The Valley View Newsletter - Issue 6

If you’re thinking of buying a home this year, you’re probably paying closer attention than normal to the housing market. And you’re getting your information from a variety of channels: the news, social media, your real estate agent, conversations with friends and loved ones, the list goes on and on. Most likely, home prices and mortgage rates are coming up a lot. Here are the top two questions you need to ask yourself as you make your decision, including the data that helps cut through the noise. 1. Where Do I Think Home Prices Are Heading? One reliable place you can turn to for information on home price forecasts is the Home Price Expectations Survey from Fannie Mae – a survey of over one hundred economists, real estate experts and investment and market strategists. According to the most recent release, the experts are projecting home prices will continue to rise at least through 2028 (see the graph). So, why does this matter to you? While the percent of appreciation may not be as high as it was in recent years, what’s important is this survey says we’ll see prices rise, not fall, for at least the next 5 years. 2. Where Do I Think Mortgage Rates Are Heading? Over the past year, mortgage rates spiked up in response to economic uncertainty, inflation, and more. But there’s an encouraging sign for the market and mortgage rates. Inflation is moderating, and here’s why this is such a big deal if you’re looking to buy a home. When inflation cools, mortgage rates generally fall in response. That’s exactly what we’ve seen in recent weeks. And now that the Federal Reserve has signaled they’re pausing their Federal Funds Rate increases and may even cut rates in 2024, experts are even more confident we’ll see mortgage rates come down. No one can say with absolute certainty where mortgage rates will go from here. But the recent decline and the latest decision from the Federal Reserve to stop their rate increases, signals there’s hope on the horizon. While we may see some volatility here and there, affordability should improve as rates continue to ease. Bottom Line: If you’re thinking about buying a home, you need to know what’s expected with home prices and mortgage rates. While no one can say for certain where they’ll go, making sure you have the latest information can help you make an informed decision. Connect with me so you can stay up to date on what’s happening!

How can you make New Year’s resolutions about your financial life that you’ll follow the entire year? Resolution 1: Start Small Start by having 1% taken out of your paycheck for your employer’s 401(k). Suppose you make $60,000 a year. That’s $50/month (or $25 per paycheck if you’re paid twice a month). You’ll barely notice that $25 is taken out for your retirement each paycheck. In a couple of months, bump that to 2%, or another $25 per paycheck, then 3%. Every time you get a raise or bonus, bump it again. You won’t notice the extra 1% deduction, but one day you’ll realize you’re saving 10% (or more) of your salary for retirement. You’ll be surprised how much you’ll have after a few years. Resolution 2: Get Organized By following these three easy steps, you’ll not only have a complete picture of your finances, insurance, taxes, and other parts of your financial life; you’ll also have the information you need to plan for the future with confidence. These steps are: follow the advice in the article, look at future milestones, and tackle one thing at a time. Follow them and you’ll feel more in control of your money than you’ve ever felt before. Resolution 3: Spend Intentionally One of the keys to financial happiness and security is aligning your finances with the things that are most important to you. But that doesn’t mean saying no to the fun stuff. It means saying yes to the things that are important to you. Yes to peace of mind. Yes to the future you want. It means thinking about your spending and having a good understanding of where your money goes. Resolution 4: Talk To Your Partner While managing money in a partnership can be challenging, and not always romantic, getting on the same financial page is crucial to maintaining a healthy, long-lasting relationship with each other and your finances. Resolution 5: Teach Your Children One of the most important things parents can do for their children is teach them healthy money habits early. Children start learning money habits from you by the age of three and have formed many of their attitudes about money by seven. Financial planners teach their children about earning, saving, spending, giving, and investing. They take their children to the grocery store, open savings accounts with them, and have open, age-appropriate discussions about money and finances. They teach them the value of delaying gratification by saving up for larger purchases. Source: Facet