Weekly News (March 10, 2021)

This week’s Interest Rate (10th Week)

(By Fairway Home Loan/ Time Mortgage)

 Prime Rate:3.0% / Ref IR: 0.00- 0.25%
Interest rates went up last during two weeks, but it is kind of stabilizing.  The trend could be upward for next quarter
2021 Conventional loan limit: Conforming: $548,250/ Conforming high balance: $882,375

More competition for the State Senate position of Loretta Weinberg

(Korea Daily 3/9)

• As Loretta Weinberg, State Senate Majority leader announced, representing the 37th district, more competition arises among candidates.  The 37th district is consists of 13 towns including many town with Korean population concentrated such as Palisades Park, Fort Lee, Ridgefield, Leonia, Englewood Cliffs.
• Gordon Johnson (D.) and Valerie Huttle (D.), who are the members of general Assembly, are competing in Democrat primary.  If one of them wins for Weinberg’s seat in Senate, one position in General Assembly is available.
• Among local Korean politicians, including Christopher Chung, the current mayor of Palisades Park are competing fiercely.  Other candidate incudes Gloria Oh in Englewood Cliffs, Paul Yoon and Peter Suh in Fort Lee.

NY Governor Cuomo might be impeached

(Korea Times 3/9)

• Mounting sexual harassment allegations and other claims inappropriate behavior are increasing the likelihood that Gov. Andrew Cuomo will get impeached if he continues to ignore calls for his resignation.
• That scenario could put the tree-term Democratic governor on trial for his political life – and create sordid spectacle the likes of which New York has never seen, with multiple accusers potentially offering sworn testimony about unwanted kisses and creepy come-ons.
• The constitution gives the 150 members state Assembly the power to impeach officials by the vote of a simple majority, or 76 lawmakers.

$1.9T Stimulus Plan passed the Senate and House plans to pass it today

  (Korea Daily, CNN  3/9)

• House Democrats plan to pass the $1.9T coronavirus relief package on Wednesday morning.
• They aim to get it to president Biden so he can sign it before ley unemployment aid programs expire on Sunday.
• The Senate already approve the bill which includes direct payment of $1,400, additional $300 UI payment, vaccine distribution funds, and expansion of the child tax credit, and state and local government relief.
• The package is arguably the largest expansion pf the welfare state since Lynden Johnson’s Great Society.
• Treasury Secretary Janet Yellen mentioned that the worry on inflation is smaller than economic loss due to the pandemic.  Fed Reserve Chair said that the goal of the average price increase of 2% is far yet and he will be patient on temporary inflation.

Low housing inventory in US is serious

(Korea Times   3/9 )

• As inventory reduced, more buyer competition experienced. Even severe weather in some area becomes the situation worse.
• com said that inventory at the end of Feb is a half, compared to a year ago. Due to seller’s pullback phenomena, the number of listed properties between January and February this year are 207,000 lower than last four year’s average listed properties.
• Recent interest rates increase will affect the market, but it is not enough to cool down the hot market. In Fed, more than 55% of home sellers were experienced that offer and open escrow in 2 weeks.

(Data from NAR’s REALTOR Magazine)

U.S. Corporations show profit growth in 4th Qt 2020

(Korea Times  3/9)

•  According to CNN, companies with S & P 500 show profit growth in 4th Qt 2020 which is 3.9% and it is the first time showing growth in 2 years (The 4th Qt 2019 had shown 0.8% profit increase)
• The CEO of Earnings Scout said that performance downturn is over.  The GDP in 4th Qt 2020 had shown 4.1% increase in annual base.

It is not just Bitcoin that is huge. So is its Carbon Foot print

(NYT   3/10  )

• “Bitcoin uses more electricity per transaction than any other method known to mankind, and so it’s not a great climate thing”
• The annual carbon emissions from the electricity required to mine Bitcoin and process its transactions are equal to the amount emitted by all New Zealand.  Or Argentina.  To put this into perspective,, one Bitcoin transaction is the equivalent to the carbon foot print of 735,121 Visa transactions or 55,280 hours of watching YouTube, according to Digicominist.
• Question: Does the movement among investors toward companies that rank highly for environmental, social and governmental issues pose an existential threat to Bitcoin’s success ?
• Several companies are working on some counterinitiative ideas to turn Bitcoins green.

By the Numbers from NAR REALTOR Magazine

(REALTOR Mag Mar/Apr )

• 132,830: Number of RE licensees joining and rejoining NAR between 3/1/2020 and 12/31/2021
• 17%: Percentage of Realtors with less than one year of experience
• $49,700: Median gross income of REALTORS in 2019, up from $41,800 in 20198
• $8,900: Median gross income of REALTORS with two years or less.
• $6,290: Median business expenses of REALTORS in 2019.
• 73%: Percentage of REALTORS who said RE was their only occupation.
• 34%: Percentage of REALTORS who had a previous career in management, business, finance, sales, or retail.
• 8 in 10: REALTORS who are very certain they’ll remain active in the business for the next two years.