Explaining the Fiscal Cliff, and how to speed up your computer

IN THIS ISSUE...

	"TEN PEOPLE WHO SPEAK MAKE MORE NOISE THAN TEN THOUSAND WHO ARE SILENT." - Napoleon Bonaparte. There have certainly been more than ten people speaking, as politicians attempt to avoid the looming Fiscal Cliff. But that's not the only story we need to watch. The articles below highlight important news stories impacting you and the markets: Cliff Approaches, Housing Rises - Despite some negative news, the housing market showed positive signs...which is more than we can say for the fast-approaching Fiscal Cliff. What to Watch - Do you know how to budget for postal costs in the coming year? Not So Fast - Check out these tips to make sure your computer runs fast and safe! Q&A: Unemployment by State? - You'll want to see the stats and map below. If you have any questions or would like to discuss your unique situation, call or email today. Please forward this newsletter to friends, family members and coworkers who may find this information helpful.

Cliff Approaches, Housing Rises

	One of the bright spots of last month was the housing market. Despite weak numbers for New Home Sales, Pending Home Sales came in better than expected for the month of October. Housing Starts were also reported at the highest rate since July 2008. Finally, home prices in the Case-Shiller Home Price Index increased 3% over the past year. Those numbers are encouraging because they present a positive outlook for housing in the near future. Despite that good news, the main focus in the markets is the uncertainty of the looming Fiscal Cliff. If you've been wondering what the Fiscal Cliff is about, here are the main issues. As we head into 2013, tax cuts for individuals and various tax breaks for businesses are due to expire, taxes pertaining to President Obama's health care law will begin, spending cuts enacted by Congress as part of the debt ceiling deal of 2011 will go into effect, and long-term jobless benefits will expire. The Congressional Budget Office (CBO) estimates that if all of these items occur, it could take an estimated $600 billion out of the U.S. economy in 2013, pushing the country into a recession. Given that Europe is officially in a recession for the second time in four years, it's especially important that our leaders take action now before our economy follows suit. Inflation issue? Heading into 2013, another important issue to monitor is inflation. Remember that one of the goals of the Fed's latest round of Bond buying (known as Quantitative Easing or QE3) is actually to create inflation. While the latest Producer Price Index and Consumer Price Index reports show that inflation remains tame at the wholesale and consumer levels, inflation can manifest and get out of hand quickly. This is significant because inflation is the archenemy of Bonds (that means they're also the enemy of home loan rates, which are tied to Mortgage Bonds) because it reduces the value of fixed investments like Bonds. What does this mean for home loan rates? Bonds and home loan rates should continue to benefit from the continued uncertainty in Europe, and the uncertainty here regarding the Fiscal Cliff, as investors will likely continue to see our Bond market as a safe haven for their money. But inflation is a very real threat to home loan rates, and we need to keep a close eye on it in the weeks and months ahead. The bottom line is that now is a great time to consider a home purchase or refinance, as home loan rates remain near historic lows. Let me know if I can answer any questions at all for you.

What to Watch: Postal Rates in 2013

	The U.S. Postal Service recently announced some changes that will take effect in 2013. On the one hand, the cost to mail a single-piece letter will increase by just one cent. On the other hand, the Postal Service will introduce a new way to save in 2013 with Global Forever Stamps. The information below can help you plan for your postal expenses and figure out how you can save. Postal Prices in 2013 Letters (1oz.) -- 1-cent increase to 46 cents Letters additional ounces -- unchanged at 20 cents Postcards -- 1-cent increase to 33 cents Remember, the Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations. Save with Global and U.S. Forever Stamps The U.S. Postal Service will introduce a new Global Forever Stamp in 2013. The new stamp will allow customers to mail letters anywhere in the world for one set price of $1.10. In addition to the Global Forever Stamp, the Postal Service already offers Forever Stamps for mailing within the U.S. If you purchase Forever Stamps prior to the one-cent increase, you can still use them even after the price change. As the Postal Service likes to say: Forever really means forever. So consider purchasing Forever Stamps now before the price increase. Forever Stamps are widely available through Post Offices, consignment locations, automated postage centers, and The Postal Store®.

Not So Fast: Try These Tips Before Purchasing a Faster New Computer

	Computer issues are something that most everyone has experienced-and they are certainly a big factor that can impact (and sometimes even halt) productivity during the day. Often, one of the biggest culprits for a slow or malfunctioning computer is malware. Malware is short for "malicious software" which includes both software and viruses installed on your computer without you knowing it... and without your permission. Once on your computer, malware can slow down your computer or even crash it, take control over other software, 'spy' on your online activity, and even track your keystrokes in order to steal your login and password information. The Federal Trade Commission's website, On Guard Online, suggests a number of ways to prevent malware from being installed on your computer-and to remove it once it is there. First, make sure your web browser and operating system are set to update automatically. Next, use a pop-up blocker, or set your browser to stop them. And definitely don't click on pop-ups that you come across randomly surfing the web. And if you frequently download software, music, videos, or other files, make sure you do so from sites you trust implicitly-downloads are perhaps the single most frequent way to get malware on your computer. Of course, up-to-date virus software is also critical to maintain. And there are even free versions like Microsoft's little known Security Essentials or AVG Anti-Virus. Both offer robust malware protection without hogging system resources on your PC. For more tips on how to protect your computer from malware, visit On Guard Online. And don't forget to share these great resources with your friends and family members!

Q&A: Unemployment by State?

	QUESTION: What's the unemployment rate in my state? ANSWER: Based on the most recent report, 37 states and the District of Columbia saw declines in the unemployment rate, while 6 had no change. On the flip side, however, 7 states saw increases. Year-over-year, 42 states plus the District of Columbia recorded unemployment decreases. Because housing and jobs are so closely related, it is important to watch for changing trends in the Unemployment level. The chart below displays current levels of unemployment by state.

	The material contained in this newsletter has been prepared by an independent third-party provider. The material provided is for informational and educational purposes only and should not be construed as investment, financial, real estate and/or mortgage advice. Although the material is deemed to be accurate and reliable, there is no guarantee it is without errors.  As your Trusted Advisor, I always want to make sure you are clear on all details of the home financing process. If you or someone you know are interested in purchasing or refinancing a home, give me a call today! Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated. Mortgage Success Source, LLC does not grant to the recipient or distributor a license to any content, features or materials in this email. You may not distribute, download, or save a copy of any of the content except as otherwise provided in our Terms and Conditions of Membership, for any purpose.