October 2023: What To Watch
October 16, 2023

In This Issue

"You'll never do a whole lot unless you're brave enough to try." - Dolly Parton


In today's economic climate, high interest rates and fears of a possible recession have made some feel hesitant about buying a home. In this issue, we'll offer some tips for purchasing a home in a declining market, along with the following topics:


What to Watch - Bank credit declining, tightening lending standards, inflation, and what's going on in the job market are all on the radar and "What to Watch" in the near future.


How To Buy a Home in a Difficult Market - Know the ways you can prepare to purchase a home in a declining market.


Ways To Use Natural Wood in Your Home - There are numerous ways to use wood throughout your home to add texture and warmth.


Q&A: What's Next After Closing on a House? - You've signed all the paperwork and received the keys to your new home. What do you do next?


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

What To Watch

Inflation On The Rise...Again


Bank credit declining, tightening lending standards, inflation, and what's going on in the job market are all on the radar and "What to Watch" in the near future.


The St. Louis Fed tells us that lending activity from banks continues to decline due in part to the recent abrupt deficit in capital spurred on by the huge drop in Treasury securities on the books. As yields surged, Treasury notes and bond prices dropped which reduced the value of trillions of dollars in fixed-rate bonds and loans that banks hold. This leads to reduced lending.


As banks tend to lend less during the above scenario, lending standards become tighter for consumers. It is now a bit harder to obtain a loan which the market has seen the Great Recession from 2007 to 2009, and more recently, the Covid-19 recession in 2020.


So, what's the takeaway? If it is harder for consumers and businesses to borrow, that means less economic activity which could lead to an economic slowdown.


On the inflation front, after seemingly bottoming in early summer, inflation looks to be on the rise again as the monthly Consumer Price Index jumped in August while oil prices gushed. Higher oil prices lead to higher prices at the pump which is an added tax on the consumer and is seen as inflationary.


The job market has been whacky at best. In 2023, job growth had been declining while prior month's data had been revised lower for each of the previous months. Just recently, the government's Job Opening and Labor Turnover Survey saw a jump in available positions, the September ADP Private Payrolls were anemic while the government's Jobs Report saw a huge gain in the headline Nonfarm Payrolls data. However, in the Household survey, where the unemployment rate is derived, the numbers are not nearly as good. The labor force pool only expanded by 90,000 and only 86,000 more people were employed which is a fraction of the 336,000 in the headline report.


Will lending and lending standards tighten further? Will inflation pressures increase? Will the labor market remain volatile, and will the Fed have to continue to hike rates and hold them higher for longer? Will there be an economic slowdown? These are the questions that may be answered as 2023 comes to a close.


Source: Mortgage Market Guide

Housing News

Home Improvement

How To Use Natural Wood To Add Warmth To Your Home


Natural wood elements can bring warmth and texture to your home, plus it's a classic look that never goes out of style. Here are some ways to add natural wood to your interior decor.


Install hardwood floors. Hardwood floors are a popular, timeless way to add natural wood to your home. You can find hardwood floors in various styles, like oak, bamboo, and walnut. Lighter wood can brighten a space, while dark wood floors can create a cozy, rich ambiance. Staircases are another place where you can add wood flooring for warmth.


Create an accent wall. If you don't want to commit to wood floors, create an accent wall instead. Choose a wall as a focal point for the room and add wooden slats as paneling. In addition to wooden slats, you can use wood to create board and batten, geometric accents, and other types of unique paneling for texture and interest.


Use wood furniture. For an easy way to add warmth to a room, use wood furniture. Items like wooden coffee tables, dressers, and bookcases can make a space feel complete. Choose the type of wood furniture that goes best with your personal style, such as a distressed wood dining table or an elegant mahogany bed.


Bring in wooden accessories. When using wood in your home, don't forget to use accessories to tie the space together. Accessories like shelves, vases, and decorative knickknacks can add character to a room. You can find unique wooden accessories at thrift shops, vintage stores, and even local craft fairs.


Natural wood elements make your home look classic and cozy. Consider these ideas to bring additional warmth to your space.


Sources: Woodgrain.com, Customhomegroup.com, Talesbytrees.com

What's Next After Closing on a House?


QUESTION: What do I do once I close on a house?


ANSWER: Closing is the final step in purchasing your new home. Before you officially move in, take the time to handle these final tasks.


Organize your closing documents. Buying a house involves a lot of paperwork. Organize these documents and store them in a secure place, such as a safe deposit box or fireproof safe. If you have electronic documents, upload them to a secure cloud-based storage website. Closing documents may include the mortgage, deed, and promissory note.


Change the locks. You have no idea who has keys to the current locks in your new home. To be safe, change them all as soon as you move in. You can install new locks on your own, or you can have a locksmith change them for you. Make sure you also change the codes to any programmable keypads.


Do a deep clean. Some sellers are better than others at cleaning their homes before moving out. For peace of mind, give your new home a deep clean. This process might include cleaning and disinfecting kitchen and bathroom surfaces, mopping and vacuuming the floors, and wiping down all the baseboards. If that sounds too overwhelming, consider hiring a professional cleaning service for the task.


Meet your new neighbors. In all the hustle and bustle of closing on a home, don't forget to introduce yourself to your new neighbors. Go around the neighborhood and make an effort to meet everyone. You can also search online for groups in your neighborhood to connect with others.


Closing on a home and moving in can be stressful. Follow these tips to make the process easier.


Sources: Living.geico.com, Mymortgageinsider.com

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