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  Provided to you Exclusively by Lillian Wong
Lillian Wong
Lillian Wong
Sr. Loan Officer
NMLS ID 630337
Lillian Wong & Associates
NEXA Mortgage
Office: 480-650-5412
Email: lwong@nexamortgage.com
Website: www.lillianwong.net
  Lillian Wong & Associates<br>NEXA Mortgage
For the Month of September 2022 --- Vol. 16, Issue 9
  In This Issue  

"Do things for people not because of who they are or what they do in return, but because of who you are." - Harold S. Kushner

What to Watch - How high can inflation go? Will the U.S. officially fall into a recession? Is the labor market slowing?

Looking to Move? How to Find Your New Favorite City - Do a little research and determine what must-have factors you need to locate your perfect home.

Brighten Your Walls Without the Expense - Cleaning your walls is a quick and easy way to give them a quick refresh.

Q&A: With Mortgage Rates Increasing, Is It Still a Cheaper Option to Purchase a Home Than Rent? - Despite the rise in mortgage rates, mortgage costs might be cheaper than rent in several cities.

Please feel free to forward this newsletter to friends, family or co-workers who may find it helpful.

  What to Watch  

Inflation? Recession? Is the labor market slowing?

How high can inflation go? Will the U.S. officially fall into a recession? Is the labor market slowing?

But the big question in the coming months...how high the Federal Reserve will raise rates but not too much as to push the economy into a recession. These are just a few questions or What to Watch in the near future.

Ahead of the Federal Open Market Committee meeting on September 20-21, Fed members will get readings from the inflation reading Core PCE, the Consumer Price index, the August Jobs Report and a few key Consumer Sentiment reports will be released. The data will be closely watched by Fed Chair Powell and his group of economists which will dictate monetary policy. The Fed controls the short-term Fed Funds Rate (FFR) which is the rate at which depository institutions, such as banks, savings and loans, and credit unions, charge each other for overnight loans.

An increase in the FFR essentially removes cash from the system and raises the savings rate which could discourage spending and that can lead to an economic slowdown or eventually a recession. Borrowing costs for short-term loans like credit cards, auto loans and the like tend to increase.

So, what does this mean for mortgage rates? If an economic slowdown or recession occurs, investors tend to move assets into the bond market's longer-term securities which in turn lowers borrowing costs for mortgages. On June 16, the 30-year fixed rate mortgage was 5.80% as reported by Freddie Mac. On June 15 and July 27, the Fed raised the FFR by a total of 150 basis points. By August 4th, the 30-year fell to 4.99% before the recent increase.

Bottom line: The big home price gains are starting to ease while inventories are beginning to increase, which is a good sign for prospective homebuyers.

Source: Mortgage Market Guide

  Housing News  

Looking to Move? How to Find Your New Favorite City

If you're looking to move to an affordable city with a favorable cost of living, you might wonder what cities or states can help you cut costs. Doing a little research to determine where you want to live is vital so you can find a place that works well with your budget and makes you feel at home.

Affordability: Most people prefer to have some breathing room when it comes to their budget. In this aspect, affordability involves the total living costs, including housing, transportation, groceries, and other necessary expenses. The less you need to spend, the more affordable your lifestyle is.

Employment opportunities. While many professionals work remotely, employment opportunities remain a crucial and deciding factor in where to live. Research the job market in different areas and determine where the highest concentration of jobs is located.

Climate. For many homeowners, the climate can be a deal breaker. If you're someone who doesn't mind cooler temperatures, think about including northern states. If you prefer the beach to the slopes and enjoy a more mild January, a location along the Sun Belt might be for you.

Housing market. While real estate values can often fluctuate, you'll want to understand the city's real estate market. Research current home prices and short-term home price trends, as well as the length of time for-sale homes, sit on the market.

Although moving to a new area can feel daunting, selecting the best location is one of the most crucial choices you will make. For additional help, make sure you reach out to a local real estate professional.

Sources: Moneycrashers.com, Moving.com

  Home Improvement  

Brighten Your Walls Without the Expense

While you may think about giving your home an update with a new coat of paint, you can also consider giving those walls a thorough cleaning to refresh your space.

Many people frequently vacuum their rugs and mop the floors but may not think about cleaning the walls unless a stain appears. Regardless of how well you maintain your home, scuffs and oil spots can leave marks on the walls and cause your home to look unkempt.

Before you begin to clean the walls, make sure to consider the finish. Whether it's flat or glossy determines how scrubbing affects the wall surface.

Walls with flat paint, which also include eggshell and satin finishes, aren't as durable when it comes to cleaning. Avoid using harsh chemicals or degreasers and scrub gently. Glossy or semi-glossy walls are durable and can take a mild degreaser. Make sure to avoid scratches by using a soft sponge when cleaning. After you determine the type of paint, follow these steps to clean the walls:

Dust. Remove any dust from the surface to ensure that a liquid mixture won't wet any debris and create new marks of dirt. You can use a vacuum cleaner with a brush attachment, flat mop, or tack cloth.

Mix a cleaning solution. For oil-based painted walls, combine 1 teaspoon liquid dish detergent into 1 quart of warm water. Stir in 1/4 teaspoon white vinegar. Gently scrub the walls with this mixture. For latex-based paints, move straight to painting the walls.

Touch up the walls. One of the best ways to spruce up the walls after cleaning is to touch up any paint scratches or stains that persist. This practice can extend the life of your wall paint and keep your home looking fresh.

The best way to prevent major stains and scuffs on your walls, clean them as they happen. Staying proactive makes it easier for a professional or for you to paint when the time comes for an update.

Sources: Cleaning.lovetoknow.com, Mydomaine.com, BHG.com

  With Mortgage Rates Increasing, Is It Still a Cheaper Option to Purchase a Home Than Rent?

QUESTION: Is It Still Cheaper to Buy Than to Rent?

ANSWER: Potential homebuyers hoping to purchase a home in 2022 have dealt with changing mortgage rates and growing home prices. Some potential homebuyers may be thinking twice about buying in favor of renting, but that's not always the most financially savvy choice.

In some of the country's biggest markets, which include parts of the Midwest and South, buyers of starter homes garner bigger financial advantages. A few of the cities where it's cheaper to buy than rent include the following:

  • Pittsburgh, Pennsylvania: $522 difference.
  • Birmingham, Alabama: $377 difference.
  • St. Louis, Missouri: $284 difference.
  • Cleveland, Ohio: $198 difference.
  • Baltimore, Maryland: $164 difference.

While historically high inflation rates have caused mortgage rates to rise above 5%, potential homebuyers can still take advantage of the benefits of homeownership by purchasing a home. If you're interested in buying a home or want to check your eligibility, reach out to a local mortgage lender for additional information.

Sources: CNN.com, Themortgagereports.com/p>


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