 3rd Qt which is up 0.2% from the 2nd Qt. This is the first time decline for the last 2 years.
- New lease for warehouse in 3rd Qt is 163.1M sf while it was 274.4M in 2nd Qt.
- Companies are reducing their inventories now, which they increased till the beginning of this year due to supply-chain disruption.
- Big chain markets like Target, Walmart, Nike are reducing new orders due to customers’ weak consumption and are trying to move inventory stocks.
Climbing Interest Rates Crimp U.S. Home Sales: 이자률 상승이 주택거래를 막아
- U.S. existing-home sales fell for an eighth straight month in September, the longest streak of declines in 15 years, as the once-booming housing market becomes a bigger drag on the U.S. economy.
- Sales of previously owned homes declined 1.5% in September from the prior month to a seasonably adjusted annual rate of $4.71M, the weakest rate since May 2020, NAR said.
- Despite the sharp decline in sales, home prices are rising on a year-over-year basis, in part because of supply remains tight. But price growth is slowing from its red-hot pace earlier in the year.
Existing home sales, Median price, DOM
Apartment Demand Cools After Sharp Increase in Rents: 렌트비 급증에 아파트 수요 감소
- Americans are renting fewer apartments as its lowest level in 13 years, after a long stretch of record-high rents.
- Some renters are choosing to take on roommates, while others are boarding with family or friends. More people are opting to stay longer in their parents’ home or moving back in, rather than pay steep rent increases, recent USB survey.
- Apartment demand in the quarter, measured by the one year change in the occupancy units, was the lowest since 2009, when the U.S. was feeling the effects of subprime crisis.
Occupied rental units in the U.S., change from a year earlier
Occupied rental units in different area
Fed Eyes Slowing The Pace of Rate Increases: 연방 준비위 금리 인상 늦출 가능성 검토
- The Fed officials are barreling toward another interest-rate rise of 0.75% at their meeting Nov. 1-2 and are likely to debate then whether and how to signal plans to approve a smaller increase in December.
- Some officials have begun signaling their desire both to slow down the pace of increase soon and to stop raising rates early next year to see how their moves this year are slowing the economy.
- Meantime, Cleveland Fed President Loretta Mester has signaled she would favor rate rises of 0.75% at each of the Fed’s next two meetings because there hasn’t seen progress on inflation.
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