The Fiscal Cliff, and Hosting the Holidays!

IN THIS ISSUE...

	"GONNA KEEP ON TRYIN' TILL I REACH THE HIGHEST GROUND" - Stevie Wonder. Last month, we saw good news in the housing market as it continued to climb to higher ground. But despite the good news in housing, the country is still heading toward a cliff that could pull the economy back down. The articles below break down the highs and lows...and explain what they mean. October Treats – The housing market received good news in October, but that news needs to be tempered. What to Watch – The fiscal cliff will likely shift back to the main topic in politics and the markets. Hosting the Holidays – Use this idea to make sure the holidays are more enjoyable for your guests...and you! Q&A: Leak Free? - Here's a simple tip that can help you save money at home. 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.

Recent Reports Offer a Treat

	The housing market received more good news in reports released last month. As you can see in the chart, New Home Sales jumped 5.7% in September. That report comes after the news that Housing Starts surged 15% in the latest report to its fastest pace in more than four years, signaling that the housing sector's recovery is gaining some momentum. Also encouraging was the news from RealtyTrac that foreclosure activity declined to a five-year low in September, falling 7% from August and 16% from the same period last year. Housing has already improved substantially in certain parts of the country and this news bodes well for those states and areas that struggled with high foreclosure activity. In addition to the good housing news, Consumer Sentiment surged to 82.6 in October--which is the highest level in five years--and Durable Orders (orders for products lasting at least three years) rose more than expected. Tempering this good news was a report from the International Monetary Fund (IMF), which said that the world economy will grow by 3.3% this year, the slowest since 2009. The IMF said that unless Europe and the U.S. address the financial threats to their respective economies, growth will continue to slow. So what does all of this mean for home loan rates? Remember that good economic news normally causes investors to move their money out of safer investments like Bonds--including Mortgage Bonds, which home loan rates are based on--and into riskier investments like Stocks to try and take advantage of gains.  However, renewed worries over the debt crisis in Europe (Spain in particular) will keep investors glued to the safe haven of the Bond markets for some time, benefiting home loan rates as a result. Additionally, the Fed's continued Mortgage Bond purchases (as part of their third round of Quantitative Easing or QE3) and tame wholesale inflation data have helped Bonds and home loan rates remain near record lows. 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: The Fiscal Cliff

	The United States' mounting debt has been a huge topic over the last year or so. But, as the election began to draw near, much of the debt talk was silenced, as politicians from both major parties decided to wait and see what the leadership will look like after the election. After all, any approach to the problem will be impacted by who controls Congress and which party is in the White House. When Congress raised the debt ceiling, they agreed on a deal that pushed the debt discussion back, thereby buying some time. But, in doing so, they established a fiscal cliff that will hit in January. That cliff consists of drastic spending cuts that most economists agree could throw the economy back into a recession next year, if Congress fails to avert the cliff. So, once the election is behind us, we can expect the debt challenge to shift back into focus rather quickly, as politicians attempt to avoid the cliff. And the discussions that ensue may have an impact on the markets.  If you ever have any questions about what's happening in the markets and how it is impacting home loan rates, please call or email me.

Hosting the Holidays: Easing Your To-Do List with Self-Service

	By Kirk Leins, Personal Chef and Food Writer, www.KirkLeins.com The upcoming holiday season undoubtedly means holiday parties and casual get-togethers. Obviously, you cannot throw a party without serving some type of food and beverage. What is important to realize, however, is that you don't have to do all of the serving yourself. Doing so makes things unbelievably hectic and ultimately can result in you not having a very good time. As the host, your time can be much better spent getting your guests to mingle. Just prior to your guests arriving, I suggest setting up a table where the majority of the food items can live for the entire evening. This way your guests have access to food from the second they show up. You should start by strategically placing a table of decent size where the majority of people will congregate. Cover the table with a tablecloth that coordinates with the colors of the holiday you are celebrating and find an appropriate centerpiece. After that, the only other items appearing on this table should be food items. Decorations such as candles may look nice, but can spell disaster. If you use them, be sure to place them somewhere that is safe. The same goes for beverages. All drinks should be served from an area that is separate from the food display. The question now becomes, what food items are you going to put on the table? What's nice is that the options here are nearly endless, and run the gamut in terms of tastes. Hot dishes are great for obvious reasons, but they do require a method for keeping the food warm. Instead, you may want to opt for items such as a cheese and fruit plate, an antipasto tray, a deli tray along with great bread and rolls, any salads, assorted olives, mixed nuts, and chips and dips. These dishes can be either prepped well in advance of the party, or purchased already made. Whatever the case, you can lay them out and then, for the most part, forget about them. The bottom line is that throwing a holiday party doesn't have to be a big deal. What is a big deal is that you use the holidays to connect with family and reach out to friends you haven't seen for a while. Instituting the self-service suggestion above will help you connect with those friends and make the holiday season memorable. Have a safe and happy upcoming holiday season!

Q&A: Leak Free?

	QUESTION: Is your home leak free? ANSWER: You can find out if your home is leak free by reading your water meter before and after a two-hour period when no water is being used. If the meter does not read exactly the same, there is a leak somewhere. And those links can add up more than you may think. For example, if your faucet drips at a steady 100 drops per minute, that's 330 gallons of water in a month...or nearly 4,000 gallons wasted per year. One of the main reasons for dripping faucets is worn-out washers, which can easily be replaced with little time and cost. Of course, once you make sure your faucets aren't leaking, you'll want to make sure they're being turned off completely (especially if you have young children in your house who may not turn the handles all the way). Another leak culprit is the toilet tank. Check for leaks by adding three drops of food coloring to the tank. If color appears in the bowl within 30 minutes, there's a leak. If you use this test, remember to flush right away to avoid stains. Replacement parts for toilet tanks are fairly inexpensive.

	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.