Compare Listings

Weekly News (May 28, 2020)

This week’s Interest Rate (22nd Week)

(Fairway Asset )

  30 Y Rate: 2.999%/ 15 Year Rate:2.625%/ 10 Y Treasury: 0.692%/  FHA:3.490%
  Prime Rate:3.0% / Ref IR: 0.00- 0.25%

(The rate based on 25% down payment with 740 above credit score)

We have Special Programs for Owner Occupy and 2nd Home.  Conventional interest rate is lowest in history.
Government loans still have liquidity problems.  NYSE Re-Open today


Long Island and Mid-Hudson in NY re-opened 1st Phase

(The  Korea Times  5/26)

  • The Governor announced re-opening in Long Island from 27th and Mid-Hudson area from 26th.  The 1st phase includes construction, agriculture, fishing, hunting, manufacturing, whole sales, retail stores (pick up and street sale).  The Mid-Hudson area includes Westchester county where was the 1st place to lockdown.
  • With this re-opening, NYC is only area keeping lockdown which is planned to re-open around between 6/1 – 6/15.
  • Less than 10 people is allowed to have a meeting and social distancing is still reinforced.
  • NY Stock Exchange opened on 26th after about two month lockdown.


New Jersey allowed less than 25 people outdoor gathering

(The Korea Times  5/26)

  • The Governor announced that NJ allows outdoor gathering of less than 25 people from 22nd.  Also the state allows re-opening for public and private camp parks, but only with less than 10 people gathering.
  • Social distancing is reinforced, and wearing masks is strongly recommended.


Forgiving application for PPP will begin early Jun

(The  Korea Times  5/27)

  • According to SBA, PPP loans can be applied for forgiving 8 weeks after they received the funds and they will receive till October.  The companies can apply the forgiving up to 75% of the fund for pay rolls and 25% for rent, utilities, etc.
  • Meantime, Trump is considering to extend the current spending time of 8 weeks to 16 or 24 weeks.
  • Forgiving application for Individual PPP is not clear at the moment.


Commercial property investors are ready to jump in distressed properties 

( The  NYT   5/27)

  • Hoping to take advantage of wreckage in the wake of the Coronavirus pandemic, investors are preparing to snap up commercial real estate at rock bottom prices.
  • CPPI (Commercial Property Price Index) is decreased 9.4% in April from March.
  • Coming out of last downturn, investors that found deeply discounted properties profited by simply riding the recovery, but buyers in this new real estate cycle must calculate potential costs to redesign or improve properties to fit new social and health norms.


Buyer MiRae Asset is countersuing AnBang group to save $582M 

( Jason Shim/TRD   5/22)

  • The would-be buyer, South Korea’s MiRae Asset Global Investments is now countersuing the entity in control of Chinese insurer’s assets for the return of $582M contract deposit, accusing it of breach of contract and committing fraud: trademark disputes and deed disputes.
  • AnBang has sued MiRae last month intended to get the court to enforce the purchase contract.  AnBang claimed MaRae’s termination of the deal was “a classic case of buyer’s remorse” in the face of a global pandemic that frustrated to secure debt financing.
  • MiRae was ready to pay $50M non-refundable fee to lock in acquisition financing from a consortium led by Goldman Sachs.


New-home sales tick up in April, surprising experts.

( The Record   5/27)

  • US new home sales ticked up 0.6% 623,000 in April, a surprising gain amid the coronavirus outbreak that hints at the relative health of potential buyers.  This followed a decline of 13.7% in March as businesses and schools were closed in an efforts to contain the virus.
  • com senior economist George Ratiu suggested that the shelter –in-place orders might have encouraged more people to search for homes to meet their in a post-coronavirus economy.  They discovered the value of additional space and updated kitchens and demand for home offices is projected to grow.  If homebuilders can respond to these shifting preferences, sales of new homes may see a swifter rebound in the months ahead.


Best retirement plan is to investment into rental property?.  

( MIJU Economy: ST Park  5/21)

  • Retirement plan for RE investment becomes more popular.  As this trend becomes popular, the purpose of residential property is changing from primary residence to more  rental properties.
  • Rental properties among single houses is 18%.  For a year, 65% residence sales is for primary residence and 35% is for rental.  A contributing factor is fact that rent is increased with stead pace: middle class after financial crisis are forced to move to rental properties.
  • Flipping was a big trend up until 2011 for real estate investment, but it is changing to rent-seeker.  Currently most of rental property private investors hold 1 – 3 properties.
  • The important factor is safety, which means cash flow of investors.


Fannie Mae, Freddie Mac might be private companies soon

( The Korea Times   5/27)

  • Trump cabinet started the privatization of two major government mortgage organizations.  This project is seeking for $200B and it will be the biggest IPO in history if it is successful.  Two organizations were in trouble during the financial crisis in 2008, but US government invested huge funds to make them to survive.
  • If this project become successful, the hedge fund and the private investors might be profitable.
  • One variable factor might be COVID-19: millions of home owners are applying the forbearance and how many default cases might occur.  At the end of April, forbearance application was 7% and the government has expected up to 25% in the beginning.
  • Upon the privatization of them, the mortgage guidelines can be strict and the interest rates can be increased.




Stephen Lee

He has been in Real Estate industry in about 20 years and has been Broker of Record for 9 years. His experience includes residential, commercial, and property management. Prior to involving with Real Estate business, he has been involved in the digital communication equipment industry utilizing his engineering background and education, including running own company. He has established C Land Realty in 2011 which has grown to staffing over 100 Real Estate agents and the annual transaction amount of over $110,000,000 today.

Related posts

Weekly News (September 27, 2023)

Mortgage Interest Rates Review (United Mortgage Nation  9/27/2023) 30 yr fx (%) 15 yr...

Continue reading
by Stephen Lee

Weekly News (September 13, 2023)

Mortgage Interest Rates Review (United Mortgage Nation  9/13/2023) 30 yr fx...

Continue reading
by Stephen Lee

Weekly News (September 6, 2023)

Mortgage Interest Rates Review (United Mortgage Nation  9/6/2023) 30 yr fx (%) 15...

Continue reading
by Stephen Lee

Join The Discussion