Tampa. I don’t know so much about Miami. I don’t remember seeing it in Miami. Bucky’s. What is Bucky’s? Bucky’s is a wow steroid. Oh, Jesus Christ. More stuff y’all to buy that y’all don’t need for us to throw away once it gets enough dust on it in the crib. Usually the time, a busy time for the housing market when folks are going out and looking at homes to buy, but they are dealing once again with mortgage rates that are on the rise. As you said, mortgage rates now above 7%, averaging actually 7.17%. We haven’t seen rates that high since November of last year.

Big reason why the Federal Reserve, right, it had said it was going to start cutting interest rates this year, which would have helped mortgage rates, but now it sort of changed its tune because inflation is proving to be more stubborn than we first thought. And so the Federal Reserve may be holding off on those interest rate cuts, possibly, Kira, for the rest of the year. So you do know that when we talk about these interest rates being high, it’s a couple of different things that y’all need to take into consideration. I know you all haven’t even thought about the possibility of getting a 15 year mortgage or a ten year mortgage and then lowering the amount that you would spend on a house so that you can actually pay it off a lot quicker.

But interest rates are always lower on mortgages that are. That take less time for you to pay off. So if you get a 15 year mortgage is going to be less than a 7%. 7% is pretty crazy. It’s crazy compared to what we used to back in the day. They actually had it higher than 7%, but they adjusted the type of the type of property that they bought based off of what was necessary for their family. They didn’t need a mini McMansion in order to put on instagram in order to impress everybody. The real flex is having a paid off place that you can live in that’s it.

The flex. Let me tell you what the flex in life is. It’s not about the interest rate. It’s not about what you can pay. It’s not about what your payment is. It’s not about the perception. It’s about what you actually have that you don’t have to spend an extraordinary amount of money in order to exist in so you can allocate your resources over to the things that really matter. You want to spend your life stress free. Okay? They’re going to continue to raise the rates if inflation doesn’t tamp down, as long as we continue to send money over to Ukraine and we send money over to Israel and Taiwan and fighting these proxy wars and migrant crisis and stuff.

And the interesting thing about that is that a lot of homeowners is going to continue to stay artificially low in because a lot of homeowners are unwilling to sell. Why? Because they know that they can’t take the money and buy another property because they only have so much equity into it. A lot of y’all keep saying that. Y’all ball and I own my own crib. You lying. You’re lying. The bank owns your place and if you miss three payments, they coming to take it. If you miss three payments, they’re coming to foreclose on your property. If you miss three payments, when it comes to your car, they’re coming to take it.

You know why? Because you don’t own your own car. You financed your car and you have to make 360 payments to your mortgage before they even relinquished, they even relinquished the title to your car. So it’s always popular to say, but it’s just a marketing tactic and it’s a marketing tool in order to get you to continue to pay interest. The real flex is not to be paying anything. And that’s not telling you all. I’m not telling you all to go out here and live van life. But what I am telling you all is that they’re going to continue to raise rates as long as inflation is high and as long as we have this bad, horrible president that don’t understand inflation.

Because interest rates see, when they raise the rates, it’s largely talked about and reflected in the mortgages. Not always talked about and reflected in your day to day activities. Because these businesses, these banks, these small business loans, credit cards, all of this stuff is exploding. Credit card debt is higher than it’s ever been. It’s higher than it’s ever been. Car notes, y’all all paying thousand dollar card notes. We gonna get to that shortly. We got a segment for that too. But y’all keep paying all these high ass interest rates. I don’t believe in paying no interest.

Why would I give money to the bank when I can keep it all in my own pocket rates this year, which would have helped mortgage rates, but now it’s sort of changed its tune because let me tell you something, let me say this one more before we get into the rest of this, this segment. I have more reverence for the person that has a paid off, relatively cheaper home than the person that lives in the McMansion that has this huge ass, this huge house. Note for the person that chooses to live in and not have to spend an extraordinary amount of their resources in order to live in a house and is paying off the is paid off they mortgage.

If, listen, if you are a millionaire or you are 100,000 error or you a thousandaire or whatever, right? Because it’s largely tied into your net worth and you in a paid off home that costs 200 5300 thousand dollars, $350,000. You ballin above the person that has $1,000 equity in a million dollar home. Don’t be finessed by these talking points and these Instagram profiles. Listen, Diddy himself, as much money as he was making, they say that Diddy was making anywhere between 30 and 50, sometimes $70 million a year. Did he have like eight mortgages on some of his properties? Them big old homes that he got down there in Florida and Los Angeles, they be having jumbo loans on those properties.

