Weekly News (March 13, 2024)

Mortgage Interest Rates Review

United Mortgage Nation  3/13/2024

Federal Fund Rate: 5.25 -5.50%        Prime Rate: 8.25 – 8.50%  

New Jersey, short term rent soaring

뉴저지 단기 임대 수요 급증  

Korea Daily   3/12/24 

• While New York is banning short term rent such as Airbnb, the demand for short term rent is soaring in New Jersey towns such as Hoboken, jersey City, and Weehawken, etc., according the Record through Air DNA – local short term rent data company.
• As of Feb 2024, short term rent demand in Jersey City is up 84% from a  year ago,  Weehawken by 59%, Union City by 40%, Hoboken by 35%, etc. These cities are very easily approachable from Manhattan area.
• Currently Airbnb listing has 5000 rentals while there are more than 34,000 where renters can stay more than 30 days.  In NYC, rental properties for less than 30 days has to be registered with city and owner has to be co-occupied.  

Miami’s Office Boom Starts to Slow Down

마이애미에 사무실건물 호황도 식기 시작 

WSJ   3/13/24 

• The challenges swirling around a skyscraper known as One Brickell City Centre, which at around 1,000-feet high would be Miami’s tallest corporate tower, show how the city’s once-sizzling office market is starting to cool.
• New York developer Related Cos. and Swire Proper-ties , an international development firm founded by the British Swire family, are struggling to find an anchor tenant roughly a year after the groundbreaking.
• Miami office-construction starts have slowed down after a recent peak in the second quarter of 2023, according to CoStar. He said that new construction was being affected by higher interest rates, elevated costs for construction material and labor, and a slowdown in leasing activity. 

Construction site for One Brickell Centre

WSJ  3/13/24

Biden prepares new law for first home buyers and sellers

첫주택 사거나 팔때 세금 혜택주는 법안 준비

Korea Times  3/12/24 

• The president Biden are preparing the bill provides tax deduction of $5000 for 2 years for the first home buyers in their life, which is equivalent to lowering 1.5% interest rates for 2 years.   
• Also those who puts the first home to sell on the market will get tax deduction of $10,000 max.
• Other real estate stimulus package includes tax benefits to low-income multifamily remodeling developers, $20B support to new apartment developers. The package will set the goal of providing 1.2M housing units.

Inflation Edges Up, Hits 3.2%

인플레이션 3.2% 로 살짝…     

WSJ   3/13/24

• U.S. inflation was slightly stronger than anticipated last month but did little to change expectations that the Federal Reserve will begin cutting rates later this year.
• Consumer prices rose 3.2% in February from a year earlier, the Labor Department said Tuesday, up slightly from economists’ expectations of 3.1%.
• Inflation has cooled notably over the past year. In February 2023, inflation as measured by the CPI was 6%. But many Americans are taking little comfort from milder 12-month inflation rates because the runup in the price of everything from cars to restaurant meals to housing since 2021 has been abnormally large.     

Consumer-price index, change from a year earlier

WSJ  3/13/24

Interest rates, 3 times drop in 2024, 4 times in 2025

연준 올해 세차례, 내년 네 차례 긍리 인하 전망    

Korea Daily   3/13/24

•  E Pang, Goldman Sachs economist forecasted that the Fed will drop the interest rates 3 times this year (June, July, Sep)  and 4 times next year at the recent KOCHAM seminar, and therefore the interest rates can be stable at 3.25% – 3.50% toward the end of 2025. 
• She forecasted also U.S. economy growth will be 2.4% this year and Korea economy growth will be 2% at the 4th Qt 2024 and 2.7% at the end of 2025.  Investment on equipment will substitute the diminishing effect of IRA. Residential Investment growth will be 3.7% at the 4th Qt 2024 because high home mortgage rates will be compensated by low inventory. Labor market went back to pre-pandemic era and unemployment rate will stay at 3.6% due to slow down of new job opening.

Powell tells Lawmakers Rate Cuts are on Track in 2024

연준 의장, 2024 금리 인하는 드대로 갈 예정

WSJ   3/7/24

• Brisk inflation and hiring data in January haven’t altered the Federal Reserve’s expectation that it will be appropriate to cut interest rates later this year.  The recent strength of the economy and labor market “means that we can approach rate cuts carefully and thoughtfully,” he said. 
• His comments did little to change expectations in interest-rate futures markets that the central bank will lower interest rates in June.
• “We are on a good path so far to be able to get there,” he said. Powell also said he saw “no reason to think” that the U.S. economy faces an immediate risk of falling into a recession.

Nvdivia Embraces Role As a Formidable Force In Startup Investing

신생기업에 엄청나게 투자하는엔비디아

WSJ    3/11/24 

• Nvidia has become an investor darling because of an artificial-intelligence boom built on its chips. More quietly, the company also has made itself into one of the business world’s hottest venture- capital investors.
• Nvidia invested in about three dozen startups last year, according to Dealogic figures, more than tripling its activity from the previous year.
• One of the more notable investments of the past year was in CoreWeave, a company that operates large data centers filled with Nvidia’s AI chips and rents their computing power out, putting it in competition with huge cloud-computing companies such as Amazon.com and Microsoft.

Nvdivia’s Venture Investment  

WSJ  3/11/24

 “Angelina” Bakery Franchise expanding in NYC

엔젤리나 프랜차이즈 사업 본격 확대

Korea Daily   3/9/24 

• Tony Park, owner of Angelina Bakery is Korean descent, but born in Palermo, Italy where he found his love for baking.
• Angelina Bakery is rapidly growing and since the first store opening in Hell’s Kitchen in 2019, they have opened a flagship location in Times Square, a 4000 sf. 
• Currently they are operating 3 stores in Manhattan and they will expand to 4 more stores in the city.  
• Angelina becomes very famous while NT Times, Forbes, Time Out, Eater, Gotham, NY Business Journal have reported their story : NT Times’s title quote “So nice, you’ll eat it twice”.  

Tony Park, Owner of Angelina