Weekly News (November 30, 2022)

Weekley News

by Stephen Lee (President/ Broker at C Land Realty)

Mortgage Interest Rates Review

(Fairway Home Loan 11/30/2022)

 Federal Fund Rate: 3.75 -4.00%        Prime Rate: 6.75-7.00%

NYC Background(Criminal) check will not be allowed: 뉴욕시 세입자 범죄기록 조사 불허가

(WSJ  11/28/22)

• According to NYC council meeting, more than a half council members are favor to ban to tenant background check for criminal with Int.632 Fair Chance for Housing Act which is under processing to enact.
• The Mayor is favor to this act, and the act will be affective 200 days after the mayor signs the bill.  The process will be initiated Dec 8 as the first hearing begins.
• When this bill is passed, owners and real estate agents will not allow to check the criminal background except apartment run by NYCHA and 1-2 family house with landlord occupied.

Land-Tax Policy Seen as Hurdle to Housing: 나대지 세금 정책이 주택건설에 방해요소

(WSJ  11/23/22)

• Higher levies on towers than on vacant lots draw criticism amid apartment shortage : owners of vacant lots has paid relatively little taxes on the property because it doesn’t contain any building.
• NYC alone has more than 77,000 lots that are either vacant or have a building that is less than half size of what zoning allows, according to Altus Group for WSJ – these lots could add an estimated 858M sf of housing and commercial space, according to Altus, which is equivalent to 306 Empire State Buildings.
• Reversed tax policy – the tax off of the buildings and onto land will encourage buildings and discourage land speculation.

A Glimpse at how skewed property-tax systems in NYC

New-Home Sales Rose by 7.5% in October: 신축 주택 판매, 10월에 7.5%증가    

(WSJ  11/25/22)

• Sales of newly built homes rose in October from the prior month, led by sales of higher priced homes, offering little relief for a housing market that has been clobbered by the rapid doubling of mortgage rates.
• New-home sales rose 7.5% in October from September to a seasonably adjusted annual rate of 632,000, the Commerce Dept said Wednesday (11/23).
• New home sales beat expectations, but a reversal of the general downward trend is doubtful for now given high mortgage rates and builder ssimism, said Robert Frick at Navy Federal Credit Union.

Mortgage Rates peaked and started falling: 모기지 이자률 장점 찍고, 하강세

(Korea Daily  11/29/2022)

• According to Freddie Mac, the average mortgage rates for 30 year fixed fell down to 6.58% on 11/27/2022, which is down 0.5% for four weeks. Sam Carter, chief economist of Freddie Mac said “the mortgage rates will be decreased for a while.”
• MBA said that mortgage demand rose 2.2% last week as the mortgage rates are falling down. The 30-year fixed rates were 3.1% a year ago.
• The mortgage application rose 3% last week, but still it was 41% low compared to a year earlier. If the mortgage rates fell to 5.5% range, home buyers become active again, said people involved in the mortgage industry.

Home Prices Decline for Third Straight Month: 주택가 3개월 연속 하락   

(WSJ  11/30/2022)

• S&P CoreLogic Index fell 1% in September from August. Over the three months, the index is down 2.6%.
• Home prices in many major cities had been booming for years before the pandemic fueled home buying spree pushed even prices higher. That surge reversed abruptly this year due to a rapid rise in mortgage rates.
• Home prices in San Francisco tumbled down 2.9% in September from August. Recent monthly home price declines there have been steeper than in 2001 when the dot-com bust spilled over the housing market. Seattle home prices also fell down 2.9% on a monthly basis.

S&P CoreLogic Index, change from a year earlier

Airbnb Launches Rental Listings: 에어 비엔비, 아파트 임대 리스팅 시작

(WSJ  11/30/22)

• Airbnb Inc. is launching a listing service for rental apartments with some of the biggest landlords and property managers in the country, a bid to expand its business in multifamily buildings where owners often shun short-term rentals.
• The new service will feature more than 175 buildings managed by Equity Residential, Greystar Real Estate Partners LLC and 10 other companies,  Airbnb said Wed.
• The site will act as a listing platform for rental apartment, similar to Zillow or Apartment.com but will only include units where short term sublets are allowed.

BlockFi Files for Chapter 11, following FTX: FTX에 이어, 블럭 화이도 파산 신청  

(WSJ  11/29/22)

• On 11/11, Sam Bankman-Fried, founder and CEO of FTX Cryptocurrency Derivatives Exchange filed for Chapter 11 protection. Approximately 130 additional affiliated companies are part of the proceedings. FTX indicates it has more than 100,000 creditors, assets in the range of $10B to $50B, as well as liabilities in the range of $10B to $50B. (Lehman had about $600B in assets and Enron had $60B)
• Following FTX bankruptcy, BlockFi, Cryptocurrency lender, filed for Chapter 11 on Mon(11/28) spotlighting the contagion effects that the failure of the crypto exchange has unleashed.
• BlockFi’s top 10 creditors alone are owned closed to $1.2B.

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