As this year’s super El Niño climate pattern continues to affect global temperatures, climate change is becoming a common topic with homeowners — especially those taking a long-term view of where they settle. This is because some areas may eventually see higher insurance rates and falling home values if climate change adversely affects them. Budget-conscious consumers concerned with current everyday pricing may want to scroll down to the article with tips for reducing grocery bills.

Home Financing

Reasons To Buy When Rates Seem High

Anyone who’s considering buying a home may be wondering if there’s an ideal time to do so. Although it may seem sensible to wait for lower interest rates, this may not be the best strategy. Rates are never predictable, and they’ve been much higher in years past.

Here are some other reasons why buying now can be the right decision.

The fun starts immediately. New homeowners often realize how going from a rental to a home provided a major lifestyle upgrade in just days. They enjoyed meeting new neighbors, entertaining friends and family, and even improving their pets’ lifestyles.

Postponing equity could be costly. Most homeowners realize that owning a home benefits them in a variety of ways, including the equity that builds every year. Equity increases as the mortgage is repaid, and when property values rise.

Dream homes don’t wait. Buyers determined to move to an established neighborhood, or see a FOR SALE sign in front of a long-coveted bungalow or colonial, can miss out on a one-time opportunity by waiting for rates to drop.

Property price increases are slowing. The price spikes we saw in previous years are gone. Today’s sellers are taking a more realistic view of their home’s current value and pricing them accordingly. Builders may be offering temporary rate buydowns (ask your local APM loan advisor if you don’t know what they are) and price reductions in select markets.

Source: nar.realtor

Insurance

Yes, You Can Insure That

We’re all aware that we need insurance for our vehicles and home. But there are plenty of niche policies available that may actually be worth a look, depending on your lifestyle and future plans.

Wedding insurance protects against loss if the ceremony is cancelled or postponed due to natural disaster or personal tragedy. Some policies also provide coverage for weddings held outdoors (what if it rains or snows?), guest injuries, and honeymoon cancellations.

Bed bug insurance is something to consider if you travel frequently and bring some unwelcome house guests back. It can cost thousands to have them exterminated. You may be able to add this coverage to your existing homeowners’ or renters’ policy.

Lottery insurance could be helpful if you own a business and your employees have a lottery pool. If their numbers come in, they could all resign and leave you on your own. This coverage helps you manage while you hire new staff. (You may not need coverage if you’re in the lottery pool as well.)

Exotic pet insurance is often described as livestock insurance. People who share their home with pigs, ducks, chickens, or other animals who usually live outdoors are candidates.

Alien abduction insurance really does exist, but claiming is a challenge. This is because anyone claiming to be abducted is required to provide proof, and aliens aren’t big on documenting their interactions with Earthlings.

This article is provided for your information. If you have any questions about niche insurance policies that may provide you with peace of mind, speak to your insurance provider.

Source: policygenius.com

In the News

How Long-Term Climate Change May Affect Home Prices

Homeowners at risk of natural disasters like hurricanes and wildfires are already seeing changes when it’s time to renew their homeowner’s insurance policy. Unfortunately, climate change may also eventually affect their homes’ value.

A study by researchers at First Street Foundation looked at the effects of climate change on regional real estate during the next decades. As property values are predicted to decline across some areas of the country by almost $1.5 trillion in total, other properties may increase in value to the tune of $244 billion.

First Street Foundation’s report also found that by 2055, climate-driven weather is expected to hike homeowners’ insurance premiums nationwide by an average of 29.4%. At the same time, 55 million Americans are expected to leave areas prone to extreme heat, wildfires and flooding between now and 2055. This exodus is described as “climate abandonment.” It’s estimated that more than 5 million will make their move this year or have already done so.

This report suggests that the three biggest Sun Belt states — California, Florida and Texas — will eventually start losing residents to other, cooler states. They’ve already taken on more than 40% of the country’s $2.8 billion in natural disaster costs since 1980. (Conversely, Florida and Texas are still welcoming newcomers this year.)

Source: cbsnews.com

Credit and Consumer Finance

More Consumers Expect Lasting Inflation

The University of Michigan’s latest survey found that consumer sentiment fell in August, with more respondents expecting inflation to stick around.

Inflation expectations for the coming 12 months rose to 4.3% in mid-August, up from 4.2% in July. This is actually higher than the current level of consumer prices, now at 3.4% annually, but people are growing weary of five years of rising costs.

The survey’s Index of Consumer Expectations reflected the biggest loss. This month’s index number came in at 50.6, falling from July’s 55.4 index number. The prevailing mood is also affecting consumer shopping habits, with a 0.6% decline in retail sales recorded for July.

Expectations for income growth are also falling. Only 8% expect their income growth to exceed inflation in the year ahead, down from 18% in December 2024.

If you’re concerned about your current or future cash flow, contact your local APM loan advisor so they can have an informal chat about possible options. They can also provide a referral to a Certified Financial Planner®.

Source: usnews.com

Did You Know?

How To Reduce Wasted Groceries (and Wasted Money)

Here’s a number that may surprise you: over one-third of available food in the United States is never eaten. Reasons for this waste begin at harvest, proceed to the retail sector and end in consumers’ kitchens. 

While food waste affects farm, business and consumer budgets, the amount of uneaten food purchased by consumers adds up to thousands annually. The last federally provided estimate dates back to 2010, when USDA researchers estimated an annual food waste loss of $1,500 per family of four. Inflation has driven this number considerably higher since then. 

Still, it’s a number that can be reduced by reviewing your food shopping and storage habits. Take a look at the following strategies. 

Before you go shopping:

• Make a list of items with the upcoming week’s meals in mind, so you’ll only buy what you plan to use.

• Check your refrigerator, freezer, and pantry first to avoid buying food you already have.

• Make a list each week of what needs to be used up and plan upcoming meals around it.

• Make notes of how many meals you’ll make with each item. For example: “enough salad greens for two lunches”. 

Keep track of meals and their ingredients that you and/or your household enjoy, so they can be prepared often. This also may reduce your reliance on food delivery services and take-out meals. 

When you’re unpacking your groceries:

• The lower shelves are the coldest part of the fridge. Store meat, poultry, and fish here. 

• Veggies prone to wilting should go in the high humidity drawer of the fridge.

• Potatoes, eggplant, winter squash, onions, and garlic, should be stored in a cool, dry, dark, and well-ventilated place.

• Most fruits, as well as mushrooms and peppers, should go in the low humidity drawer of the fridge.

• Some fruits (such as bananas, apples, pears, stone fruits, and avocados) actually release ethylene gas as they ripen. This may encourage neighboring fruits to ripen as well.

• Freeze food such as bread, sliced fruit, meat, or leftovers that you know won’t be eaten in time. Label with the contents and dates. 

If you’d like to download a colorful infographic to post on your fridge, click here to review the USDA’s “Easy Steps to Prevent Food Waste” materials.

Source: usda.gov