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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 May 2022 --- Vol. 16, Issue 5
 
  In This Issue  
     
 

"The first step towards getting somewhere is to decide you're not going to stay where you are." — J.P. Morgan

What to Watch - The difference between this year's spring homebuying season and last year's.

Buyers Are There, But Builders Aren't - Why is it that while the number of people wanting to purchase a home hasn't dropped, home builders aren't building quickly enough?

Hanging Patterned Wallpaper Like a Pro - Know what type of patterned wallpaper can help you transform the entire room.

Q&A: What Are Some Perks of Purchasing a Home? - Buying a home is a major investment, but it comes with a few key advantages over renting.

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

 
 
  What to Watch  
     
 

What's the Difference Between This Year's Spring Homebuying Season and Last Year's?

Well, the first is that in April of 2021 the 30-year fixed-rate mortgage was 2.98% whereas this year that rate has climbed to just over 5%. Home prices are up 20% since April 2021. Throw in below normal housing inventories, and we could be seeing a slowdown in the sector. So, the cost to purchase a home has risen exponentially from last year.

A recent report from technology-powered real estate brokerage Redfin revealed that the typical home buyer's monthly payment rose 39% annually from April 2021 to April 2022 ... the largest annual increase on record. Last year at this time, the average monthly mortgage payment was $1,635 and has risen to $2,349 at the current rate. Also, homebuyer competition declined in March for the first time in six months due to the rise in mortgage rates and higher home prices. As demand slips it is pushing more sellers to drop asking prices.

Redfin Chief Economist Daryl Fairweather said, "The number of buyers willing to pay such high mortgage payments could evaporate by late summer."

That is what we must watch. Will mortgage rates continue to rise and will soaring inflation continue to eat into potential buyers' pockets? The Federal Reserve has vowed to combat rising inflation with all its tools to bring costs down. Time will tell.

But to put it in perspective, 15-20% gains on housing prices are historically frothy. Here are a few facts. U.S. house prices rose 17.1% year over year in December 2021, following an increase of 18.4% year over year in the previous quarter. However, growth data available from March 1992 to December 2021 showed an average growth rate of 5.3%. CoreLogic recently forecasted that home price gains will rise 6% from March 2022 to March 2023.

Bottom line: Now is always a good time to purchase a home for every day a new family is formed, or single people are looking to dive into homeownership. It's historically a good investment if you hold onto it long enough and it's YOUR place to call home.

Source: Mortgage Market Guide

 
 
  Housing News  
     
 

Buyers Are There, But Builders Aren't

Over the past several years, the number of people interested in purchasing a home hasn't waned. However, while buyer demand remains high, a survey conducted by the National Association of Home Builders and Wells Fargo Housing Market Index says that home builders continue to grow discouraged about the housing market.

For the first time since September 2021, homebuilder confidence has dropped below the 80-point mark. In March 2022, the index dropped to 79, which was two points lower than the previous month. It also marked the fourth straight month of declining confidence.

Ongoing lumber and building material supply issues and labor shortages as well as increasing construction costs are contributing to this downturn. Supply chain issues have caused difficulty with builders' access to lumber and other building materials. Increasing construction costs are up 20% over the past 12 months, adding to the growing concern from builders.

Another issue involves rising mortgage rates. As of March 2022, the average rate for a 30-year fixed-rate mortgage was already a full percentage point higher than it was just one year prior. Expected higher interest rates might price prospective buyers out of the market as well, which deters builders from constructing homes that might sit vacant longer.

Material delays and sourcing workers continue to make significant challenges for builders. There's also some worry that the housing market might face further difficulty during the later part of 2022, but it's still too early to determine what kind of overall effect it will have.

Despite the worry about finding builders to construct homes, buyers can still find affordable houses for sale. To get started on your search, contact a real estate professional today.

Sources: Housingwire.com, CNBC.com, Marketwatch.com

 
 
  Home Improvement  
     
 

Hanging Patterned Wallpaper Like a Pro

After losing popularity for the past several years, wallpaper is making a comeback. Attractive wallpaper can make a huge difference in transforming the overall appearance and finish of a room.

However, that doesn't mean that wallpaper is easy to hang, especially if your wallpaper has patterns that must align. If you're working with patterned wallpaper, you might need to practice with a few sheets to make sure you're paying attention to every detail. After all, you likely spent a lot of money on the wallpaper and don't want to mess up the installation.

When it comes to patterned paper, there are two different types: straight match and drop match. To determine which one you have, check the label of your paper. A symbol with two arrows opposite one another signals it's a straight match, while a drop match has a symbol with two staggered arrows.

A straight match means each strip lines up at the ceiling line, creating a horizontal pattern sequence. A drop match lines up at the ceiling with every other strip, creating a diagonal pattern sequence.

For a straight match, simply cut the paper and line up the pattern on the side furthest from you. You need to be more careful with a drop match. Place the first cut sheet on the table, and unroll the next length so the pattern matches on the near side. Pay particular attention to the patterns and make sure they align.

Adding patterned wallpaper can completely transform a room and give it detail that you won't find by simply painting the walls. Knowing what type of patterned paper you're using can help you when installing these beautiful sheets of paper, giving you a seamless design.

Sources: Wallpaperdirect.com, Wallpops.com, Bobvivla.com

 
 
  Q&A  
     
  What Are Some Perks of Purchasing a Home?

QUESTION: What Are the Benefits of Home Ownership?

ANSWER: When it comes to owning a home, you gain several perks that come along with attaining the American Dream. These benefits range from social to financial, and include the following:

Gives you a sense of pride. Since your home is entirely yours, you can customize your home however you deem fit. You can add your own touch to the interior and exterior without needing to seek approval like you would with a rented space.

Builds equity. As you pay off your monthly mortgage, you're building equity in your home. Equity refers to the amount of value you have in a particular asset.

Strengthens your credit. As long as you make consistent monthly payments, you'll build your credit. As a result, it becomes easier for you to secure other types of financing.

Qualifies you for potential tax benefits. This is one of the major benefits of homeownership because you can deduct some of the taxes you pay the government. This includes the mortgage interest, which can amount to thousands annually.

Making the jump from renting to buying is a big step, but it's one that comes with huge rewards. If you're ready to make that leap, reach out to a trusted real estate professional and you can be one step closer to homeownership.

Sources: Keepingcurrentmatters.com, Fortunebuilders.com, Investopedia.com

 
 

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