Weekly News (Feburary 28, 2024)

Mortgage Interest Rates Review

United Mortgage Nation  2/28/2024

 Federal Fund Rate: 5.25 -5.50%        Prime Rate: 8.25 – 8.50%  

Related Companies’ $12B Hudson Yard Casino bid

리레이티드 사, 허드슨 야드 카지노 제안서 제출   

CRAIN’S   2/26/24

• The developer Related Companies’ proposal for Hudson Yards casino  would entail 3 Skyscrapers, an office tower, and 1,500 apartments to be built on a platform above the undeveloped Western Rail Yards – amounting to a $12B investment, according to plans filed with the city last week. 
• Related is gunning for one of three downstate casino licenses  to be awarded by the state in the coming month, partnering with Las Vegas hospitality giant Wynn Resorts.   

Related Companies’ casino proposal

Home Sales Rebounded in January After Slide

하강후  1월 주택 판매, 다시 상승

WSJ  2/23/24 

• Mortgage rates have fallen about a percentage point since last fall, spurring some buyers to return to the market even though home prices remain near record highs.
• Home sales increased 3.1% in January from the prior month to a seasonally adjusted annual rate of 4 million, the highest level since August, the NAR said Thursday.  January existing-home sales fell 1.7% from a year earlier.
• The national median existing- home price rose 5.1% in January from a year earlier to $379,100, NAR said. 

U.S. Median Home Price

Home Price will rise more than average this Spring? 

올봄 주택가격 평균 이상으로 상승 전망 

Korea Daily   2/28/24 

• Zillow Chief Economist said “Home Tour Activities” report on the last President Day reveals 19.4% increase from the beginning of the year. 
• Home Mortgage rates provided impact to the prospective buyers, but the current market shows the strong demand is neutralizing that effect.  
• Construction industry also reported strong demand this year. Toll Brother’s CEO said in the executive meeting last week that Jan 2024 showed strong demand and said they need to increase the forecast.  

Boom in Warehouses Fades

웨어하우스 호황기가 식어가… 

WSJ   2/28/24 

• Transportation and warehousing employment in the region more than tripled in the decade to Dec 2022, accounting for 44% of total job growth in the metro-area around Stockton, San Joaquin County’s largest city.
• But there are unmistakable signs of cooling. San Joaquin County broke ground on roughly 364,000 square feet of new warehouse space in 2023, down from almost seven million in 2022, according to CoStar.
• County leaders are responding by trying to upgrade local skills and diversify into less vulnerable sectors. The region plans to use state grant money to build training programs to prepare workers for better-paying jobs repairing those warehouse robots or in other manufacturing careers.

Warehouse & transportation employment, change form a year ago

Notable Economist is Optimistic for 2024

정평의 경제전문가, 2024년 경제 낙관    

WSJ   2/23/24 

• Goldman Sachs is upbeat about the economy this year. Its economists see healthy growth of 2.3%, unemployment staying below 4%, and the probability of recession at just 15%— all more optimistic than the consensus. And they see inflation, excluding food and energy, continuing to fall, to a little over 2% (using the Federal Reserve’s preferred measure) by year-end.
• Why care about Goldman’s forecast? First, because its economists have been firmly in the soft-landing camp, which now looks prescient. Second, Jan Hatzius, the firm’s chief economist, made an equally out-of-consensus, and prescient, call in the opposite direction in 2008. Back then, he correctly warned that mortgage defaults could cause a severe recession.

Economist projections vs. results

Nvidia Sales More Than Trip

엔디비아 영업실적  3배로    

WSJ   2/22/24

•  Nvidia’s sales more than tripled in its fourth quarter, as the semiconductor maker scrambled to meet the demand for its chips that are powering new artificial-intelligence systems.
• The company’s stock has soared, including a rise of about 8% after its earnings report on Wednesday. Nvidia crossed the $1 trillion valuation mark in June. 
• Nvidia had revenue of $22.1B in its most recent quarter. Net profit was $12.29B, compared with $1.41B a year earlier.

Nvidia’s profit and stock share

Macy’s to Close 30% of Its Stores

메이시 백화점, 점포 30% 를 닫을 예정

WSJ   2/28/24 

• Macy’s new boss, Tony Spring, says the department-store chain needs to shrink.  The retailer said that it would close about 150 underperforming Macy’s stores, or about 30% of its fleet, over the next three years. It will focus on upgrading its remaining 350 Macy’s locations, while also opening smaller versions of its namesake chain and adding Bloomingdale’s and Bluemercury locations.
• The company says the 150 Macy’s stores slated for closure represent about a quarter of its gross square footage but less than 10% of sales. It expects $600 million to $750 million in proceeds from closing stores and distribution centers by the end of 2026.

Macy’s Store Count by brand