Weekly News (June 26,2024)

Mortgage Interest Rates Review

United Mortgage Nation  6/26/2024


30 yr fx (%) 15 yr fx (%) FHA 


10 yr Tr Y (%) 5 yr Arm (%) 7 yr Arm (%)
A year ago 6.499 5.875 6.125 3.772 6.499 6.499
A month ago 6.999 6.250 6.249 4.491 6.999 6.999
Last week 6.999 6.250 6.249 4.449 6.999 6.999
This week 6.899 6.125 6.249 4.254 6.899 6.899

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


Residential Sales Down & Price Up

          주택 거래는 감소, 집값은 역대 최고

Korea Times  6/25/24

  • According to NAR, residential sales in May reached to 4.11M which is o.7% down from last month and 28% down from a year ago, but price index for 20 cities in April went up 0.4% from a month ago and 7.2% up from a  year ago. 
  • Residential sales continuously declined form the previous month since March this year. 
  • Inventory was hit the bottom in Oct, 2023, the lowest for past 13 years, and increased in Jan – Feb  this year.
  • Construction starts was 1.28M which was down 5.5%  form a year ago which was the lowest since June 2020, and construction permits also declined 3.8% to 1.39M , which was also lowest since June 2020. 


Home Price Hit a record High, Limiting Sales

      주택가격 최고점, 판매 저하 영향   

WSJ  6/22/24

  • Home prices rose in May to a new high, with low inventory continuing to spur bidding wars among home buyers in some markets. The national median existing- home price in May was $419,300, a record in data going back to 1999, NAR said Friday. Prices aren’t adjusted for inflation. That was up 5.8% from a year earlier.
  • “Somewhat of a strange phenomenon, where we have low home-sales activity yet prices are hitting record highs,” said Lawrence Yun, NAR’s chief economist. “Affordability is a challenge.”
  • Buying a home is out of reach for many renters and homeowners alike. The mortgage payment for a buyer of a median-price home has more than doubled since before the pandemic, Yun said.


Jump in Insurance Costs  Strikes Condos 

            보험료 급상승으로 콘도 관리 휘청  

WSJ 6/18/24    

  • Board members of the Highland Park Community Association in Mission Viejo, Calif., were shocked to receive a quote for over $170,000, which was more than four times what the association paid in 2022. An additional 12 insurers declined to offer quotes, because wildfire risk.
  • The new policy provides up to $70.9 million in property coverage to this community of 208 townhomes and condominiums. But in the case of wildfire damage, the maximum coverage would be $2 million.
  • About 10 million households own condos, co-ops or townhomes, according to a NAHB analysis of the most recent census data. The median condo association fee is $480 a month, according to Attom. Those assessments pay for insurance, property maintenance and other amenities such as landscaping or swimming pools.


KKR Bets on Rent Rises with Its Biggest Foray into Apartment

      KRR 여전히 아파트 랜트비 상승기대에 투자

WSJ  6/26/24 

  • KKR has completed its largest- yet purchase of apartment buildings, the latest in a string of big-ticket deals, signaling that some of the most prominent investment firms are betting on a broad rebound for multifamily housing.
  • The New York-based private- equity firm paid $2.1 billion for more than 5,200 apartment units across the country, from California and Texas to New Jersey, KKR said. The deal for the multifamily properties, which are 18 new mid- and high-rise buildings, closed Tuesday.
  • Also In April, it paid $1.64 billion for a student-housing portfolio owned by Blackstone Real Estate Income Trust, and last month it bought an industrial campus in Nashville, Tenn.


Commercial Property Price Index

WSJ 6/26/24


Cash Trap Poses Danger to Some Americans

   캐쉬 트랩이 위험을 초래 할수도..

WSJ  6/26/24 

  • Americans have poured money into cash like investments since the Fed began raising interest rates, driving assets in money-market funds to a record $6.12 trillion earlier this month, according to the Investment Company Institute.
  • Now, Wall Street traders are betting rates have peaked and those investors face a choice: keep sitting on their cash as interest payments shrink or figure out how to redeploy the money.
  • But staying on the sidelines risks missing out on years of potential gains from holding a broad portfolio of stocks, bonds and other riskier investments.


Assets in Money Market/FFR/S&P Index

WSJ 6/26/24


Hyundai & Kia Zip Into the fast Lane of U.S. Car Market

 현대와 기아기 빠른 차선으로 미 자동차 시장에 질주

WSJ    6/25/24(Tue) 

  • Hyundai Motor and Kia already make some of America’s most popular cars, particularly in the hybrid category. Now geopolitics is helping them be even more competitive in the growing EV market.
  •  Shares of Hyundai have gained 85% since the end of 2022 while those of Kia have more than doubled. Hyundai is Kia’s largest shareholder with a 34% stake. The two companies reported record earnings last year, with both increasing their operating profits by more than 50% from 2022.
  • Geopolitics will provide another tailwind as affordable Chinese EVs face obstacles in America. Currently, EVs from the Korean automakers aren’t eligible for $7,500 tax credits under IRA, but that would change after Hyundai’s $7.6 billion manufacturing plant in Georgia opens later this year.


Hyundai/Kia annual profit

WSJ  6/25/24(Tue)

Hyundai is ready to produce EV in GA

       현대 자동차, GA에서 전기차 공장 가동 준비  

Korea Daily   6/25/24 

  • Hyundai EV Factory, Metaplant America(HMGMA) in Savannah, GA is ready to start operation to produce 2025 model IONIQ 5 as the first EV model in U.S. 
  • Beginning with IONIQ 5 EV, HMGMA will be ready to produce all EV for Hyundai, Genesis, Kia and will expand the operation continually. The company has invested $7.59B in this factory and will create 8500 employment.   Hyundai and SK On will build EV battery factory in Bartow County, investing $5B, which will create 3500 employment.(Kingstone, GA) ( Cartersville, GA – Hyundai Motors and LG Energy Solution)   
  • According to U.S. Automobile Research Center, the investment by Hyundai Group in GA could create 40,000 employment overall and expect $4.6B’s personal income.   


Join The Discussion

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Compare listings