"Housing Hurricane Coming" - 8% Interest Rates Threaten To COLLAPSE U.S. Housing Market

mortgage rates continue to climb to 7.7 7.17% mortgage rates climbed this week again exasperating home affordability crises that is stifling the housing market Freddy Max latest primary mortgage Market survey released Thursday showed that the average rate on Benchmark 30-year fixed mortgage jumped to 7.17 this week the average rate on a 30-year loan uh was 6.43 a year ago so it's gone from 6.43 year ago to 7.17 the average on a 15E is 6 Rose to 6.44 from 6.39 last week and a year ago the 15E was only 5.71 and aside from this story Florida housing bubble uh burst prices fall and Supply sore Florida housing market experienced a dramatic shift as Supply surges and prices stagnate with data from red fin revealing that six out of 10 Metro areas in the state have seen significant increases in homes for sale as much as a 51% jump in Cape Coral 48% in Northport Sarasota sellers in Florida are slashing prices at a higher rate than elsewhere in us with 48% listings in North Sarasota experiencing price Cuts while 44% in Tampa 44% in Cape Coral affordability challenges are exasperated by the insurance crisis impacting 70% of Florida homeowners and causing delays in deals while Texas is also experiencing similar Market shifts with McAllen and Dallas seeing notable increases in Supply in Houston of San Antonio witnessing significant price Cuts Tom well what we are seeing is that is is like a um you know when winds blow in the wrong directions and they gather together it makes a hurricane and we are seeing I believe the hurricane starting to form in the American housing affordability crisis uh there's a couple things going on here um today actually uh the 7.17 is now like 7.45 so we are sitting on 7 and 1.5% 30-year mortgages for people with good credit in the 700s and a reasonable house not multi million dollar houses that's what they're going to be facing right now it's number one number two you've got Supply brings down prices here's the two things to look at Austin was overbuilt they were building houses at a record rate in um Austin and Tow houses at a record rate and um a high-end apartments at a record rate in Austin and the supply built up and then Tesla failed to hire as many people as they thought and laid off people Dell did not expand the way they thought and if you look at Austin Austin didn't get the job influx had a lot of people moving there and all of the sudden it's plummeting it was down 22% over the last 6 months so Austin is suddenly becoming more affordable now you come in Florida why are these people putting their houses for sale well something came out yesterday pbd credit card delinquency rates the top three states for credit card delinquency that are over 12% delinquency and it's spiking California Texas and Florida so it's sort of interesting and the the delinquency rates are highest in Northern Florida so these areas and now that they're talking about is actually Gul Coast uh and Northern Florida they're seeing suddenly houses are coming onto the market but the housing comes on the market you need someone to buy it how do you qualify to buy it if the interest rates are higher the only way you can afford it the price has to come down so if I'm in one of those markets and I'm desperate to get my house sold so I can get some equity in my pocket make some money on that house cuz the housing prices are up I have to lower my price to meet the buyers because the buyers at 7 half% interest rate can only qualify for houses that are so much of a price so supply and demand is coming together and I believe we've got pinched consumers now trying to sell their houses putting them on the market and to meet the buyer qualification status they have to drop the prices we've seen it in Austin now we're seeing it in areas of Florida and I you know what I can't make a prediction about the wider United States South Florida here it's still very stable there's a lot of people down here and a lot of money down here but we are starting to see it and I appreciate having these conversations on pbd podcast because obviously it's political season everyone's focused on Trump everyone's focused on Biden we'll see what happens with the RFK but I continue to argue that most likely the most important person in America for your pocketbook is Jerome pal so he's the chairman of the FED as the FED moves the country moves economically um if you want want to know what's going on with mortgages why are they at this rate you have to focus on what the FED fund rate is that's currently sitting at 5.5% that's what the commercial Banks that's how much they be Char they're charged from the FED to borrow money overnight there it is right there five and five and a third essentially um five and a half is where you round up to but the the prime rate which customers have to pay to borrow money from the banks is always basically 3% above of the FED fund rate so the prime rate is sitting at 8 and a half so if you want the correlation between the mortgages