Weekly News (May 31, 2023)

Mortgage Interest Rates Review

(Fairway Home Loan 5/31/2023)

Federal Fund Rate: 4.75% -5.25%        Prime Rate: 8.00%-8.25%

Hyundai, LG to build $4.3B battery plant near Savannah

(The Atlanta JC   5/26/2023)

• Hyundai Motor Group and LG Energy Solutions announced plans late Thursday to spend $4.3 billion to build an EV battery manufacturing plant in Bryan County near Savannah as part of the largest economic development project in state history.
• The project would be built adjacent to Hyundai’s massive electric vehicle “Metaplant” under construction in Ellabell, and state officials say it would be part of the company’s previously announced plan to spend $5.5 billion on the new complexand create 8,100 jobs.
• Hyundai is already developing another major battery plant in Georgia. The automaker and a subsidiary of SK Innovation said in December they would build a factory near Cartersville that could total $5 billion in future investment and create 3,500 jobs.

Hyundai, LG to build $4.3B battery plant near Savannah

Disney’s Canceled Orlando Campus Deals Blow to Neighboring Projects: 디즈니의 오피스 팍 계획 철회로 주위에 큰 피해

(WSJ   5/31/23)

• Walt Disney’sdecision to scrap a proposed $900 million office park in Orlando, Fla., creates a 60-acre hole inside an 11,000-acre master-planned community, clouding the near-term future of many other real- estate projects already underway there.
• The company cited changing business conditions and new leadership when it announced this month that it wasn’t proceeding with plans for the office space or the relocation of 2,000 employees from California.
• The pullout marks the latest flashpoint in a political and legal battle between Florida Gov. Ron DeSantis, who recently announced his candidacy for the White House, and Disney, which also is in the midst of cutting costs.

Home Sales Drop 23% on Year, Prices Slip: 주택 거래 1년 대비 23% 감소하면서 주택가도 하강

(WSJ  5/19/23)

• U.S. existing-home sales, which make up most of the housing market, fell 3.4% in April from the prior month to a seasonally adjusted annual rate of 4.28 million, NAR said Thursday. April sales fell 23.2% from a year earlier by the most in more than 11 years.
• The national median existing- home price fell 1.7% in April from a year earlier to $388,800, the biggest year-over year price decline since January 2012, NAR said. Home prices have fallen the most in the Western half of the U.S., while prices continue to rise from a year earlier in many Eastern markets.
• Falling home sales come as the economy shows signs of cooling. Economic growth eased in the first quarter and many economists expect a further slowdown this year.

U.S. median existing-home price, change from a year earlier

Home Prices Rose Again in March: 3월 집값, 2달째 다시 상승

(WSJ   5/31/23)

• Home prices rose in March for the second straight month as a shortage of homes for sale spurred competition among home buyers.
• The S& P CoreLogic Case-Shiller National Home Price Index climbed 0.4% in March compared with February on a seasonally adjusted basis. On a year-over-year basis, the index rose 0.7% in March, down from a 2.1% annual rate in the prior month. The annual increase was the smallest since May 2012.
• “Two months of increasing prices do not a definitive recovery make, but March’s results suggest that the decline in home prices that began in June 2022 may have come to an end,” said Craig Lazzara, managing director at S& P Dow Jones Indices.

The S&P CoreLogic Case-Shiller National Home Price Index

Possibility to raise The Fed’s rate in June: 연준, 6월 금리 인상 가능성 커져

(Korea Times   5/31/23)

• The inflation rate rose more than the Fed’s expectation and than the last month’s rate: 4.7% compared to a year ago while it was 4.6% last month.
• According to Dept of Commerce, PCE(personal Consumption Expenditures) index rose 0.4% from the last month, which was higher than Wall Street anticipated (0.3%).
• “FedWatch” said the possibility to raise he fed’s rate become 62.5%.

IMF increased U.S. growth forecast: 국제통화기금, 미국 경제 성장률 예상치 조금 상승

(Korea Daily  5/31/23)

• IMF adjusted forecast of U.S. economic growth to 1.7% this year, from 1.6%, and it will be 1.0% in 2024.
• Unemployment rate will keep at 3.8% this year, which is the lowest level, and it will raise to 4.4% along with the economic growth slow down.
• IMF mentioned U.S. sustained well under the monetary contraction policy and the banking system disruption.

Goldman Sachs Gird for Layoffs: 골드만 색스, 추가 감원 준비 

(WSJ   5/31/23)

• Goldman Sachsis preparing for more layoffs in the latest sign of continued fallout from a deal-making drought on Wall Street. One of the people said the layoffs would affect fewer than 250 jobs.
• The layoffs would mark a third round of job cuts at Goldman in less than a year. Goldman cut a few hundred employees in September, and then eliminated roughly 3,200 positions, or about 6% of employees, in January. The bank had about 45,000 employees in the first quarter.
• Morgan Stanleyis cutting roughly 3,000 employees this quarter, and Bank of Americasaid on its last earnings call that it planned to cut roughly 4,000 positions, or roughly 2% of its workforce, by the end of June.