Weekly News (November 9, 2022)

Mortgage Interest Rates Review

(by Fairway Home Loan 11/9/2022)

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

Paul Kim(Democrat) won the election for Mayor of Palisades Park, NJ: 폴 김, 팔리세이드 팍 시장 선거의 승리

(Republican  Camp   11/9/2022)

• Generally it was low voting rate – among about 6000 registered Korean voters, only about 1000 voted, according to Republican election camp.
• Paul Kim won and Stephanie Jang defeated, and the difference was 173 (28 from voting machine, 145 from pre-voting and mail voting).

180-unit apartment sold at $89M in North Haledon: 노스 헬던에  180개 유닛 아파트 단지, $89에 판매

(Record    11/4/2022)

• Tulfra, based in Rochelle Park and 30 year partner Hampshire Companies announced the sale of Molly Brook on Belmont, an upscale apartment community in North Haledon at $89M ($495,000 per unit). The project took 10 years of planning, entitling, building and leasing, and reached 100% occupancy less than 12 months.
• The buyer is JLL Income Property Trust who has $7B assets under management. The brokers were 4 agents of Cushman and Wakefield, who represented the seller and procured the buyer.
• Molly Brook is professionally leased and managed by Bozzuto Management, who will continue under new ownership.

Molly Brook complex in North Haledon

Fed Lifts Rates, Signals ‘Ways to Go’: 준비위원회 기준 금리 0.75% 인상  

(WSJ  11/3/22)

• The Fed lifted interest rates by another 0.75% to 3.75%-4.00% to combat inflation and signaled plans to keep raising them, possibly in smaller increments but to higher levels than previously anticipated.
• After the decision, Chairman Jerome Powell said officials would contemplate a smaller hike at their next meeting in December. But he cautioned that they might raise borrowing costs next year more than they have projected.
• Mr. Powell also warned that reducing the size of rate increases didn’t mean the Fed thought it was close to pivoting away from raising rates.

Federal-funds rate target

Robust Hiring shows Signs of Cooling Off: 탄탄한 고용시장, 식기시작하는 조짐

(WSJ  11/5/2022)

• The U.S. labor market remains strong but it is showing more signs of cooling following the Fed’s aggressive interest-rate increases aimed at combating high inflation.
• Employers added 261,000 jobs in October, a robust number but the fewest since December 2020, and the unemployment rate rose to 3.7%, according to the Labor Department.
• The report points to an economy that is gradually losing momentum following a torrid stretch of growth last year and earlier this year.

Job Changes

Unemployment rate

Home Buyers Set Sights Farther Away: 주택 구입자, 도심에서 더 멀어져

(WSJ  11/4/2022)

• The rise of remote work and the ballooning cost of housing in major metro areas are leading Americans to move much farther away when buying a home.
• Median distance people move rises to 50 miles from 15 miles in era of high prices and remote work.
• Smaller communities were especially popular with buyers: 48% of home purchases were in small towns and rural areas, a record in data going back to 2003 and up from 32% a year earlier, NAR survey showed.

Median distance between new home and previous home

SBA 7(a) Loan exempts the fee: SBA 7(a) 융자 수수료를 한시적으로 면제

(Korea Daily    11/09/2022)

• SBA announced they will exempt the fee for 7(a) loan program under $500,000 for one year.
• It will apply to the fiscal year beginning Oct 1, 2022 through Sep 31, 2023 and the typical fee for under $500,000 is 3%.
• During the previous fiscal year, the exemption limit was up to $350,000.

Tesla Has a Twitter problem: 테슬라, 트위터 인수로 중국과 문제가 될수도

(WSJ  11/8/2022)

• The electric-vehicle pioneer is hugely reliant on China. The Shanghai plant is its largest manufacturing and export hub, with room to make more than 750,000 Model 3s or Model Ys – roughly two-fifths of its global capacity.
• A big question for Tesla investors is how adroitly he can maintain them while pursuing his goal of improving “free speech” at Twitter – a social media platform blocked for most users in China precisely because that is what it offers. The operation could be held hostage to social-media politics.
• Musk sold $4B Tesla shares after Twitter purchase.

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