In this short clip, Patrick Bet-David, Steven Crowder, Adam Sosnick and Vincent Oshan react to mortgage applications at 20 years low.
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Tom you saw some data on Data that came out with mortgages today With home prices today you mind getting Into that yeah there was a Roundup Article that was in the what I mean by Roundup in the Wall Street Journal today They were talking about housing market Momentum stalls this critical spring Season approaches and what they rounded Up into this correct was quantitative Look at all the elements that are there Right now for instance interest rates That had started going down in November Have now picked back up to 6.65 and some Of that the bonds that determine Mortgage interest rates are already Expecting at least a quarter point in About a week 16th 17th the FED goes out Yeah I think so along with and that's Also that's also a day where they Announce all the economic stats I think This is a stats release as well and Mortgage applications right now The lowest it's ever been in how long You want to take a yes how many years Mortgage applications lowest that They've been in 28 years holy right Now and according to this article yep And the article is just pulling out what What the journal is doing is they pulled Together all the stuff in one place and They said you know you've got Supply the New listings are down another 20 Year-over-year and you've got march to
June what they're worried about here is The stock market looks for All of the mortgage industry to have a Really good second quarter because March To June it's sort of like if you think Of Black Friday for electronics and Q4 Is really good for electronics and TVs And phones and all that second quarter Is always historically just a party if You're in the mortgage industry because 40 of the transactions of houses happen Right before school's out and right at Schools out April to June And the journal is pointing out that That's off another 40 percent and the Supply it says is stable but it's Sitting because there are experts in There that said in 17 years over the Last 17 years the buying consumer has Never been this demonstrably rate Sensitive that happened as a result of How many years of two to three percent Mortgages and they're getting their Heads around well it's up three times When does it go back down because for Most of their buying lifetime they've Had this artificial two and a half three Percent interest rate and so this Article today in the journal just really I was surprised to see the journal put It all together all the stats no Suppositions no Spin and just saying hey We're about to have a not fun Um March excuse me April to June which
Is normally party time in uh in housing And you know who was winning today Wall Street Journal is winning today I got to Tell you if if there is a paper I read Every day for the last year now it's Wall Street Journal they're telling the Story from a very independent standpoint There is not a like you almost don't Feel opinion and hate and anger it's Just here's what's going on here's what You got to look at this is what's going On in history it is if you're going to Trust specifically from they've always Had a very good reputation but Specifically right now people don't Trust anybody like where do I go to read They're crushing it right now yeah this Is not a story that's LED with CEO of Re Max says it's going to be fine just give Me a minute you know you don't have any Of that that you know what I'm saying Sort of Industry puff pieces no there's Nothing and I was I looked at it and It's what we've been saying that the Everybody thinking that five and a Quarter is going to be the top end for The Fed rate is wrong uh Larry Summers Over the weekend was actually openly Campaigning and telling the FED you're Behind the curve on this one you need to Put a half a point on the next rate Increase and then two more quarters You're behind the curve in other words He's saying Jay Powell you you need to
Do more on the interest rate to get Inflation under control than you're Doing right now and when you went to Quarter points and fourth quarter you Actually allowed inflation a chance to Reheat a little bit now whether that's All comes to pass but it was um kind of A dark a dark weekend because it Certainly doesn't look like rates are Going to be coming down now before you Know third quarter and that's what Everybody's saying even the Bulls and The Bears are all in agreement if he Raises them a half now he's probably Raising a quarter quarter on the next Two meetings we're Suddenly at five Seven five uh the Fed rate and that's Housing is not going to bounce back Until we get three drops now that's Looking like September November earliest So it may be a 24 recovery on uh housing Market or shall we say statistical Relief so that the market can however as People put their houses on the market or Go buy something rather than a second Half of 23. and how high does this go Right because the FED fund rate ran out Right now is four and a half give or Take and then I think the historical Long-term average is 4.6 and then you Know what repeating history or being a Student of History I'm always shocked to Find out that in the 80s that mortgage Rates were double digits yeah 12 15 20
