Weekly News (September 14, 2022)
Mortgage Interest Rates Review
(by Fairway Home Loan 09/14/2022)
|30 yr fx (%)||15 yr fx (%)||FHA (%)||10 yr Tr Y (%)||5 yr Arm (%)||7 yr Arm (%)|
A year ago
A month ago
Suspected South Korean Suicides Spur Calls for Change: 한국, 조그만 아파트 한 가족3명의 자살로 변화의 촉구
- The deaths of three women in a tiny suburban apartment have prompted South Koreans to change its social-spending strategy and structure.
- The mother in her 60s, was suffering from cancer, while her daughters, in their 40s, had incurable illness, said an official in the city of Suwon.
- South Korea has grown in recent decades to be the world’s 10th-largest economy –an export powerhouse, technological leader and cultural trend maker → Hypercompetitive society, social inequity and winner—takes all mentality contribute to the deaths of poor families.
- South Korea’s suicide rate of 25.7 deaths per 100,000 people, highest in the OECD, and more than double the average of 11.
Average Mortgage rate Rises to 5.89%: 평균 모기지 이자률 5.89%로 상승
(Korea Daily 9/9/2022)
- Mortgage rates touched their highest level in nearly 14 years this week, another blow to the rapidly colliding housing market.
- Freddie Mac’s this week survey said the average rate on a 30-year fixed mortgage rose to 5.89%, topping an earlier high from June.
- Housing market is a key focus for the Fed because rising costs there are a major component of this year’s sky-high inflation.
- The buyer frenzy of last year has dissipated, bringing supply and demand back to closer balance.
Inflation Expectations Declined in August: 8월 인플레이션 기대지수 감소
(Korea Time 9/13/2022)
- American consumers said in August that they are expecting notable declines in future levels of inflation, a report from the Fed Bank of New York said Monday. (9/12)
- The bank said in its August Survey of Consumer Expectation that one year from now, households see inflation at 5.7%, down from the 6.2% they predicted in the July survey. Three year from now, survey respondents expect to see inflation at 2.8%, down from the 3.2% seen in July.
- Fed officials believe that the public’s expected path of inflation exerts a strong influence on where price-pressure levels stand now.
Median one-and three-year ahead expected inflation rate
Home listing price started lowering: 집값 부르는대로 안 팔린다 – 주택 리스팅 가격 감소
(Korea Times 9/13/2022)
- According to Redfin, U.S. average sold price became lower than average listing price for 4 weeks in August. Sold price was 99.8% of listing price while it was 101.4% a year ago, which means 1.6% lower.
- Mortgage rate increased → makes week demand of buyers → lowering listing prices → becomes inflection point in residential market.
- Still, 37% of transactions were going through biddings among buyers in August, but it came down from 50% a year ago.
- Still, the median price in July in U.S. is $403,800, up 10.8% from a year ago.
Inflation slows for 2nd month, but still high: 인플레이션 증가세 2달 연속 감소
(The Record 9/14/2022)
- Consumer prices surged 8.3% last month compared with a year earlier, down from an 8.5% jump in July, and a four-decade high of 9.1% in June. On a monthly basis, prices rose 0.1% , after a flat reading in July.
- Inflation is higher than many Americans have ever experienced, escalating families’ grocery bills, rents and utility costs, among other expenses à deepened gloom about the economy despite strong job growth and low unemployment.
- Republicans blame President Biden’s $1.9T stimulus package passed last year for much of the increase.
3% Down Mortgage Program Expanded: 3% 다운 모기지 프로그램 확장
(Korea Daily 9/14/2022)
- Citibank initiated “HomeRun” mortgage program with 3% down payment, no PMI for low-income and minority people in U.S. in major metropolitan areas. Low income guideline is 80% of the area’s average family income, but extended to 120%. (www.citi.com/mortgage/community-lending-homerun)
- Bank of America provides “Community Affordable Loan Solution” with zero down payment for first home buyers.
Goldman to Cut Hundreds of Jobs: 골드만 삭스, 백여명 감원 조치
- Goldman Sachs Group Inc. is preparing to lay off hundreds of staffers as soon as next week, after the bank’s annual performance review that has been suspended during the pandemic.
- The company had 47,000 employees on staff at the end of June, up from 41,000 a year earlier.
- After a record-setting in 2021, the industrywide slump on mergers and new IPOs has hit Goldman’s bottom line this year. 2nd Q investment-banking revenue fell 41% from a year ago, and Goldman’s profit fell by nearly half in that period.
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