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 JUST THE FACTS    12/31/2015                      DAYTONA REAL ESTATE INVESTMENT NEWS            

INTEREST RATES
Real Estate is the BIG ticket item for Banks and the American Homebuyer.

Interest rates have been at a all time low for the last 7 years.

The reasoning for this low interest rate was to stimulate the home and  commercial construction and their respective resale markets. This has not happened.

Why? Because the American economy is depressed. American's Jobs and Industry have been sent to other countries around the world.

Americans have had their work hours and income cut in addition to having to find new businesses and work. How can you buy Homes for 100's of thousands of Dollars when you are making only $7.50 to $19.00 an hour. This number needs to be $20. to $50. dollars an hour, average, for Union and Technical employees, for a USA recovery.

In our realistic example below, lets pre-qualify a  husband and wife that earn $12.50 an hour each based on a 40 hour week for a home, two cars and two children.

Gross Income $52,000. Annual (2015)
Qualifing Ratios: 33% /38% Max.
$4,333.00    Gross Income Monthly
Average Cost of a US Home  $249,000
Example Home Price $125,000  @ 4.75%
$   852.00   House Payment  - Ratio: 19.7%
$   516.00   All Other Debt     - Ratio: 31.6%
$   854.00   Food
$2,222.00   Total Debt
$1,083.33   Income Tax         - Ratio: 25%
$3,305.00   Total Of Above Expenditures
$1,028.00   Family Cash $34.26 Daily


 

Home Loan FHLMC Rate RetailRate
30/30  -417K 4.14 % 4.75 %
5/25    -417K 3.25 % 3.625 %
15/15  -417K 3.39 % 3.75 %
30/30  +418K 4.01 % 4.50 %
Commercial Estimate
7/20 Yr. up to 6 Million 6.025 %
0 Point Rates Actual Estimated

AMERCIANS ON THE ECONOMY

              Red = Worse                

Prime Lending Rate 
~ Increased 0.25%
(Issue: Lenders will usually hedge a increase that tends to double the actual increase)

US Prime Rate 3.50% - UP
USA Consumer Confidence 15 Month Low
Black Friday turned Red

-11% Sales
Compared to 2014

 Inflation  Retail Value
Item Costs $10 in 1990 $18.16 in 2015
Item Costs $10 in 2000 $13.78 in 2015
Item Costs $10 in 2008 $11.02 in 2015
$1.00 in 2008 you need $  1.10 in 2015
$1.00 in 2000 you need $  1.38 in 2015
$1.00 in 1990 you need $  1.81 in 2015

$24,000 - Annual Income is considered Poverty Level in the US. <$66.66 Daily>
43,502,782 -  people are living in Poverty  7.41%         - of the US population.
                     Up 3,699,544 from 2008.

39% ^ - US SPENDING FOR 2015

12/31/2015              430 BILLION OVER BUDGET

1 TRILLION 100 BILLION BUDGET
Obama Math:
FEDERAL RESERVE INCREASES THE PRIME LENDING RATE IN AMERICA

The Prime Lending Rate to Banks increased from 3.25% to 3.50% on December 16, 2015.

There has been an indication by FHLMC-Freddie Mac that they are not increasing their Rates on Mortgages.

A closer look indicates that Freddie is now CHARGING 0.5% (a half point) for the Lower Rate instead of 0.0% "zero point".

Continued:
History shows that when the FED raises rates, all Credit Markets increase their rate to the Consumer including
Mortgage  Interests Rates who ranks #1.

The FED's move is in the opposite direction of the Euro Central Bank who lowered their Prime Lending Rate to 0% on 11/30/2015.

US National Debt -$18.8 Trillion ^
USA - Debt Per Person -$58,373.18 ^

 

USA-Social Security Trust Fund Balance 0

Administered by US Treasury Dept.
IOU's to American's Social Secutity Trust Fund 

-$15Trillion ^
OOA-TV Copyright 2015 All Rights Reserved  Robinson Reporter Tracking America's Future
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