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Speaker 1: This episode is brought to you by P and C Bank.

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Speaker 1: A lot of people think podcasts about work are boring,

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Speaker 1: It might seem boring to safe plan and make calculated

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Speaker 1: what helps you live or more happily fulfilled life. P

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Speaker 1: the PNC Financial Service Group, Inc. P and C Bank

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Speaker 1: National Association Member FDIC erness What's Up? You ever walk

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Speaker 1: It's not just about payments, it's about giving you time

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Speaker 1: pushing your vision forward.

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Speaker 2: Matt, I'll start with you said we haven't we haven't

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Speaker 2: had this conversation a long time. We've been talking about stocks,

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Speaker 2: and I think it's good timing because they saying that

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Speaker 2: we're about to enter into a recession. Twenty five percent

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Speaker 2: chance Goldman Sex I think said that there is a

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Speaker 2: chance of a recession. So stock market has crashed relatively,

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Speaker 2: but real estate is still you know, holding on right,

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Speaker 2: but that it's a domino effect usually, so are we

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Speaker 2: going to see a real estate correction happen in the

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Speaker 2: residential real estate market? Over the next twelve months in

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Speaker 2: your opinion.

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Speaker 3: No, no, And I think I've said this probably one

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Speaker 3: hundred times over the past two years. I do not

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Speaker 3: see a crash happening. We have already been in the

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Speaker 3: midst of a correction over the past eighteen months since

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Speaker 3: interest rates have gone up. You know, home prices are

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Speaker 3: not appreciating that twenty to thirty percent as they were

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Speaker 3: during the pandemic years, but appreciation is still appreciation. If

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Speaker 3: you look at the year over year numbers, home equity

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Speaker 3: and homes have appreciated. You know, right now you have

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Speaker 3: about eleven point five trillion dollars and tappable home equity

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Speaker 3: right now in America, and that's a new high. Right now,

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Speaker 3: there's thirty two million mortgage holders who can access at

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Speaker 3: least one hundred k in equity right now. So the

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Speaker 3: market has still the housing market has been doing a

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Speaker 3: little bit more than just holding on. I think it's

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Speaker 3: still going strong. You know, year over year is up

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Speaker 3: over five percent nationwide. And if you look at historically

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Speaker 3: over the past sixty five years, homes have appreciated on

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Speaker 3: average about three and a half to four percent. So

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Speaker 3: even if you look at year over year with home

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Speaker 3: appreciation is still doing better than what is averaged over

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Speaker 3: the last you know, sixty five years. So real estate

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Speaker 3: is one of those things.

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Speaker 4: It goes with the market is ebbs and flows to it.

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Speaker 3: But as long as you buy right, you're going to

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Speaker 3: put yourself in a good position to win.

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Speaker 1: So the wind has to be built in. Well, I'm

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Speaker 1: gonna come to you because Matt, that's a pretty interesting

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Speaker 1: stitsm that thirty two million people can actually apply for

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Speaker 1: mortgage of that amount. But well as your originating mortgage

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Speaker 1: is how big or what's the delineation between saying all right,

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Speaker 1: we're gonna wait for mortgage rates to come down, or

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Speaker 1: we're going to act now. Right at seven and a

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Speaker 1: half percent for a thirty year fixed I mean, yes,

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Speaker 1: perspective is key. That's high for this generation. For other

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Speaker 1: generations it's not. But as we see the market is

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Speaker 1: pulling back, interest rate cuts sounded like they're going to

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Speaker 1: be coming. How do you prepare people to say, yes,

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Speaker 1: we're going to pull the trigger here and maybe refinanced later,

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Speaker 1: or we grab here because it could go higher. We

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Speaker 1: don't really understand, We don't really know where the market's going.

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Speaker 5: My philosophy on this is more or less stay ready,

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Speaker 5: so you don't have to get ready. It's always those

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Speaker 5: when you're an investor, if it already happened, is too late.

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Speaker 5: I think Ian said that right, you have to prepare

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Speaker 5: and see this coming. So right now, application, as far

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Speaker 5: as I'm seeing personally, they're already increasing because people are

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Speaker 5: hearing the word on the street that because of the

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Speaker 5: market performing negatively, it is causing interest rates to go down.

