Tag Archives: property

Hong Kong Stocks Sink as Property Fear Spreads Beyond Evergrande

(Bloomberg) — Growing investor angst about China’s real estate crackdown rippled through markets on Monday, pummeling Hong Kong developers and adding pressure on Beijing authorities to stop financial contagion from destabilizing the economy.

Hong Kong real estate giants including Henderson Land Development Co. suffered the biggest selloff in more than a year on speculation China will extend its property clampdown to the financial hub. Fears of contagion from China Evergrande Group continued to intensify, dragging down everything from bank stocks to Ping An Insurance Group Co. and high-yield dollar bonds.

The Hang Seng Index dropped 3.9% at the midday break, its biggest loss since late July. The selling spilled over into the Hong Kong dollar, offshore yuan and S&P 500 Index futures. Holiday closures in much of Asia may have exacerbated the volatility, traders said.

Faced with uncertainty over how much economic fallout President Xi Jinping is willing to accept as he pushes forward with market-roiling campaigns to achieve “Common Prosperity” and rein in overindebted companies, many investors are choosing to sell first and ask questions later. Interest payment deadlines this week on several Evergrande bonds and bank loans add another layer of risk as market participants brace for what could be one of China’s largest-ever debt restructurings.

“The price action across several asset classes in Asia today is horrendous due to rising fears over Evergrande and a few other issues, but it could be an overreaction due to all of the market closures in the region,” said Brian Quartarolo, portfolio manager at Pilgrim Partners Asia.

The Hang Seng Property Index tumbled 6.6%, the most since May 2020. Henderson Land dropped 12%. Sun Hung Kai Properties Ltd. slumped 9.1%, poised for its biggest loss since 2016. CK Asset Holdings Ltd. sank 7.9%.

Chinese officials told Hong Kong developers that Beijing is no longer willing to tolerate what it calls monopoly behavior, Reuters reported Friday. The officials didn’t lay out a roadmap or a deadline, the report said, citing unidentified developers.

“This is a paradigm shift,” said Hao Hong, chief strategist at Bocom International, referring to the Reuters report. “People need to keep a close look.”

Hong Kong’s government has long struggled to bring home prices under control amid outsized demand, limited supply and low borrowing costs. Hong Kong’s average property value was a world-beating $1.25 million as of June 2020, according to CBRE Group Inc.

Risk-off sentiment in financial markets was widespread on Monday. Junk-rated Chinese dollar bonds slid by as much as 2 cents. The Hong Kong dollar fell to the lowest level this month. The offshore yuan declined for a third day. FTSE China A50 Index futures slid 3.9%. Mainland financial markets are closed for public holidays until Wednesday, when Hong Kong will be shut. S&P 500 Index futures dropped 0.9%.

“We are seeing fears of contagion from China Evergrande playing out,” said Jun Rong Yeap, market strategist at IG Asia Pte.

Evergrande is scheduled to pay interest on bank loans Monday, with a one-day grace period. While details on the amount due aren’t publicly available, Chinese authorities have already told major lenders not to expect repayment, people familiar with matter said last week. Evergrande and banks are discussing the possibility of extensions and rolling over some loans, the people said.

The developer’s stock sank as much as 19% Monday, on track to close at its lowest-ever market value.

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Evergrande begins repaying wealth product investors with property

An exterior view of China Evergrande Centre in Hong Kong, China March 26, 2018. REUTERS/Bobby Yip/File Photo/File Photo

BEIJING, Sept 19 (Reuters) – Cash-strapped developer China Evergrande Group (3333.HK) has begun repaying investors in its wealth management products with real estate, a unit of its main Hengda Real Estate Group Co Ltd unit said.

Evergrande, with over $300 billion in liabilities, is in the throes of a liquidity crisis that has left it racing to raise funds to pay its many lenders and suppliers. It has a bond interest payment of $83.5 million due on Thursday.

The company said in a WeChat post dated Saturday that investors interested in redeeming wealth management products for physical assets should contact their investment consultants or visit local offices.

Financial news outlet Caixin reported on Sunday that an estimated 40 billion yuan ($6 billion) in Evergrande wealth management products are outstanding. Such products are typically held by retail investors.

Specific payment methods and details are subject to local conditions, a customer service representative told Reuters on Sunday.

