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DAYTONA REAL ESTATE INVESTMENT NEWS
CHINESE YUAN DEVALUATION MAY 25, 2016 TRIGGERS US COMPANY'S WITH CHINESE INVESTMENTS A
20+ BILLION COST IN ADDITIONAL INTEREST PAYMENTS NOW DUE TO CHINA
DAYTONA REAL ESTATE INVESTMENT NEWS 5/27/2016 JUST THE FACTS

NEWS BRIEF

Wall Street: 
The Global Trading Downside

Slide Show:
The Good Bad and America

Real Estate:
Homes For Sale

STOCK MARKET

THE GLOBAL MARKET
With the recent sliding of the Chinese Yuan the Financial Market is bracing for the impact. Euro Analyst predicted in August 2015 when the initial Yuan devaluation occurred, that the Chinese Government had more devaluations in line for 2016. If this spreads to other Countries it will result in a worse than 2009 Global downturn and USA Investors will be affected dramatically.

GOVERNMENT
The Federal Reserve Board Chair Janet Yellen a Democratic Appointee and Bureaucrat had indicated at the last Fed Meeting that another FED Interest Rate Hike was on the table for the Mid-June meeting. There was no indication at the May meeting how the FED would react to a future Chinese Yuan devaluation. 

STOCK MARKET
Wall Street has not reacted to the May 25, 2016 devaluation. The downside of the Yuan devaluation is that US Company's that are invested in China will have a payout of over 20 BILLION in additional Interest Rates to China for the pending devaluation.



A FUTURE FINANCIAL OUTLOOK
If your investment portfolio has USA Company's with China investments, your 3rd quarter statement (9/30/2016) may reflect the results of what has just occurred in China. As of 5-25-2016 the China Yuan and Hong Kong Dollar is down -0.04%.


 

ANALYSIS
The Real Estate Market and the Housing Market in the USA is at +0.1% (one tenth percent) for January through April 2016 according to the National Association Of Realtors.

The market hasn't improved since the last FED interest rate increase on December 16, 2015 and subsequent US Financial Market crashings, beginning 2 days later. 

 USA FORECLOSURE HISTORY

                                            540,000
                                            569,835
                                            575,378

2016
2015
2014


REAL ESTATE FUTURES
A FED Interest Rate increase will in all probability take the wind out of any future rebound and growth of the Real Estate Market.

 
COMMENTARY
The Real Estate Financial Market needs to be rebuilt easing underwriting and making housing affordable for the $25,000 to $250,000 dollar buyer.

Currently the majority of real estsate sales are from $250,000 to $1,000,000+ range. It has become more difficult for the First Time Homebuyer to enter the home ownership market. It is even more difficult for the First Time homebuyer to step up to a larger single family home under $250,000.

Market News Puzzle Piece

YUAN DEVALUATION COSTS INVESTORS 20+ BILLION

REAL ESTATE MARKET NOT IMPROVING

FED INTEREST RATE HIKE
MAY INCREASE FORECLOSURES

 

HOME QUICK QUALIFIER INFO
Median Income
2016 - $30,255.
2000 - $28,408.
Home Average Price
2016 - $232,500.
Income to Qualify with 20% Down 2016 - $5,000.00 Month
Loan Rate 3.5% 30 due in 30Yrs.
Payment $821.00
Taxes and Insurance $179.00
Other Debt $500.00
Note:
Red indicates a Potential Deficiency
Home Loan Wholesale Retail Rate
30/30 -417K 3.64% ^ 4.125 %
5/25 -417K 2.89% ^ 3.250 %
15/15 -417K 2.87% ^ 3.375 %
30/30 +418K 3.82% ^ 4.375 %
Commercial .5 Cost ^ .5 Cost ^
7/20 Yr. 6M 6.020 %
Prime Rate 3.50 % unchanged
0 Point Rates Actual Estimated
INTEREST RATES
Speculation: The FEDERAL RESERVE BOARD has indicated monthly that the FED will move to increase interest rates again in 2016. When this occurs be prepared for Mortgage Rates to rise. Currently mortgage rates are not market driven. They are adjusted by the government because Fannie Mae and Freddie Mac, the two largest Mortgage Banks in America have been in a Government Conservatorship since 2008.

      

COMMENTARY

The  Family Average Income is $52,000. annual now in 2016. As you can see there is a shortfall of about $8,000 annual income to by a Average Priced Home.

The other issue is the down payment of $46,000 plus Closing Costs and any additional costs based on locality requirements.

Any interest rate increase would in probability result in less Resale Housing Sales.

 

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