Now, the way that they mortgage properties is much different because they want to leverage the equity that they have and other things in order to reduce the amount of taxes that they got to pay. Because if they have to take the final payment and then pay the taxes, what happens is, you know, not mortgage in a property forces them to give more over to the federal government. We’ll dig into that. Inside of the Patreon, however, they be having jumbo loans, they be having 8910 different mortgages on those properties in order for them to be able to live in those places.

And then it’s hard for them to move them because they have a smaller pool of buyers that is not pressed to be able to buy that property. And so you want to stay in that sweet spot and you also want to make sure that you paid off your property, because then that opens up the possibilities of where you can deploy the rest of your capital and your resources. Inflation is proving to be more stubborn than we first thought. And so the Federal Reserve may be holding off on those interest rate cuts, possibly, Kira, for the rest of the year.

So what does this mean for homebuyers? This is typically the busiest time of the year for the housing market. Right. So homebuyers are dealing with two things. Not only are mortgage rates higher, but the prices of homes not coming down, still near a record high. You’ve got the median price now for an existing home in this country, nearly $400,000, putting it out of reach for so many folks, especially those first time homebuyers. So here’s how it breaks down. If you were to buy a $400,000 home at today’s mortgage rate, your monthly payment would be about $2,700.

If you had bought that same home three years ago before the head started hiking interest rates and rates were about 3%, your monthly payment would have been about $1,000 cheaper at about $1,700. That’s a real savings for folks. And I think the bottom line here, Kira, is that experts I talked to say expect mortgage rates to probably remain high for the rest of the year. It’s important to shop around, check out different. You’re not gonna get a much smaller rate no matter where you shop around to. That’s just a fact. Home buyer demand taking a hit this week as mortgage.

Oh, hold on, bro. Where your stash at? I don’t. I don’t know. Is this a. Is this a new trend? Is this a new trend? No hair on the face, no stash. I mean, I’m not listening. I think that everybody can do what they want to do, but is that a thing? Homebuyer demand taking a hit this week as mortgage rates stay above 7% for a second week in a row. The uptick, see, the 15 year is significantly lower. I mean, it’s not too much lower, but that’s a huge amount when you’re talking about financing a half a million dollars or $400,000 for a house and rates is certainly a sour note for potential homebuyers looking to get in during the spring selling season.

So, with sticky inflation pushing mortgage rates higher, should you rent an apartment or buy a house right now? Yahoo. Finances. Danny Romero has the details. Hey, Danny. Brad. Consumers are dealing with high mortgage rates that are hovering above 7% and rent prices that are falling. So which market is better to pencil out here? Quentin, over here being crazy. I see you, Quentin. Well, data from realtor.com shows that the monthly median rent in February was about $1,700. That’s $4 lower than in January. And that’s enough to buy you a McDonald’s Big Mac every month. Just a suggestion.

The biggest price cuts in the rental. She threw that joke in there. So the producers did not write that market were for a studio apartment. The medium price tag for median price tag. Excuse me, a month was about $1,400.02 bedroom and one bedroom apartment. Apartment prices also fell. But if you are considering in buying a home, data from Redfin shows that the median monthly payment on a home hit a record. It’s about $2,800 a month. How are y’all affording this? I’m just. Cause I know. And y’all wanna act like Anton. You so disconnected. I’m not, I’m not.

My costs are very minimal. All of the costs that I have is associated with my businesses. So when it comes to payroll and equipment and all of that stuff and a rent for this place or whatever, that’s completely separate from my own personal life. How are people affording, spending this type of money when we know what the average income is and the average household income, the median household income, y’all gotta be spending at least 50% of your income on your house payment. And this don’t even have nothing to do with the property taxes. This don’t have nothing to do with maintenance.

PMI. If you got PMI utilities, this ain’t this. That’s not even baked into the cost. Insurance costs. What goes in an escrow. So you can then pay your property taxes on time and the county or the state don’t go ahead and foreclose on it and take it and sell it at an auction. How are y’all affording almost $3,000 a month for a house payment? And you gotta hustle and struggle for 360 months and try to survive this jump for the next 30 years? Man, I’m not paying nothing for 30 years. I’m not paying nothing for 30 years.

30 years. I mean, this is. Can’t three. Okay, so let’s take it $3,000 a month. So y’all paying 30? A little. Let’s just say a little. Somewhere between 35 and $36,000 a year. If the median household income is like $67,000 a year, and then you got to take taxes out of that. Now, household income, meaning people combined, that’s a lot of money, bro. It’s a lot of money. That’s a 13% increase from the same period last year. And mortgage rates are partially to blame here. The average 30 year fixed mortgage rate is hovering above 7%, pushing homeownership out of reach.

That’s insane, man. But y’all asked for this. This is the economy that y’all want. They keep selling you on the idea that jobs are plentiful and everybody is winning out here in these streets..

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