According to a proposal seen earlier by Reuters that Evergrande did not confirm, wealth management product investors can choose from discounted apartments, office, retail space or car parks for repayment.

Earlier this month, a stock exchange filing showed that Evergrande had repaid 219.5 million yuan in overdue debts due to supplier Skshu Paint Co Ltd (603737.SS) in the form of apartments in three unfinished property projects.

On Sept. 10, Evergrande had vowed to repay all of its matured wealth management products as soon as possible.

($1 = 6.4655 Chinese yuan renminbi)

Reporting by Aishwarya Nair in Bengaluru and Min Zhang and Tony Munroe in Beijing; Editing by William Mallard

Our Standards: The Thomson Reuters Trust Principles.

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Police found a toddler who had been missing for 3 days playing in a stream on his parents’ own property, 550 yards from his house

Anthony Elfalak, right, and his wife, Kelly, embrace after hearing their son AJ is found alive on the family property near Putty, north west of Sydney, Australia, Monday, Sept. 6, 2021. Dean Lewins/AAP Image via AP

  • An Australian toddler was found safe after he spent three days missing in the Australian bush.

  • AJ Elfalak’s parents reported their son missing from their rural New South Wales property on Friday.

  • More than 130 people helped search for AJ over the weekend, before he was eventually rescued.

  • Visit Insider’s homepage for more stories.

Authorities rescued a 3-year-old New South Wales boy on Monday after he spent three nights lost in the Australian bush after disappearing from his parents’ home Friday.

The young boy, identified as Anthony “AJ” Elfalak, survived three near-freezing nights in the woods on his parents’ rural property, before he was safely located less than 550 yards from his home on Monday. Police told the Associated Press his parents reported him missing on Friday around 12:30 p.m.

Video posted to Twitter by New South Wales police appears to show the boy drinking from a stream of water when air rescue crews spotted him.

Law enforcement organized an extensive search party with the help of local authorities and emergency service volunteers, according to CNN. More than 130 people spent the weekend searching for AJ. 

After a days-long search, aviation support service PolAir spotted AJ splashing in the stream near his home and led ground teams to rescue him, the outlet reported.

Video: Here’s how many children you can have in a lifetime

According to the AP, AJ was kneeling in the water when a State Emergency Service officer approached him and touched his shoulder.

The officer reportedly said that upon being touched, AJ “turned towards him with a massive smile on his face…”

Ambulance officers said AJ was in good condition and was observed at the hospital following his rescue. The boy has since been reunited with his family.

AJ’s father, Anthony Elfalak, told Australian media that his son had sustained ant bites and abrasions and was suffering from diaper rash.

“It’s a miracle. He’s alive. It’s amazing,” AJ’s father, Anthony Elfalak, told Seven News. 

The Australian bush is known to be a sparsely-inhabited, unforgiving terrain. During a press conference, New South Wales Police Superintendent Tracy Chapman said she thought AJ being close to a water source probably helped him survive his three days in the harsh environment.

“I can’t explain it. I’m so blessed,” AJ’s mother, Kelly Elfalak, told reporters after being reunited with her son. “I’m so happy that he is here. He’s with us, he’s safe and well and healthy. That’s all that matters.”

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Texas city to offer Samsung large property tax breaks to build $17 bln chip plant

The logo of Samsung is seen on a building during the Mobile World Congress in Barcelona, Spain February 25, 2018. REUTERS/Yves Herman

Sept 6 (Reuters) – The city of Taylor, Texas – one of two locations in the state under consideration by Samsung Electronics (005930.KS) for a $17 billion chip plant – plans to offer extensive property tax breaks if it is chosen by the South Korean tech giant.

Taylor is competing with Austin, Texas to land the plant which is expected to create about 1,800 new jobs. Samsung has also said it is looking at other potential sites in Arizona and New York.

Other potential sites have yet to disclose planned tax breaks.

A proposed resolution posted on the city’s website shows that for the land Samsung will use, it is set to be offered a grant equivalent to 92.5% of assessed property tax for 10 years, 90% for the following 10 years and then 85% in the 10 years after that.

Other measures include a 92.5% tax waiver on new property built on the site for 10 years and the repayment of development review costs.

The proposed resolution will be considered on Wednesday by the Taylor City Council and Williamson County Commissioners.

