“American’s Can’t Afford To Buy a House Today!”- Mortgage Debate With Barry Habib

In this short clip, Patrick Bet-David, Barry Habib, Adam Sosnick, Tom Ellsworth talk about mortgage rates and how they will affect Americans.

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You're saying that mortgage rates are Going to come down they have to come Down because inflation Barry some people Will say you're talking like a mortgage Broker hell of a good one you were with GMAC national sales director the last Time you stopped doing loans was 07 You're like one of the greatest uh Lo's That we've had in the market so a lot of Time when Realtors or loan officers say That you're in this space the the Counter argument to that would be okay We we saw what happened when we made Money pretty much cheap for 12 years and Then we try to get off of it you know it Didn't work for us to do that and right Now uh uh some will still say a lot of Properties are overvalued the amount of Uh how much home values have increased Compared to income has increased it Doesn't match if the saving doesn't Increase at the so people can't afford To buy a house at today's price I have a Chart for that to show you that it's It's a little bit of an interesting Scenario it's not that right now the Affordability is worse but the Affordability will improve though Patrick there's how how Okay a couple of Things first on this isn't isn't when You say affordability forget about the Charts for a second isn't it when you Say affordability will improve this year Okay so you know what that means to me

That's a very nice way of saying you're About to lose equity in your home your Property value is going to go down I Think that actually we probably will see About three percent Nationwide Appreciation this year because the level Of inventory is just so tight we saw Already in January when rates dropped to About six percent that where there are Multiple offers around the country I'm Not seeing that though and I'll tell you In January we saw it but not slowed down But I'm going to tell you from a buyer's Standpoint I'm not seeing that from a Buyer's standpoint I'm not seeing that I'm seeing from the buyer's standpoint Minus five hundred thousand minus one Million minus 200 000. they lowered by Another 299 000 they lowered about 300 000. no well I mean I don't know I mean Always will be specific incidences Obviously you're right on the specific Instances but if you go by the Numbers Let's just say from the fhfa or from Case Schiller the seasonally adjusted Number members show that real estate Values from the very Peak after 121 Consecutive month rise are down one Percent from fhfa 2.7 from case those Are the numbers from kclr those are the Best two sources you know what a seller Will say a seller will say Barry I hope You're right but how come I'm not Getting any offers of qualified buyers

Today because I hope you're right They're hibernating with seven percent Rates but that's why this is so Important but you can we for you to say Guys let's lower the rate it's all going To work itself out that's the problem The problem isn't for the Powell is Sitting there saying I I get what you're Saying Barry I understand what you're Saying a lot of loan officers are Getting crushed right now a lot of Realtors are getting crushed right now I Get it but I can't do this right now Controlled mortgage rates Pat he does Not but mortgage rates are going to Trade and follow inflation long-term Investor the short end of the curve a Hundred percent all the short-term will Follow that but the long end of the Curve won't you so so if that's fair but That's kind of like me my kid saying That trust me I'm going to read 100 Pages this week let me play iPad on Monday I'm telling you I'm going to read 100 Pages by the end of the week because I'm going to read it just let me play IPad online I'm like no no that's not How life works first read 100 Pages then I'll let you play iPad right first let's Lower inflation then let's lower that's Why it's so important because inflation On a year-over-year basis it has been Stubborn because the comparisons from Shelter have propped it up but also the

Comparisons from where we were a year Ago were relatively high if we take a Look the date that you should be Circling is May 10th on your calendar That's where we get the inflation data That begins a string of information May 10th May 10th okay a string of inflation Data that will be lower replacing higher Inflation data from the previous year it Will bring the year over year numbers Down and we'll get the shelter Barry Trust me everybody wants you to be right I'm not sitting here saying I don't want You to be right I want you to be right But the the the market is seeing other Things so the market right now when it Comes down to buying car the National Car payment right now was in 1911 or 9 20. just two years ago it was five Freaking 75. how the hell is the average American able to go to that so rates on A million dollar loan two years ago the Payment was nothing today on a million Dollar loan at the race that I'm getting If I got a 750 credit score if I can Show everything it's nearly 50 it's just Higher these are just income is not Increasing no no income income is by 50 No but it doesn't have to because you Don't use all of your income to qualify For it so a couple of points income According to ADP went up 7.2 percent Year over year car payment went up Nearly a hundred percent you're 100

Right average is 500 guys I agree with You I'm not disagreeing with you I'm not Disagreeing with you it is less Affordable however in an equivalent State of affordability you had 20 Appreciation I'm saying three percent Appreciation and predominantly due Because you have such unbelievably Record low inventory this 578 000 units For sale in this country I tell you what Here's what I'm going to tell you I You're so good I'm going to do my next Refinance with you okay I don't do loans This one you may want to do it's going To be a decent one but no so you know Are you getting nominated for another Crystal ball award how does this work Well look well let's see what happens Right with rates so nobody knows for Sure of course could I be wrong of Course I could be wrong however to me When I look at something like this and I Say okay it appears that inflation Should be coming down historically Mortgage rates or all long rates always Following what I hope what I hope uh Happens Uh with Jerome Powell I hope he doesn't Break okay that's my my fear I hope he Doesn't break you know what I said today On the call when all these guys are Saying about Patrick but Patrick but Patrick Said listen is it fair to say that a

Crisis happened last week to the economy Yeah it did how the hell is the market Up on Monday Tell me when in your life something bad Happened in your life and you got Rewarded the next day I I don't do you Realize how That makes no sense there there needs to Be re if I don't go to school like it's Kind of like me going to school and I Skipped two weeks straight I don't even Go to class I don't know what my Homework is hey Miss Taylor how are Things well Patrick great job because Your great one from 72 to 91 percent how The hell did my grade go up I didn't Come to school last two weeks that's What's going on right now this is very This is this is where the average person Watches the market and says I got to Tell you man this is exactly why I want To have nothing to do with Finance I'm Gonna go freaking be a construction Worker that's I'm gonna go be a general Guy I'm gonna go be a plumber forget This stuff here so you mean to tell me The 16 biggest bank in America goes out Of business and on Monday rather than People panicking they say bye yeah that Makes a lot of sense to me 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


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