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When is it Time to Buy vs. Rent?

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  • Description

    Barry Habib of RPM Mortgage explains why he is bullish on the housing market.

  • Duration 4:51
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This transcript is automatically generated

All right glimmer of hope or just an anomaly.

The latest case Shiller home price index came out this morning and -- prices rose last month for the first time in eight months.

But our next guest says he's not convinced it means that prices are truly on the upswing.

And if you're lucky enough to be a buyer now is a pretty good time to get -- joining us now has very happy he's -- Yasser for RPM a mortgage bank based in.

California there is also a Broadway producer which we'll also get into that first very welcome great to CEO thank.

Many think the prices -- isn't just an anomaly is -- We'll take -- I'm very happy that we see that but you know one month in a volatile index doesn't necessarily make a trend right so.

I would not be surprised to see prices trend downward.

A little bit still on as we all know that real estate is so regional and local.

That it all depends on the market place the trend however.

Longer term I am very very bullish on the housing market I think that this right now creates quite the opportunity to be considering to purchase -- stay there long term.

And I -- for at least a couple of years everyone's been saying should I refinance now -- rates gonna -- low lawyers as low as they're gonna go and I've been telling people.

Do it now is -- go much lower if they continue to go lower -- -- well.

-- like Q I had thought that they had kind of bottomed out when -- had reached that 5% level or maybe just longer five.

And -- surprise many people including myself that they've gone down even further still.

But can they go down further.

I think that there's some factors out there that we have to consider that right now in this range where fixed rates are on the four and five eighths area for a half there we're kind of near the bottom.

Of where we've been both on the technical aspect but also fundamentally speaking -- a lot of things happening you know -- some fears about what's going on the debt ceiling.

There is inflation that we're seeing -- brought back in China in India.

That is is is supposed to be coming this way when you see food prices going up UB we have core PC yesterday shown some signs I think rates are now starting to get some pressure little bit down the road rules seem.

I'm -- your mortgage banker curious what you're seeing in terms of demand -- -- you have offices all over the country you can't mention the -- -- of its home market how is demand is that improving and have your restrictions tightened up to because of condition.

Well you know what they've become a little bit more common sense on the guidelines so you know it's some it's so funny people so well banks certainly will have to fix a people have to want to borrow and secondly.

We which just lending them at more common sense terms like hate you need to job you know you need to have reasonable credit before was fog -- Mira here you go your proved.

And that's what comes in a lot of trouble so.

-- the lending industry right now is pretty healthy quite honestly and and those.

And those transactions that are being done now are going to perform much much better because they've done much more common sense oriented so.

We are seeing high demand and we're seeing it in all over the country.

You know we speak off and out did you buy or do you -- -- is real answer I mean people it is -- like crazy left and right.

You have a formula that you use this kind of a guideline and it's very simple -- -- we've seen rents go up up up.

And home prices have come down.

So now we've reached the level where history tells us you look back to -- 1992 you look back to 83 before where when these levels -- hit.

We see.

An opportunity to purchase real estate and this in the formula is so beautifully simple if you take a look at the purchase price you wanna build into model look at -- a business transaction so.

If that's the home which is using -- we're 200000.

Assume a 20% down payment even if you're gonna put down more or less just assume for a moment a 20% down payment that leaves -- 160 mortgage.

And then figure out what's a thirty year fixed amortizing loan even if you choosing something else use this for the model.

In many parts of the country we see -- payment about 1250 however amazingly.

Most of the time he'd take that same -- similar home and see what when he ran for its ranking for more than that which makes no sense whatsoever.

Everyone the clock for five years ago.

That home price per month was costing -- -- close to 2000 and -- it was closer 1000 which didn't make sense obviously prices were topic.

Now we've come the other way to the extreme people gotten burned in the housing market and they're so hesitant to -- that's -- this opportunity.

So has your business supported your other passion -- -- your Broadway producer -- rock of ages and involved in the movie production.

I so excited about the you know the movie so much fun but -- -- the two industries go together in your world.

Well they today or is this just kind of get to interests you know what it's sick it's it's has -- -- -- about about helping people and entertaining people and you know and appear and in business yet clearly we're we're we're doing.

-- there wanna be passionate about helping me in my acting career right.

You got I mean actively so many these roles rocking cool dude why could not have played that role in the movie you Antonio pat in his playing that role that come -- -- you know they'll Tom Cruise.

Isn't that the rock star right Stacy Jack see absolutely no you know that it's a big it's a big -- you guys know what it's not too late come on down -- South Florida were filming and we'll see maybe you won't get some extra.

A crash actually focusing some of those -- band tunes.

I think that's -- hidden talents material ounce thanks to invest separately.

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