When we saw times of economic distress and recessions, you would see, and this this red line is the median sale price of homes, houses sold in the United States, right? When we see these gray recession bands, not all the time, but most the time you see a flattening or like this one 1970, a lowering of the the home price value. This was pretty much a stall out, went straight ahead. This one is pretty much a stall out. This one, a stall out, but then we saw a big drop during the Great Recession and we saw a drop in home prices, even though it was pretty choppy right before COVID started.

Okay, now everyone’s been focusing on these two parts of recent history. That is the price of homes have shot up dramatically and at the same time, the mortgage rates have shot up dramatically. Well, let’s look at a couple of things that are happening right now and this is what nobody wants to admit. The price is a current chart of the Fred’s median sales price of homes sold in the United States. Don’t worry about this line. It’s flattened out. I didn’t finish that data point, but you’ll see that around the third quarter of 2022 actually did a handful of videos this quarter saying we were in the top of the real estate market.

You can see that the home prices topped here and they started to fall significantly. Now, we are already down nationwide around 10% for homes sold in America. And what’s really scary is at the same time, we are seeing mortgage rates come off of their high of almost 8% which was in October of 2023. If you’ll notice, those dates are about a year apart because there’s always about a lag time between mortgage rates and home prices and now they are starting to fall. They’re on a downward ascent. So I want to raise a couple of ideas or thoughts here.

See, back in 2006, July, when mortgage rates had topped almost right below 7%, most people weren’t thinking about a housing market crash. I was. I had sold by then all of my homes except for three properties. I kept one of my personal residence, a rental and a blank lot and everything outside sold. And from that point on, real estate rates, mortgage rates started to fall. And the reason why is because investors were very afraid and they started to buy bonds. They were afraid of a market meltdown and they were afraid of a mortgage crisis and a housing crisis.

So they started to buy bonds and that pushed the 10-year bond down. And you could see from that date of July 27, 2006 to when we officially entered the Great Recession, we had dropped, what, about a point, more than a point, a full interest rate on the mortgages. Well, at the same time, if you look, let’s go back, July of 2006, the home prices, look at where they peaked here. They peaked here in quarter one of 2007. Remember that one half year to year difference? Quarter one of 2007 and what we see is they started to fall, going in.

Home prices falling at the same time as mortgage rates. When we go back here, and this is, and I’m gonna throw a link down below, you’re gonna want to check out. For anybody that has mortgage rates over six and a quarter percent right now, I can help you out a lot right now. And it doesn’t cost anything. You just check it out, check out the rates. You can see where the home prices were falling at the same time mortgage rates were falling. The home price is stalling out as at the same time mortgage rates are falling.

This is counterintuitive. You see this time mortgage rates falling, home prices stalled. This is the only time where we saw like still a blow off top because the early 1980s were insane because of the inflation story. This is very normal in a falling interest rate environment. And even though people think, hey, interest rates are still high, Ninja, it doesn’t matter because if you look at the price of mortgages as compared to a little while ago, they’re starting to fall. And they’re falling in conjunction with the, what is it called, the home prices.

So what I want to tell people, if I put down a link down below to help people get refinanced now before their home prices fall too much, before they can’t get in line with what the banks want to do when they give you the best quote possible with the value of the home in conjunction with how much of the mortgage you need. I tell people to go get many quotes. I believe I’ve been able to work out a deal with a company to bring some incredible value to people and blow away the big mortgages, the big banks when it comes to mortgage rates.

Links down below, get multiple quotes. And also when you refinance, make sure that the cost of refinance doesn’t take more than five, six months. For sure, don’t go past a year for the cost of refinance to be put back in your pocket from the savings, right? But right now you have an opportunity to reset that mortgage clock and be able to get the lower rate, take the savings per month and stack it on your car debt, stack it on your student loan debt, stack it on all your debts, credit card debts, also get that stuff paid off and then use velocity banking to pay off that mortgage super fast.

This is a game changer because we have a very small window as mortgage rates and home prices are now falling to be able to get people some breathing room going into this next downturn in the real estate market. Alright, with that being said, thank you so much for watching. The Ninja is out. [tr:trw].

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