Weekly News (November 11, 2020)

This week’s Interest Rate (46th Week)

(By Fairway Asset )

   30 yr fx(%)  15 yr fx(%) FHA(%) 10 yr Tr Y (%)
A year ago      3.750       3.25            1.917
A month ago      2.875       2.490     2.625          0.664
Last week      2.875       2.375     2.625          0.886
This week      2.750       2.375     2.625          0.886

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


 Prime Rate:3.0% / Ref IR: 0.00- 0.25%
Most recently, 10 Year Bond yield increased and the stock market improved due to election result and coronavirus vaccine trial result.



New Jersey Restaurant opening will be limited due to COVID-19 spreading.

(Korea Daily/Times  11/10)

  • All restaurants must close inside from 10pm through 5am from 12th of November.  Seating in the bar is prohibited also.  Outdoor dining and pick up will be allowed as usual.
  • All indoor sports competition and tournament in the school will be prohibited also.
  • Daily positives are 2,705 on 9th in NJ and transmission rate is 7.72% as of 11/5.
  • In NY, daily positives are 3,144 and transmission rate is 2.82%.


New Jersey sues Honeywell over pollution of Hudson River

  (Record 11/11 )

  • Phil Murphy’s administration sued one of nation’s largest companies on Tuesday, seeking financial damages for pollution that has seeped from an Edgewater Superfund (Quanta) site into Hudson River and the surrounding area for decades.
  • Sandwiched between high-end residential and commercial developments, the Quanta site has a long history of industrial use dating back at least 150 years when factories used to process coal tar for roofing.  By the 1970s, the property was used to recycle waste oil from river barges.
  • Although oil tanks were removed from the site in the 1980s, the Quanta languished for years until it was named a federal Superfund site in 2002 and came under control of the EPA.
  • Honeywell’s three-years cleaning effort has some mishaps.


Mortgage interest rates dropped historically again

(Korea Daily/Times 11/6)

  • According to Freddie Mac, mortgage interest rates dropped to 2.78% from last week’s 2.81%, which is the lowest since 1971 when the Freddie Mac started recoding the average rates.
  • Mortgage interest rates is related to 10 year treasury bond yield: when the global economy shows bleak outlook, investment moves to US treasury bond which will drop the treasury bond’s yield.
  • Lowest rates triggered home owner’s Re-Fi as well, of which application increased 80% compared to last year.


Corporate Landlords rake in rent from house demand in suburbia

(WSJ  11/11)

  • Big companies that own single-family homes are raising rents at the fastest rate since they emerged from last decade’s foreclosure crisis, capitalizing on a rush for suburban housing.
  • Though millions of Americans are still struggling to pay rent and at risk of eviction, the bet on six-figure-earning suburbanites by companies such as Invitation Homes, and American Homes 4 Rent has so far been pandemic proof.
  • September single family rents climbed an average of 3.8% from a year ago earlier across 63 markets regardless of owner, according to John Burns Real Estate Consulting.
    No market declined.



US Unemployment rate dropped to 6.8%

(Korea Daily 11/9 )

  • US Labor Department reported the unemployment rate has dropped to 6.8% from last month’s 7.9%.  It was 3.5% in February which was lowest since 1969.  At the peak of COVID-19, it hit more than 10%.
  • In August, non-agriculture jobs have increased 638,000, which shows 6 month continual growth.  It was bit smaller than last month’s 672,000, but it exceeded expert’s forecasts which was 580,000.


US Coronavirus positives are over 10M

(Korea Times   11/9)

  • According to the NYT report, US positives reach to 10,018,278 on 9th.  Increasing rate is very fast: for the last 7 days, average daily positives exceeded 100,000 which is fastest in the world.
  • The President-elect Biden announced launching COVID-19 task force team with 12 members and said US is facing gloomy winter season and everyone should use a mask.


Pfizer says its COVID-19 vaccine is more than 90% effective

(CBS  11/10)

  • Pfizer announced its new coronavirus vaccine has proven to be more than 90% effective, and it could be used before the end of the year.
  • They said that the vaccine, made with German partner BioNTech, had an efficacy rate higher than 90% at seven days after the second dose, which means protection is achieved 28 days after a person begins vaccination. The vaccine requires two doses.
  • In a news release, the pharmaceutical giant said it plans to seek emergency use authorization from FDA soon after volunteers have been monitored for two months after getting their second dose of vaccine, as requested by the FDA.
  • DOW stock soars 1,600 points after Pfizer announces great news about the vaccine and Joe Biden declared victory.
  • Modena is planning to announce the result of 3rd phase clinical test by the end of this month.


What would be changes in Bidenomics?  

(Record 11/11, Korea Times  11/10)

  • Focus → Higher tax on Riches / Spend for big investment and support low income earner.
  • If President- elect Biden could work with a Democratic-controlled Senate, the economy would grow an average of 3.8% a year, creating 14.1M new jobs, according to Moody’s analysis.
    1) Additional Economy Stimulus package of $2.2T : $600 support/ Aid for small businesses
    2) Long term Indirect Social Investment: Infra construction, Clean Air policy, R & D investment, Expansion of tuition-free community college, Affordable child-care, Home buyer’s aid / Biden proposes to spend $7.3T over 10 years.
    3) Tax reform: Higher tax reform to high income class above $400K and corporations.
    4) Expansion for the coverage of Obama Care: 91% → 97%, Possibly Medicare benefit from the age of 60.
    5) Stronger Environment policy: Eco-friendly infra investment/ Zero CO2 emission till 2050 by investing $2T.
    6) Housing and Education support: Landlord and Tenant protection/ $15,000 Tax Support to first home buyers, and different support for teachers and medical professionals’ home buying.
    7) Trade policy : Keeping tariff in $360B against China for a while/ About in 2023, the tariff against China will be removed to reduce consumer burden for imported products.
    8) Minimum wage: Biden supports the federal minimum wage increase from $7.25 an hour to $15.
    9) Immigration Policy: Biden supports sweeping immigration reform, which likely would boost the number of immigrants entering and staying in, the country.


  Others/Tech News : SamSung Cell Phone Takes  #1 market share

     (Korea Daily 11/11)

– Market share( Galaxy Note 20 effect) → 33.7% / Apple → 30.2%
– LG Electronic → 14.7%
– SamSung won over Apple again after 13 quarters since 2Qt, 2017.


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