The Taylor site is located about 25 miles (40 kilometres) from Austin. It is about 1,187.5 acres (4.81 square kilometres)in size, much bigger than the Austin site. Samsung last year purchased more than 250 acres in Austin, which is in addition to 350 acres it owns that includes its sole U.S. chip factory.

If Samsung decides on Taylor, it plans to break ground by the first quarter of next year with production due to start by end-2024, a document previously filed with Texas state officials has said. [nL4N2OS0M5

Reporting by Joyce Lee; Editing by Edwina Gibbs

Our Standards: The Thomson Reuters Trust Principles.

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Independence police identify human remains found on Grain Valley property

Independence police have identified human remains found Wednesday during a search of a property in Grain Valley.Authorities said the victim was positively identified as Kensie Renee Aubry, 32. Aubry was reported missing from Independence in October 2020.Her remains were found in the 4000 block of Buckner Tarsney Road in unincorporated Grain Valley.Court documents show the property belongs to Michael Hendricks, 40. Hendricks was charged in June with enticement or attempted enticement of a child less than 15 years old, child molestation of a child less than 14 years old and sexual misconduct.Court records also revealed that a woman claiming to be Hendrick’s girlfriend, named Maggie Ybarra, allegedly told an underage girl that Hendricks had killed a woman and disposed of the body.Ybarra was also charged with multiple sex crimes in June.Both are currently booked in the Jackson County Detention Center. They have court hearings next Tuesday.On Thursday, a Grandview neighbor told KMBC Ybarra lived in a home across the street from her for about a month. She said Ybarra seemed friendly, but did hear screaming from the home one day.It is unclear what happened at the home.But police said that after Ybarra moved out, they found a picture in the home of a woman that helped in their investigation.Both are currently booked in the Jackson County Detention Center.Independence police are being aided by the Federal Bureau of Investigation and the Jackson County Sheriff’s Office as they investigate.

Independence police have identified human remains found Wednesday during a search of a property in Grain Valley.

Authorities said the victim was positively identified as Kensie Renee Aubry, 32. Aubry was reported missing from Independence in October 2020.

Her remains were found in the 4000 block of Buckner Tarsney Road in unincorporated Grain Valley.

Court documents show the property belongs to Michael Hendricks, 40.

Hendricks was charged in June with enticement or attempted enticement of a child less than 15 years old, child molestation of a child less than 14 years old and sexual misconduct.

Court records also revealed that a woman claiming to be Hendrick’s girlfriend, named Maggie Ybarra, allegedly told an underage girl that Hendricks had killed a woman and disposed of the body.

Ybarra was also charged with multiple sex crimes in June.

Both are currently booked in the Jackson County Detention Center. They have court hearings next Tuesday.

On Thursday, a Grandview neighbor told KMBC Ybarra lived in a home across the street from her for about a month. She said Ybarra seemed friendly, but did hear screaming from the home one day.

It is unclear what happened at the home.

But police said that after Ybarra moved out, they found a picture in the home of a woman that helped in their investigation.

Both are currently booked in the Jackson County Detention Center.

Independence police are being aided by the Federal Bureau of Investigation and the Jackson County Sheriff’s Office as they investigate.

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SpaceX rocket debris lands on Washington state homeowner’s property

Debris from a SpaceX rocket that reentered the atmosphere last week was found on a homeowner’s property in Central Washington state, the Grant County Sheriff’s Office said Friday.

The 5-foot-long composite-overwrapped pressure vessel came from the Falcon 9 rocket’s “2nd stage that did not successfully have a deorbit burn,” the National Weather Service said, according to Q13 FOX in Seattle. 

The sheriff’s office said the homeowner had no comment and wanted to be left alone.

SPACEX STARSHIP DEBRIS RAINS DOWN DURING BOTCHED TEST FLIGHT LANDING IN FOGGY CONDITIONS 

MYSTERIOUS SEATTLE LIGHT SHOW LIKELY DEBRIS FROM SPACEX ROCKET 

The debris left a four-inch dent in the ground but no other damage has been reported, according to KOMO-TV in Seattle.

SpaceX has since retrieved the pressure vessel, which KOMO reported would have contained pressurized helium.