and the prime rate it's basically right there at 7 and a quar 7 and a half to what the prime rate is from the banks at 8 and a half Rob go on the website that shows uh uh a mortgage rates right now that matches it with your credit score just go on that that's the best way to do it go ahead Tom finish your thought while he's finding that yeah what what 's talking about for a typical you person if you're just casually following the news just listen to what the Fed rate is from Jerome Powell and add two that usually is right around the Zone where the mortgages are going to be for you uh you could just go to Google and go 30-year mortgage today rob it probably pops up to that chart Pat's talking about that's with good credit though rightor mortgage calculator is what we're look Zoom a little bit Rob go to the right so if you look at that $300,000 Florida at a 700 to 719 score a 30-year fix to 7.9% yeah basically do go go go a level below 700 go one below 700 right right whatever the next one is yeah 680 6.99 8% now go to California real quick just just move that to California instead of Florida what's VA P what's 30y year fixed VA that's Meep Tom that's yes that's 7.1 you get so you get a 1% discount California the same go to Texas just to see if there's anything different with Texas or it's about the same yeah the VA goes up but 30 year stays about the same yeah that's your number 8% And1 trillion in credit card debt go to the best possible credit score is this and is this go to the best possible situation you're still s and half so here's my question this the number for the average guy and since I've been here how long 800 yeah we got about a third of a point this week how long have I been how long have I remember I've been it's the only question you asked for your first year here is my two-year Mark at Value tment I remember sitting here I remember out there and you're like Vinnie come in here and I was like where do I sit you're like sit right here and I was nervous and one of the first things in my mind I was like when is it going to be cool to buy a house okay now I I get it I understand is this ever going to drop down to a normal say 5% nor what's normal yes but it's going to be going take time it's going to be anywhere between 12 to 24 months you think that's soon pbd I hope it doesn't happen that soon but I think it's 12 to 24 months I will say this to you though I think so when's the next R trap going to be let's go to October November correct probably one September October that's what we're talking now so let's just say they go September October is the next one mm so guess what the summer is probably a good time to buy something down here August September you close August right around that area it's not a bad time to buy because people gradually are sitting there the people that have been wanting to sell for a long time now they're sitting there saying I can't wait anymore babe cuz it doesn't look like rates are going any lower you saw What's happen right now with what Po Po's about to speak today right to make some announcements correct fed meets today and we'll also announce economic statistics to see what's going on with uh yeah so we're going to get all that uh update coming in today go ahead Adam the obviously one thing you can do is if you do purchase a house today the refi Market in 122 24 months we'll be sitting there for you all right great you're at 7 and a half today rate dropped now you're at 5 and a half bing bing bing you're going to have to pay some money for that whatever the second thing the biggest contentiousness that's going on out there is between the Boomers and the Millennials cuz the Boomer boers Tom's people I'm the last of the Boomers like by like four months go easy on me you're a boomer I'm the oldest Millennial you're the youngest Boomer that's why we love each other the the boomers are not selling they're holding on to their houses typically Boomers what they've done or older people when they retire they downsize all right I'm 65 I'm 70 I retire the kids are out of the house they come here yeah they come to Florida bingo bango they sell their house they have a four-bedroom in Michigan whatever it is they move to Florida they get a little two-bedroom condo they're on the beach enjoy your life now with interest rates and the market and Supply demand they're not selling so the market for Millennials or gen Z were like I want to buy a house that's part of the American dream I've been sold that dream forever there's limited inventory so for the VIN o shanas of the world they're like when am I when am I going to buy a house there's just not a lot of Supply do Vin OAS sound like that and this generation was given something to modify their decisions in retirement called Airbnb that has had a massive effect because they are airbn being the Philadelphia or the New York house while they're down here and they probably had already paid off their mortgage up there and they're making a few bucks on there and then they're down here renting and so Mom and Dad are kind of delaying