Weekly News (July 6, 2023)

Mortgage Interest Rates Review

(Fairway Home Loan 7/5/2023)

Federal Fund Rate: 5.00% -5.25%        Prime Rate: 8.00%-8.25%

New Jersey passed $54B Budget(2023-2024): 뉴저지 주 545억불 예산안 확정 

(Korea Daily  7/3/23)

• The budget $54B, which was more than the originally proposed $53.1B, includes additional pay for ANCHOR, expanding Childcare credit, and “Stay NJ” program.
• Stay NJ program’s eligibility is a senior over 65 and with under $500K income. The maximum reduction of the annual property tax is $6,500 and it will be effective from Jan 2026.
• There is some uncertainty whether they can start Jan 2026 and that is the reason they will increase the ANCHOR benefit $250 out of total budget of $2B for the program.

‘The SPA Club’ opened in Manhattan: ‘더 스파 클럽’ 맨하탄에 그랜드 오픈

(WSJ   6/30/23)

• The SPA Club opened at 22 W 32nd St, #3/4F, Manhattan, NY, near the Penn Station (T:212 502 4185)
• The SPA Club operates 24 hour and the operation is managed by licensed employees. The facility provides VIP rooms, Couple Private rooms ( Bridal showers & Groom showers), Party rooms( 2- 20 people), etc.
• As one of K-culture, the SPA club will provide Korean style sauna with comfortable, memorable environments and atmosphere.

New Home Inventory dropped 29% last week: 신규주택 매물 20% 감소, 집사기 더 어렵다

(Korea Daily   7/5/2023)

• According to Realtor.com, new home inventory reduced 29%, compared to the same price period last year :6/18 – 6/24 while the previous week the decline was 22%.
• Overall inventory was lit lower than the last year.
• The recent decline of the new home inventory is due to the recent interest rates increase, close to 7%. Meanwhile home buying demand by younger generation is increased.
• Some experts said the current home market is a kind of stagflation – home price is going up while the transaction is declining.

U.S. Sees Boom in Factory Building: 미국에 생산 공장 짓기가 호황

(WSJ  7/5/23)

• On Monday, the Commerce Department reported May construction spending figures was up 1% in May from April, putting it up an eye-popping 76.3% from a year earlier. In the first quarter, Commerce Department figures show that spending on manufacturing structures came to nearly 0.5% of gross domestic product—the most since 1991. In the second quarter, that GDP share looks destined to be higher.
• The Chips Act includes incentives for investing in semiconductor production, while the IRA includes incentives for items such as the production of electric vehicles and using domestically produced content. Economists at Goldman Sachs note that the uptake in these incentives appears to be surpassing earlier estimates.

Monthly construction spending on manufacturing

Home Building Lifts Lumber Producers: 주택 신축 성장이 목재 생산업 부추겨

(WSJ   7/3/23)

• Annual housing starts rose in May about 1.6 million, the Census Bureau said last month. That is 22% more than in April and the most since the Federal Reserve began raising interest rates early last year to cool the property market and squelch inflation. It also means builders are going to need a lot more wood.
• Wood-products firms were among the leaders of the pandemic stock rally, but, the stocks slumped when wood prices fell back to earth and higher interest rates slowed the housing market last year, but their star has risen anew with investors.
• In near future, wood prices are likely to rise than fall, said Ketan Mamtora, a market analyst and noted forest fires disrupting production in Canada, where producers need relatively high prices to operate profitably.

Housing Starts & Lumber stock performance

U.S. Economy Shows Surprising Vigor: 미국 경제 놀랍게도 강세 보여  

(WSJ    6/30/23)

• Fresh signs of labor market strength reinforced a picture of an economy with broad-based momentum despite rising interest rates. Layoffs retreated last week and economic growth was stronger than initially reported in the first quarter, the government reported Thursday. Other recent data showed rising new home sales, orders for long-lasting goods and consumer confidence.
• At the start of the year, many economists forecast a recession to materialize by now. Instead, the economy has continued to grow, even in pockets sensitive to higher interest rates. The housing market is a key example. A historically low number of existing homes for sale has helped push up sales of newly built ones. New home sales rose by double digits in May. Robust consumer spending and the solid jobs picture are bolstering the economy.

Initial jobless claims

Apple Closes above $3T Value in Market Milestone:  애플,세계 최초로 시총 3조 달러 뚫었다

(WSJ   7/3/23)

• Apple’sheady market value has little to do with its current business, and much to do with what might be yet to come.
• The company used its Worldwide Developers Conference earlier this month to introduce its long-awaited augmented-reality headset called the Vision Pro. The device had been the subject of leaks and rumors for months, which helped drive the stock to a gain of 39% for the year ahead of the conference. That was the biggest run the stock has seen ahead of the annual June event since 2012.
• The strength of Apple would be a creative power through combination of software and hardware including virtual reality, AI, and self auto-driving technology. Steve Jobs and Steve Wozniak founded Apple in 1976.