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The Falcon 9’s first stage landed in Florida as planned, SpaceX said Wednesday, according to Q13. The rocket sent Starlink satellites for internet access into orbit.

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How vaccinated travelers became hot property

(CNN) — The “Plague Island” headlines splashed across the front pages said it all.

With its out of control infection rates and deaths heading past the 125,000 mark, the UK started 2021 as Europe’s Covid pariah.

Now though, after a vaccination program that has seen more than a third of all adults receive at least one dose, countries across Europe, and tour operators who have struggled over the past 12 months, are falling over themselves to welcome weary Brits for a dose of summer sun.

Harry Theoharis, Tourism Minister for Greece, told the virtual ITB Tourism conference this week that the country would welcome anyone who’d been vaccinated, could prove they had antibodies or present a negative PCR test.

Declaring, “All you want is Greece,” his impassioned plea has kicked off a race for tourists’ unspent lockdown cash, which authorities across the Mediterranean hope will boost ailing communities that have lost millions over the past year.

Spain, which pulled in over 18 million British travelers in 2019, and Portugal have also said they’re keen to get Brits flying in as soon as it’s safe to do so.

There’s clearly a market too. ABTA, a UK travel trade association, says that 63% of Brits are hoping to book a foreign vacation in 2021.

There’s just one niggling issue. It remains illegal to leave the UK for a vacation. This week the country’s transport minister, Grant Shapps, warned that it’s still too soon to book a foreign trip.

Prime Minister Boris Johnson has penciled in May 17 as the soonest possible date that international travel will be allowed.

That remains subject to a review from the government’s global travel taskforce, due on April 12, when details on what countries are deemed safe for travel and what vaccine certification, if any, might be required.

Building traveler trust

Vaccinated British tourists will be permitted to visit Cyprus from May.

CHRISTINA ASSI/AFP via Getty Images

That doesn’t appear to be deterring European countries and tour operators from going all out to attract visitors or tourists from booking.

Thomas Cook said it saw a 25% rise in enquiries about the Mediterranean island of Cyprus in the wake of its announcement about plans for vaccinated travelers.

From fully flexible booking offers, to tourism officials touting falling Covid numbers, there’s an undeniable effort to entice vacationers to book as soon as possible.

For Luis Araujo, president of tousim body VisitPortugal, it’s definitely not too soon to lock in a vacation.

“They should book immediately,” he says when asked whether potential tourists should wait before booking their summer break.

“We need to build trust with tour operators and travel agents. If we don’t have this proactive reaction in terms of booking or asking for travel, then everything will take longer to recover… What we need now is mobility.

“And we need it now because each day that passes is a day we lose.”

Araujo points to Portugal’s “Clean and Safe” stamp, which has seen over 21,500 establishments including hotels, bars, restaurants and museums comply with stringent health guidelines.

More than 25,000 people were given training in 2020, with a further 12,000 already being trained this year, he says.

With a fast-falling infection rate, down to 83.2 per 100,000, Araujo is keen to point out that Portugal is coming through the worst and will soon be ready to welcome back tourists.

It’s not just about vaccinated visitors, though. Araujo wants anyone who can prove they’re Covid-free, either by providing a negative test or proof they’ve got antibodies or had a vaccine, to be able to visit Portugal.

“The shift has to be from considering ‘dangerous’ countries to looking at people and the risk of people,” he says.

“It’s controlling the pandemic at the same time as allowing people to enter the country. It’s not just a country for those who are vaccinated.

“It’s important to consider that people, even from high risk countries, can enter if they have proof they’re not contaminated.”

Clearer Covid secure credentials

DANIEL LEAL-OLIVAS/AFP via Getty Images

Araujo is keen to emphasize that Portugal is not in competition with other countries around Europe for vaccinated tourists.

Rather, that there needs to be cooperation across the European Union to provide standardized safety rules for starting travel up again safely.

“I think the competition is to build trust and get planes in the air,” he says. “It’s not a matter of discussing if we have five more tourists than Greece or 10 less than Spain.”

Operators, too, are making their Covid secure credentials clearer as international travel gets closer.

“We have a team dedicated to making sure that our accommodation, bike and taxi providers are compliant with all applicable Covid rules and have appropriate safety measures in place, such as enhanced room cleaning between stays and physical distancing,” says Simon Wrench from Inntravel, an operator that offers walking and cycling holidays in Cyprus, Spain and Slovenia.

