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Talk about mortgage rates and -- up with us Stuart -- our -- the national real estate and mortgage expert over there correct -- you think.
Yes lamb how were you Lauren well I'm good I am actually very excited to talk to because.
This housing market has been Strauss for some time and everybody knows that.
Issues with the housing market if you will the right now we have blessing on our hands in the form of the fifteen year mortgage rate in the thirty year mortgage rate.
That are basically at.
Some of may mean the lowest levels we've ever seen at least I think the fifteen year -- a record low cracked.
Yes it did it's -- it's based on the price of the ten year long term treasury right.
Sell -- and went to I think there was I think that was a little euphoria and relief when the averted defaulting on the national debt.
But I think if you look at the total picture I don't think it's good.
-- -- Did that before we talk about the housing industry over all of our people.
You know refinancing their homes right now with these interest rates that are just unbelievably low have you seen a lot of -- The problem with refi is that is.
Many people can't refi because they're in a position where they don't have enough equity in their home but if you do have the equity.
And if you have an arm and it's a great time to let go get a fixed rate loan if you can do it even if you have to add a little cash.
Grab that fixed rate well it's as good as it is.
So nothing really is helping the housing market and as He can even have refunds out there and take advantage of these fees low mortgage rates.
Yes I mean the housing market isn't going to recover until the economy recovers right now -- as we know the supply far exceeds the demands.
And when you hear job figures like today it's not a good sign for the any kind of -- -- Because -- eat each house created creates three jobs is is that is that this is Sissy that we go with these days.
For every let them know every three jobs are created right.
And so so that makes sense that you need firm labour market to indeed have a strong.
Housing market my father's in the -- industry and I know that that's.
You know he's -- and he's been feeling you know slower sales fines for quite some time because yes with the housing market for cover.
So -- -- accessories and the price you're doing that there waiting on housing -- waiting on jobs jobs they have economy it's all terrible vicious cycle.
What the biggest problem is right now is it lack of liquidity.
Is it the fact that it's too hard to get a home.
Qualifications are too -- south analysts the problem.
Qualification has tightened up and in many cases rightfully so I mean you do have to qualify for your loan.
I don't think the United States government could qualify for a Fannie Mae loan today.
Probably would -- consider yeah sure enough.
I the past few -- okay.
But I'm afraid if the credit markets tighten up a little bit and our creditors -- China companies countries that are investing in our securities if they demand the higher interest rates.
That could throw a devastating blow to the housing market.
Yes and obviously sell because even with these rates right now we're not seeing much activity.
Other foreclosure market obviously a big deal tons of foreclosures overhanging the market in Florida where you are.
How -- -- get them off the market.
Well I mean we're sitting nationally with I think a shadow inventory of like four million homes new homes that the banks have already foreclosed on haven't put on the market are in the process the -- closing.
So people that are.
Owning their homes in the wanna sell their home they have to compete.
With these four clothes prices so it's hurt everybody yes so that when I when I was in the mortgage business typically a foreclosure in the neighborhood.
Would be an admirable -- -- have Babylon abnormality it would be an aberration then you wouldn't take that really into consideration but today it's the norm.
So for close price is setting the value for the whole neighborhoods.
And unfortunately and the other thing I mean I know a lot of people.
Newly married they bought their starter house and now they want a second house but they can't get -- -- that they paid.
For the starter house so why -- -- Buy another house if you know I -- even come close to what you paid for it just a couple of years ago communities in the kind of things that you hear when He speaks people.
You know and all different parts of the country now.
On the so do you think -- home prices will move lower or do you think we might see some upside surprise -- -- in the -- and reports we just got.
For the month of June which were the latest set believes the new home and existing home prices both rose cracks me if I'm wrong.
But He is that the start of a trend.
I think it's a little bit of realtor -- It wouldn't surprise me if we have a -- -- more of a dip in housing prices but I do think.
But if you're young couple if you're affirmed a family -- first family wanting to get your first home.
By it I mean even if it would dip a little bit you're gonna get a lot of home for the money a lot more than you could a few years ago and you can get a historically low interest rates.
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