What like those are credit card numbers Of what you used to get a mortgage for Right it's insane to me what was it your First year you bought a house by the way Uh the first year I bought a house was I Was 26 and I think I got a seven percent Mortgage and what year was that so 26 62 26 it was 88 yeah yeah it was 88. That would have been a great rate in the Late 80s seven and a half by the way I Remember talking to the guy that was Doing my mortgage and feeling like I Just locked in on a little dip he just Hooked you up and right now I mean Mortgage rates are six and a half Percent I'm just saying like as someone That is you know likes to keep their Money in cash and invest and rent and Kind of invest the difference I don't Even know when a good time to even think About buying right now is six and a half The bottom or are we gonna are we Trending towards double digits that's Insane to me and that's what the journal Was talking about is that there's Experts out there that are saying They're saying objectively objectively Not opinion Buyers in their mid-30s right now have Never seen interest rates like that and These are the most rate sensitive buyers That they've ever seen Yeah if you're a millennial and you're Looking to buy a house you know all
You're all you're used to is zero one Two three four like and all of a sudden It's six seven by the way Uncle Adam Talked to his friend Tom about six Points This is where we need to stay I I know this is not popular but this is What we need to stay you know we keep Talking about how much fake money was Made 128 economic months economic Expansion covet doesn't come that could Have gone another Euro too could have Been 150 months you know it's not you Take over that it's 150 months you're Keeping rates as whatever it was and People are just funding everything this Is where it needs to stay for a minute Okay the problem is going to happen Tom Is let's just say inflation does drop to Two percenters ago okay guess what let's Start lowering it again no no no pump The brakes if you really wanted to start Breathing a little bit you got to get Off of steroids and growth hormone for a Couple of years okay that's right we've Been on it for way too long so that part No One's Gonna know because who's going To replace Jerome Powell who who the Hell is going to look like you know how Last time we're having a conversation With Crowder and the question was so Susan stepped down right I was like well You know what the greatest story Susan Uh from YouTube
[Music] From YouTube just stepped down and Because she did this this this wrong Well the person that replaced her worse Is worse is what the fear is like hey Jack Dorsey stepping about time Jack Dorsey steps down from Twitter no bro You wanna Jack Dorsey to stay exactly The guy that replaced him is war so as Much as people are you know giving a Powell a hard time that he's pounding People on upstairs and I know you always Talk about his bedroom activity This is an inside joke for Tom Tom's got Very interesting The economy as a poor cheerleader up in Her bedroom and that Jerome Powell is Going to keep pounding that cheerleader Until her parents come home and parents Coming home two percent interest rates So but the new CEO of of uh YouTube is Neil Mohan and you're saying that he's Almost saying that I'm not saying they Are saying I'm not the question is Sometimes you have to you know you have To worry who's like for example okay we Gotta get rid of Putin right who who's Replacing him yeah right we got to get Rid of yeah okay cool yeah who's Replacing him so that is just as much of A concern as it is at least you have Enough data to know how this person is Going to be right the markets don't like Uncertainty so just get the guy in until
This phase is over because you switch Mid mid mid mid game people will be like I got to figure out the new guy I Actually think Powell's doing an okay Job I was just going to ask I don't know If I'm gonna sit here Goat or he's doing I agree I actually Think he is if you look at him compared To some of the other guys I think he's Actually doing an okay job he's doing Way better than grandma Then Janet Yellen yes yeah I mean yeah You're not even a question uh uh uh but But yeah so he so here's a question for You have you ever had any interactions With Michael burry have you ever done Anything no no why is he so low-key he's On Twitter one day he shuts it down Comes back again tweets closes it again Doesn't do interviews doesn't talk to People strong Insight very interesting He's been right one too many times What do you know about Michael burry Well so after the housing crisis he made A speech excoriating Congress saying That they all knew this was coming it's All their fault then he started being Investigated by the feds and tax and IRS So ever since that experience after the Housing crisis I don't think he is one To be on the public stage but he is he He knows what's going on with the code With vaccines because he's intimated he Uh that he's investing in some of these
Uh plays on that in stock stock Individual basis like buying blood Thinning companies and shorting other Companies so he's already playing the Covet vaccine stuff He to me he's a very interesting guy to Watch closely I see him as a stud I Think he's got courage I think he's Tough Um but I hope you know I was I I wish he Was a little bit more vocal yeah I think It would be great if he came out and Gave his thesis on what's going on with Covert vaccine dude I would love nothing More than to have a two-hour Conversation with this guy just to sit Down and say Michael what do we Expecting what's going on and by the way I also think he's a crusade guy meaning I think he's a True Believer I don't Think it's just about money form I don't Think he's just like hey he wants to get Rich and you know go partying you know Thailand and do whatever some of these Guys you know I think that's a guy that Really cares about what's going on he Has concerns he has good Insight I think He needs to be more vocal so if you know Michael burry if anybody knows Michael Burr you're a friend of his or your Close colleague of his And kind of let him know I'd like to Talk but guess what I'm trying to say You know so if you like this clip and
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