Greece, meanwhile, is said to be prioritizing vaccines for residents of 40 small islands with populations of 1,000 or fewer, including Haiki, Kastellorizo and Meganisi, before vaccinating people on popular tourist islands such as Mykonos and Crete.

The aim is to vaccinate as many people working in the tourism industry as possible, making it safer for them and for visitors in the process.

“We believe that the latest announcement from the tourism minister regarding Greece welcoming British tourists from mid-May and the protocols required for travel to Greece will help build consumer confidence ahead of the summer season,” says Dimos Stasinopoulos, CEO of Epoque Collection, which has properties in Santorini and Athens.

“We will be introducing a number of safety measures at OMMA Santorini when it opens in May and will be offering flexible cancellation policies to put our guests’ minds at rest.

“The safety measures at OMMA Santorini include temperature checks, safety kits in each room, frequent cleaning protocols as per WHO standards and disinfected key cards.”

Israel’s green pass

Israelis receive a “green pass” after vaccination which can be used to grant access to venues and events.

JACK GUEZ/AFP via Getty Image

And it’s not just Brits that are being courted by tourist hotspots across southern Europe.

Israel has the most successful vaccine program in the world, with 4.8 million of its 9 million people fully vaccinated with two doses and 80% having had at least one jab.

With pent up demand for holidays growing, the lastminute (lm) group teamed up with the Issta Lines Group this week to launch Hebrew site lastminut.co.il in a bid to entice Israeli travelers desperate to get away after their year-long Covid nightmare.

“For such a small country, pretty much everyone travels by plane, so for them in particular it’s felt hard to be “locked in,” says Andrea Bertoli, Deputy CEO of lm group.

“In similar echoes to what’s been happening in the UK as the vaccine program accelerates, the talk [in Israel] has been about the skies opening.

“In fact, in Israel, it’s probably one of the main aspects of Covid-19 discussions since the infection rates started to go down.”

The country has penciled in travel agreements with Cyprus and Greece, but is planning to introduce strict rules amid concerns about the importation of more contagious variants of Covid-19.

Bertoli explains that travelers will need a so-called “green passport” proving they’ve been vaccinated, with no travel allowed until 10 days after a second dose.

Israel’s high levels of vaccination also mean it’s ripe to attract visitors looking for a Covid safe break.

“The success of Israel’s vaccination roll-out has given hope for the return of international tourism,” says Sharon E. Bershadsky, director of The Israel Government Tourist Office UK.

“It is allowing the industry to plan for the return of tourists in the not too distant future — making Israel not only an attractive destination, but a healthy destination.”

Bershadsky is optimistic that tourists can return “soon.” And with its vaccination program almost complete, it could mean the country enjoys a tourism boom while others play catchup.

Too early to book

Greece plan to open its borders to British travelers on May 1.

LOUISA GOULIAMAKI/AFP via Getty Images

Despite tourism boards and operators making every effort to prove they can safely host visitors, the fact remains that leisure travel will not be possible for some weeks at least.

Portugal remains on the UK government’s “red list” of countries, from which any arrivals must spend 10 days in hotel quarantine at a cost of £1,750 (around $2,400).

While this may change, booking right now is a major risk according to Rory Boland, travel editor at consumer website which.co.uk.

“Our advice is that it is too early to book,” he says. “You don’t know where you can go or when you can go and booking at the moment opens you up to financial risk.”

Boland also points out that stories about increased demand don’t tell the whole story.

“Some of the headlines you’ve seen of 500% increase in bookings are from very low original numbers,” he says

“Yes, there is a group of people, particular older people, who feel more confident about booking holidays abroad to countries that are making noises about allowing vaccinated people in. There are a lot of risks still attached to that.”

Boland highlights the fact that, as with the UK government’s much derided travel corridors policy in 2020, destinations could potentially end up on the “red list” while holidaymakers are on the beach or lying by the pool.

That could mean having to quarantine in a managed facility at their own cost, something which would not be covered by insurance.

Then there’s the added cost of Covid tests, which are likely to be required anywhere between three or five times on a trip depending on the destination. Currently a PCR test costs around £100 ($139), which soon adds up if you’re a family of four.

