Weekly News (July 1, 2020)
This week’s Interest Rate (27th Week)
(By Fairway Asset )
|30 yr fx(%)||15 yr fx(%)||FHA(%)||10 yr Tr Y (%)|
|A year ago||3.875||3.39|
|A month ago||2.999||2.750||3.250||0.672|
(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.
NJ State will start Rent Support program from 7/6
(The Korea Daily 6/29)
- NJ DCA will spend $100M of COVID-19 Emergency Rental Assistance Program to help people with COVID-19 hardship of rent payment. The application can be filed through online and the recipients will be selected by lottery.
- The qualification is 1) NJ residents 2) Rent payment is over 30% of income 3) Annual income limit: Bergen county →$78,500 for 4 people /Hudson county→ $78,900 4) Proof of COVID-19 hardship
- Rent support amount will be a reference standard rent or actual rent whichever is lower the supporting period will be 6 months.
- Website: nj.gov/dca/divisions/dher/offices/cverap.html
NY, Manhattan homes for sale nearly doubled last week
(TRD/Jason Shim 6/30)
- New listings poured onto the Manhattan market last week as New York City’s brokerage community got back to work.
- Last week’s new listing volume marked a 97 percent increase year-over-year compared to the same week in 2019, when 279 listings went live.
- Contract activity is still far behind, however. Only 69 properties went into contract last week, a 68 percent drop from the 213 homes that inked deals in the final week of June 2019.
NY Koreatown Association helps store for reopening on 32nd Street
(The Korea Time 6/29)
- The Association chairperson JungHoon Lee decided to distribute 20,000 masks to the stores on 32nd. The association asked the stores to keep the Street clean and comfortable environment.
- Two types of outdoor seating are available: Sidewalk Seating and Roadway Seating.
- Sidewalk Seating allows 3 feet from the building. Roadway seating allows upto 8 feet from the curbside with protection guard of 30-36 inch height and 18 inch width: 6 feet between tables and 15 feet from a hydrogen
NY Governor Cuomo signs bill to extend eviction protections
(TRD/Jason Shim 6/30)
- A state bill extending eviction protections for some tenants — but allowing money judgments for nonpayment of rent — was signed into law by Gov. Andrew Cuomo Tuesday evening.
- The bill would extend eviction protection to tenants by allowing them to use Covid 19-related financial hardship as a defense in eviction proceedings.
New Home sales shows bright future
(The Korea Times 6/26)
- NAHB and Wells Fargo reported that Home Market Index rose to 57 in June, which was a big jump by 21 from 37 in May. This was the biggest jump up since 1985 when they started using this index. If it is above 50, construction industry sees a bright future. In March, the index was 72 and it was dropped to 30 in April.
- NAHB Chairperson Dean Mon said housing market is leading economy recovery with reopening US. MBA also reported that mortgage application in May was increased 11% and home buyers who felt shortage in existing homes move to new home market, especially in rural area.
Pending home sales in May rose 44.3%, reported NAR
(The Korea Daily 7/1)
- NAR announced that May pending home sales was increased 44.3% which was far more than forecasted 15%. This record is the biggest number since 2001.
- Lawrence Yun mentioned that home market recovery is very strong and the market shows the desire of owning homes are still huge.
- Meantime, the inventory in May has dropped 19% from the same time last year.
US New Home price rose 4% in April
(The Record 7/1)
- US home prices rose in April for the eighth straight month, even as sales stumbled, a sign the coronavirus has had little impact on real estate values.
- The S&P CoreLogic Case-Shiller 20 city home price index climbed 4% in April, the largest gain since December 2018, up from 3.9% in March.
Asian population is increased 30% during 10 years, reported The Census Bureau
(The Korea Times 6/26)
- According to the recent Census report on 6/25, Asian population in US is estimated to 22,861,985 which shows 3% increase for the last 10 years while Spanish shows 20% increase, African American shows 11.6% increase, and White shows 4% increase.
- Most increase in Asian population is due to immigration which takes two thirds. The area with highest Asian population(1,716,196) is LA county in Cal and the fastest increasing area is Forsyth County in GA→ 230% growth in 10 years.
- Hispanic population is 18.5% in US while Hispanic under age 16 shows 25.8%. African American under age 16 shows 17.7% while White under age 16 shows below 50% which is the first time in history to show less than a half.
- Over all White population is 60.1% which is the lowest in US history.
About 200 companies might file the bankruptcy until the end of this yea
(WSJ /Korea Times 7/1)
- On 29th, the USA Today reported that 12 medium and big companies filed bankruptcy: Chapter 11 due the first 3 weeks in June which might be the prelude of massive bankruptcy files this year.
- Ending government support of $600 per week (PUC) in July will trigger individual bankruptcy too, forecasted American Bankruptcy Institute.
- Hertz, who is the 2nd biggest rental car company, J Crew, Neiman Marcus, Pizza Hut, who has about 1200 stores in US, were added to bankruptcy line up. Also many shale gas and oil companies are in financial distress due to low price due to low demand under the pandemic.
- S&P estimates the default rate for speculative grade US companies will reach 12.5% in the 12 month period ending March 2021, topping the 2009 peak which was 12.1%. It was 4.7% at the end of May while it was 2.3% level a year ago.