Weekly News (Februray 1, 2023)
Mortgage Interest Rates Review
Fairway Asset Corp. 2/1/2023
30 yr fx (%)
|15 yr fx (%)||FHA (%)||10 yr Tr Y (%)||5 yr Arm (%)||7 yr Arm (%)|
A year ago
A month ago
Federal Fund Rate: 4.25% -4.5% Prime Rate: 7.25%-7.50%
Multifamily housing proposal in Franklin Lakes: 프랭클린 레이크에 585 유닛 아파트 건축 예정
- A proposal to build 585 market-rate multifamily housing units on 88.7 Ac, former IBM office complex, will be presented Wednesday night by the developer, the Hekemian who is the contract purchaser.
- The developer has also offered to donate 3.5 Ac site to the borough and suggests 55 affordable housing units can be built there. The property at 400 Parsons Pond Road is currently valued at $84M, with $31M for the land and $53M for the improvement.
- Developers typically seek a “builder’s remedy” to make affordable housing financially viable by building four marketable units for every affordable unit.
Gateway project gets momentum: “게이트웨이” 프로젝트 탄력 받는다
(Korea Daily 2/1/23)
- The President Biden visited NYC on 31st and promised to support $292M for New Hudson Tunnel construction which is a part of the Gateway Project.
- The New Hudson Tunnel will be completed in 2035 and the repair project for existing tunnels will be finished in 2038.
- Some experts said the President Biden puts efforts on the Infra Act, IRA, etc. to promote his re-election by traveling many places nationwide.
Garment District could be prime target for residential conversion: 가멘디스트릭이 주택단지 전환으로 최적합
- Much of the 120M sf of commercial space in the city that is ripe for residential conversion, which Gov. Kathy Hochul highlighted this month in her the State of the Union address, might sit in Manhattan’s Garment District.
- The buildings at 523 8th Ave, 520 8th Ave, 270 W. 36th St, 260 W. 36th St, 56 W. 36th St, 230 W. 36th St, 225 W. 36th St are the prime targets for the conversion.
- Residential is almost guaranteed to be successful, and more housing would improve the perceptions of the neighborhood and ultimately increase office demand.
Prime target for residential conversion
Sales Price Gap widens between condo and co-ops in Manhattan: 맨하탄 콘도와 코압, 가격차 심화
(TRD Jan. 2023)
- In Manhattan, condo units have been getting progressively more expensive than co-ops since the mid-1990s. In the 3rd Qt of 2022, the median price of a Manhattan condo was $1.63M, Co-op units were around half that at $851,000.
- Several factors: Condos are preferred by foreign buyers, who would rather not scrutinized by co-op boards and be easier to rent. Another factor is that more condos than co-ops have been built in recent years.
- NYC still has more co-ops inventory than condos, largely because developers turned many rental buildings into co-ops during a 1980 conversion boom. But the gap becomes smaller: In Oct, only 300 more co-ops units than condos were available.
Condo v. Co-op Median Price
Home Prices Fall 5 Months in a Row: 주택가격, 5개월 연속 하락
- The S& P CoreLogic Case-Shiller National Home Price Index, which measures home prices across the nation, fell 0.6% in November compared with October, the fifth straight month-over-month decline. On a year-over-year basis, the index rose 7.7% in November, down from a 9.2% annual rate the prior month.
- Existing-home sales dropped 17.8% in 2022 to the lowest level since 2014, as a surge in mortgage rates brought the pandemic-driven.
- A separate measure of home-price growth by the Federal Housing Finance Agency, also released Tuesday, found an 8.2% increase in home prices in November from a year earlier.
Case-Shiller Home Price Index
The Fed will raise baby step:0.25%: 연준 ‘베이비’ 스텝 인상 유력
(Korea Times 1/31/2023)
- The FOMC will held on 1/31(Tues) – 2/1(Wed) and there is 99.9% possibility that they will raise a baby step of 0.25% due to the facts that economy growth and inflation rates were coming down.
- The Fed raised 0.75% four times this year and 0.5% last month, and they will raise 0.25% this month which will make the deferral fund rate of 4.5% – 4.75%.
- In March, if the Fed raises 0.25% again, then the upper bound of the federal fund rate becomes 5.0%. Then there is 33.6% probability to start lowering by 0.25% in November this year while 33.5% of keeping the same rate.
ChatGPT Puts MS’s AI Efforts in the Spotlight: 챗GPT투자로 마이크로소프트 각광
- As the breakout success of OpenAI ’sChatGPT triggers a tsunami of excitement over AI, Microsoft Corp. is positioning itself at the forefront of what some see as the next wave of tech innovation.
- Microsoft earlier this month moved to jump-start the adoption of the technology by offering to let any company apply to use it through its Azure cloud-computing platform.
- Some speculate that AI-powered searches could eventually help Microsoft’s Bing search engine take market share away from AlphabetInc.’s Google with around 90% of the market.