Green corridors

“We’re calling for travel companies to be up front,” adds Boland. “You can’t just keep promising flexibility will cover you in every eventuality, because it won’t, not right now.”

Although it may be too soon to book, vaccines appear to be the most certain way for travel to start up again safely.

“We are really optimistic that a green corridor agreement between individual countries if not a common green passport will be accepted across Europe and the UK,” says Andrea Bertoli.

“While it’s not quite a turbo-boost to tourism, it means we can certainly put the key in the ignition.”

Although a unified vaccine passport is unlikely to be agreed soon, there’s no denying those that can prove themselves to be immune to Covid are likely to power the travel industry for the rest of 2021 and well into 2022 as well.

The race for bookings is on.

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30-Year Mortgage Rate Tops 3% for First Time Since July

Americans who purchased new homes or refinanced their mortgages over the past few months may have done so at just the right moment.

The average rate on a 30-year fixed-rate mortgage rose to 3.02%, mortgage-finance giant

Freddie Mac

said Thursday. It is the first time the rate on America’s most popular home loan has risen above 3% since July and the fifth consecutive week it has increased or held steady.

Mortgage rates fell throughout most of 2020 after the Covid-19 pandemic ravaged the economy. That helped power the biggest boom in mortgage lending since before the financial crisis, fueled by refinancings. When rates hit 2.98% in July, it was their first time under the 3% mark in about 50 years of record-keeping.

The recent upward moves paint a clear contrast: More vaccinations in the U.S. and recent progress on the latest coronavirus relief bill have brightened investors’ outlook on the economy, a key variable in determining borrowing rates.

Mortgage rates tend to move in the same direction as the yield on the 10-year Treasury, which has been rising. Treasury yields rise when investors feel confident enough in the economy to forgo safe-haven assets such as bonds for riskier ones including stocks. Last week, the yield hit its highest level in a year.

Freddie Mac chief economist

Sam Khater

said he expects a strong sales season, partly because he thinks “the uptrend in rates from here will be more muted than the past few weeks.” The Federal Reserve has said it would maintain ultralow interest rates until the economy improves.

“The Fed has seen the carnage from the last crisis, and they don’t want to pre-empt the recovery by starting to raise rates and choking off that nascent recovery,” Mr. Khater said.

However, rising rates have started to weigh on home purchase and refinance applications in recent weeks.

The U.S. mortgage market involves some key players that play important roles in the process. Here’s what investors should understand and what risks they take when investing in the industry. WSJ’s Telis Demos explains. Photo: Getty Images/Martin Barraud

Higher mortgage rates could discourage some would-be buyers from trying to purchase a home during the key spring selling season, because higher interest rates translate into larger monthly payments. That could prompt people to search for a cheaper house or to put their homeownership goal on hold.

Even before the recent climb in rates, surging U.S. home prices had begun to outweigh the savings afforded by historically low borrowing rates. The typical monthly mortgage payment in the fourth quarter rose to $1,040 from $1,020 a year earlier even as mortgage rates declined, according to the National Association of Realtors.

Rising rates can also put the brakes on refinancings, which accounted for about 60% of mortgage originations in 2020, according to the Mortgage Bankers Association.

With a 30-year rate of 2.75%, about 18 million U.S. homeowners could reduce their monthly payments through a refinance, according to mortgage-data firm

Black Knight Inc.

When the rate rises to 3.25%, the pool of eligible homeowners shrinks to about 11 million.

Homeowners such as Lindsay Ellis of Charlotte, N.C., who closed on a refinance last month, may have locked in some of the lowest mortgage rates available for the foreseeable future.

Ms. Ellis cut the rate on her condo from about 4.6% to 2.9% through a refinance with

Rocket

Cos. She hasn’t decided where she’ll put the roughly $160 in monthly savings, but she plans to explore different investment options.

“I didn’t have to do a lot of the work to shop around and compare rates because the rate they gave me was great,” she said.

Ms. Ellis wouldn’t have qualified for a refinance when rates began falling last year because unemployment benefits kept her afloat for part of 2020. Ms. Ellis, a fitness director, was furloughed from her job last St. Patrick’s Day and couldn’t return until the fall. She began to consider the refinance shortly after.

Write to Orla McCaffrey at orla.mccaffrey@wsj.com

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