when they would usually get that equity in their pocket and drop it into their retirement account so we announced the Manet contest to come have dinner with us at casad Deangelo and go have dinner Rob go to the leaders bulletin folks if you want to see the leaders bulletin just go to man.com and all the way at the top you'll see a leader bulletin click on it the video explains how to compete it's whoever mans the most both as experts influencers and those who ask others as a user you can compete on this R you can stay on that if you want just stay on that oh you have the categories of where they are but but I want to see how many man next people are doing and then we'll go to that so if right now if you look at this new experts on man lightweight if you look at it zoom in Rob Tulsi gabard has officially complet 72 mans that she has responded to by the way on man second place so far is Brandon Davis then it's Santino Tani John Ray is competing but he's fourth place and he got the rest of the folks go even even Ryan Garcia's at seventh place by the way responding and by the way I think he's responded to every single man he's gotten any responds in audio so it's not like he responds uh uh Rob go to the other category for middleweight if you're look at middleweight Fernando is still first place at 46 this is people that pre-announcing the contest they were on here from April 16th he's done 46 questions he's responded to he's first place he'd be invited to the dinner and his Pat Tomo third place look at the ne Kell Kelly Dame Dash is even on there at sixth place go to the last category heavyweight first place is Dustin not even close 138 Calvin 77 Chris CUO third place and then you got everybody else now Rob go to home team go to home team who's dominating okay dominating Vincent osana 281 thank you everybody I love you Vinnie Vinnie Vinnie then it's Tom 204 Adam 75 we're trying to catch but I'll tell you guys here what's going on here in a minute with Vinnie go down to the bottom with the people asking most questions this is how you use maneka slowly but surely becoming the most uh a popular networking app because 95% of the time the people respond to you you want an answer back pay for it you want to be waiting for three months DM somebody on Instagram LinkedIn Twitter if you're lucky for by the way the number of people getting back to you if you DM them is less than 3% on Sam is 1% Mana is 91 to 95% look at the people asking the most questions show that real quick Rob so first place is who zoom in a little bit Rob if you could for the uh Terrell Hall 76 Eddie goser 71 questions he's asked other Manors Eric link 67 very competitive by the way here now go to the other side for people that have been using man pre-april DUS is asking questions Azie second place one so so so far it hasn't even been two weeks Janette and top three they're all above a 100 Janette Laos who comes to all the lives that we do John Ray okay so here's what I want to do Rob if you can go to all the QR codes how many of you watching this be honest who here loves Vinnie okay who here loves Vinnie if you love Vinnie today is Vinnie's birthday good man good okay tomorrow is birthday but today's Mario and tomorrow we're not doing a a podcast tomorrow so so listen today tomorrow if you love Vinnie you want to wish him happy birthday go on here manck with him send him some love wish him a happy birthday I'd like to see him get 200 plus mans today to cross 2,000 I'd like to see him get that send him some love at the same time you can man Adam myself or Tom and FYI for those of you guys that haven't yet started competing download the app start menting today right now for the end of today Rob can you go to the flyer showing who the top people are right now we're going to give away Bel belts by the way really the lightweight champion would have been Tulsi if it's today t Okay the middleweight champion would be Fernando if it ended today heavyweight would be Dustin the home team would be Vinnie for new users it would be Terell and for existing users it'd be Dustin have two belts he'd be having two listen we're going to give it to him at casad dangelo everybody at first place will be at the main table anyways so there's a QR code at the top downloaded so if you like this clip and you want to watch another one click right here and if you want to watch the entire podcast click right here [Music]

Channel: Valuetainment Short Clips

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Keywords: Entrepreneur, Entrepreneurs, Entrepreneurship, Entrepreneur Motivation, Entrepreneur Advice, Startup Entrepreneurs, valuetainment, patrick bet david, Valuetainment Media, Patrick Bet-David Valuetainment, pbd podcast, economy, money, news, politics, mortgage rates, mortgage interest rates, how much can i afford, home buying tips, buying vs renting, real estate finance, first time home buyer, the rate update, bidenomics, joe biden, bidenomics latest, inflation, joe biden economy

Id: Siz5s7xNGbU

Length: 14min 4sec (844 seconds)

Published: Fri May 03 2024