In this short clip, Patrick Bet-David, Michael Malice, Adam Sosnick and Tom Ellsworth react to the mortgage demand increase.
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Mortgage demand increase for the second Week in a row with the total application Volume Rising by six and a half percent Compared to the previous week according To Mortgage Bankers Association despite Mortgage rates being higher mortgage Applications to purchase a home increase By seven percent for the weekend Homeowners home buyers concerned rates Will continue to rise however Applications to refinance a home were 7 74 lower than a year ago it's a big Number the average contract rate For 30-year fixed mortgage with Conforming loan balances decreased to 6.71 from 6.79 that's not a big number But rates were large largely largely Higher for most of the week before Dropping sharply on Friday due to news Of Silicon Valley bank failure so is This like Tom just a small little Movement here is this like you know what Do you think this is yeah this is a blip And I dove into this because I saw the Headline and I'm like what the hell you Know and to find out what it is and this Was CNBC making a headline where the Really isn't one Um and I don't win this stuff Diana Olaf Was talking about and what happened was There is always buyers right on the edge Even in a bad Market there's a percent Of buyers that are right on the edge Yeah and when they saw the madness
Happening with svb and they hear you Know the week prior is what really drove It it really was an svb it was driven The week prior when everyone was trying To talk Powell you know buddy you don't Need to do 25 you need to do 50. and it Was Larry Summers on the weekend and all The weekend news shows Larry Summers Says he really needs to put a half a Point on this not just a quarter point People on the edge were reacting to that Saying well if we're gonna do it now we Better do it now take 6.71 otherwise It's going to be seven this wasn't the Market moving back to buy houses this is People on the edge Pat it's on a blip They jumped in they locked at 6.71 and They bought some houses and also there Was an increase in sale of newly built Homes in that last week which is Temporary because you know what that was If you're a home builder like Toll Brothers or Lanier Pat what can you Always do You can use part of the home price to Arbitrage the rate tell you what you go Get the rate and what I'll do is I'll Pay one point so instead of 6.75 you'll Get six and a quarter and so home Builders pushed a little blip on that Too but this is a blip this is not a Change in the mortgage Market according To everything that I dove into I I'm not particularly informed in this
Specific issue but the housing market Has been historically kind of boom and Bust uh I know Austin specifically uh The rates the for renting and for home Ownership went through the roof in the Last couple of years now they seem to Kind of if you look at Zillow which I Kind of do regularly all the home prices Are have an arrow going down so the Market is kind of correcting itself but Again the mortgages and banks are Obviously so extremely interconnected That if banks start failing this is Going to have some kind of cascading Effect I'm just wondering what the Mortgage brokers are telling their Potential clients right because in any Sale it comes down to what urgency and Scarcity right so hey you know the rate Just dropped they're not going to drop Anytime soon you see what Powell's doing Out there the rates are expected to go Up you're lucky if you get it at six and A half at this point that's a great Point I know I know hey you know we Can't go back to a year ago where you Could have got three and a half you Should have chose then now we're at six And a half it could be seven and a half Next year time to go time to go time to Go inflation around the corner I read it Was a blip and that's exactly if I was a Mortgage broker would I be saying to People we don't know where this is going
To go but it doesn't look good you've Been right on the edge here why don't You pull the trigger on the home let's Get you locked in yeah but you know if I'm that guy that was looking to buy a House a year ago and I missed the missed The rush and I could have gotten at Three and a half now you're trying to Sell me on six and a half yeah that's an Uncomfortable situation 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]