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Speaker 5: So those people that have been sitting on the sidelines

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Speaker 5: are now effectively jumping in. But because of that, this

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Speaker 5: is what we had going on in the pandemic. When

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Speaker 5: people jump in because the rates are low, we do

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Speaker 5: have supply issues. So how many people are actually going

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Speaker 5: to be able to take advantage of this little blip

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Speaker 5: in the rates, whether it be permanent or not, because

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Speaker 5: everybody needs some type of housing over their head. But

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Speaker 5: I feel like the past couple of years, while rates

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Speaker 5: have been high, it's been used as more of a

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Speaker 5: reason to not get into the market. So application volumes

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Speaker 5: are up. I think that you know, week over week,

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Speaker 5: application volumes are reported through Wednesday, so next Thursday we'll

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Speaker 5: hear about the last seven days. I think we're going

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Speaker 5: to see those applications going up and people realizing, Ooh,

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Speaker 5: I might have already missed the boat because they're down

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Speaker 5: a little bit and pulling the trigger on those homes

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Speaker 5: they otherwise wouldn't have prior to the last couple of days.

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Speaker 4: Yeah, let me add to that real quick, MOE.

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Speaker 3: Right now, the market the mortgage market rate for conventional

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Speaker 3: mortgage ended today at six point three seven five percent.

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Speaker 3: That's if you bind a prime at residents single family

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Speaker 3: home seven sixty seven.

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Speaker 4: Eighty plus credit scores. Right.

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Speaker 3: But once we start seeing these FED rate cuts, which

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Speaker 3: we all believe is going to start happening in September.

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Speaker 3: Even though the Feds lowering the FED funds doesn't directly

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Speaker 3: impact mortgage rates, I firmly believe we're going to start

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Speaker 3: seeing more traction of interest rates going down as well.

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Speaker 3: So once we start seeing rates in that five range,

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Speaker 3: there's going to be a whole little buyers that's going

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Speaker 3: to hit the market. Even with the Mooleman recession coming,

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Speaker 3: you're still going to have a slow buyers that's on

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Speaker 3: the slot sidelines right now that can't afford the buy

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Speaker 3: but they've just been waiting and waiting for a moment

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Speaker 3: like this. So for those of you who have been

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Speaker 3: trying to kind of like time the market and play

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Speaker 3: like double dutch, you got one foot in, one foot

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Speaker 3: out type shit, like it's about to be over for you,

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Speaker 3: because I personally believe home price is going to a

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Speaker 3: skyrocket at that point once all these market me personally.

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Speaker 5: Buying demand, your absolutely marketing.

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Speaker 3: The demand is still there, right, It's still there even

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Speaker 3: with rate seven eight percent. Now, once we start seeing

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Speaker 3: five and a half low fives on a thirty year mortgage.

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Speaker 4: Forget about it. Priced out?

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Speaker 3: Yeah, people gonna get priced out, Like look at the

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Speaker 3: tappable equity right, Look how many people have equity right now?

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Speaker 4: So you're going to see more inventory right now?

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Speaker 3: Inventory is at four point one months, right, that's still

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Speaker 3: technically a seller's market. Anything above six months of inventory

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Speaker 3: is a bias market, right, So.

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Speaker 4: You're going to see some inventory.

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Speaker 3: Are people who got all this equity now they want

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Speaker 3: they have an opportunity now to trade up or downside

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Speaker 3: because the rates are more favorable. It's not eight percent,

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Speaker 3: it's you know what I'm saying, five percent, So they're

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Speaker 3: gonna put that on the market. But it's still going

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Speaker 3: to be over for a lot of people. They're going

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Speaker 3: to get priced out, and there's nothing you can do

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Speaker 3: about it.

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Speaker 6: An illegal alien from Guatemala charged with raping a child

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Speaker 6: in Massachusetts. An MS thirteen gang member from Al Salvador

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Speaker 6: accused of murdering a Texas man of Venezuelan charged with

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Speaker 6: filming and selling child pornography in Michigan. These are just

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Speaker 6: some of the heinous migrant criminals caught because of President

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Speaker 6: Donald J. Trump's leadership. I'm Christy nom the United States

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Speaker 6: Secretary of Homeland Security. Under President Trump, attempted illegal border

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Speaker 6: crossings are at the lowest levels ever recorded, and over

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Speaker 6: one hundred thousand illegal aliens have been arrested. If you

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Speaker 6: are here illegally, your next you will be fined nearly

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Speaker 6: one thousand dollars a day, imprisoned, and deported. You will

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Speaker 6: never return. But if you register using our CBP home

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Speaker 6: app and leave now, you could be allowed to return legally.

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Speaker 6: Do what's right, leave now. Under President Trump, America's laws,

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Speaker 6: border and families will be protected.

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Speaker 4: Sponsored by the United States Department of Homeland Security,