Ron Granado’s 2016 Economic Outlook
Ron Granado Writes About 2016 Economic Outlook
2016 is projected to be the year when the biggest number of boomers hit age 59, which is the mandatory minimum age for when distributions can begin on retirement accounts such as IRA’s. What does this mean for the stock market and the 2016 Economic Outlook? Well a large systematic withdrawal of equity funds can mean a slight correction in the large indices such as the DOW Jones Industrials and the S&P, and could also spur a natural progression from equities to the bond market, since they are seen as a safer investment for retirees. What this means is that investors will be transferring their money from the stock market and investing it into the bond market. This will lower yields for the short term, and hence, lower interest rates as a result. Although the Federal Reserved Board raised interest rates by a quarter percent recently, all economic signs and economic signs still point to a relatively low inflationary environment. Social security has said no benefit increase for 2016, and salaries are not increasing at the pace economist would hope for. China has devalued their yuan, a sign their economy is not growing, and they need foreign money to purchase their exports, which when priced higher, seem less attractive due to the substandard quality of the inventory.
2016 Economic Outlook: Mortgages
Fannie Mae has loosened their mortgage lending guidelines to allow a primary wage earner’s credit score to be used for qualifying and pricing, provided he or she makes 55% or more of the income. Mortgage lenders are still working out the mortgage lender overlays, but expect better programs come spring. If you want to buy, take advantage of the pricing, prices (which are rising), and low down payment requirements. This is probably the last year in most markets where we will see an undervalued bargain. Moving forward you can expect an auction market to return where bidders will out-price each other till they get what they desire. Waiting will no longer be a virtue, rent will go sky high, and prices will become unaffordable. Get with a loan professional to go over your credit, and get your deposits and income in order, for compliance is the name of the game. Large deposits, gifted money, unverifiable income, and recent credit purchases are all being looked at carefully and need to be thoroughly reviewed prior to submitting the mortgage loan package for processing and underwriting. If you pay rent, make sure you pay in check, not cash because that is the only way a verification of rent will be valid. If you apply for a home loan, do not apply for a car and furniture loan the next day or any other credit either prior or during the mortgage loan process. The name of the game is to package and present yourself as a candidate worth lending to, and everything matters.
About The Author: Ron Granado
This mortgage blog article on 2016 Economic Outlook was written by Ronald Granado of Plymouth Guaranty Corporation. Ronald Granado is a consultant and financial writer for Gustan Cho Associates and a veteran real estate, credit, and mortgage market expert. Ronald Granado is sought by many real estate industry professionals such as real estate attorneys, real estate brokers and agents, mortgage loan professionals, mortgage bankers, and public consumers for his extensive knowledge in compliance and industry regulations in the real estate and financial markets.
Ronald Granado is an expert in all areas of real estate and mortgage lending and his major strong points are sales, management, and marketing, title servicing and problem solving, banking, training, and account management.
Ronald Granado is in charge of sales and business development for Plymouth Title Guaranty Corporation and his passion is working with real estate professionals and lending professionals and sharing his invaluable expertise and experience with others who need to keep up to date with the many market changes in order to meet their needs.
On his spare time, Ronald Granado enjoys mixed martial arts, scuba diving, fencing, basketball, baseball, playing musical instruments ( Ron is an expert guitar player ), and most importantly, spending time with his wife and three dogs.
Ronald Granado is an expert consultant to many real estate and lending professionals. Ron’s expertise includes training mortgage real estate industry professionals, market analysis, focus groups, budgeting, payroll managements, investment and financial consulting, market analysis and updates, and customer and product training. Ron Granado has a proven track record where he has taken the growth of companies to realie a 20% to 50% growth in a matter of two years. Gustan Cho Associates is proud and honored to have Mr. Ronald Granado as a real estate and mortgage industry consultant and guest financial writer for Gustan Cho Associates Mortgage And Real Estate Information Center.
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