➡ After President Trump’s announcement to lower rates, mortgage demands increased significantly. This led to a brief drop in the average rate on the 30-year fix. As a result, refinance demand surged, but the speaker warns against this practice, arguing it contributes to housing unaffordability and economic instability. The speaker also criticizes the practice of buying properties, making minor improvements, and then refinancing based on the increased value, which they believe creates a real estate bubble.
➡ The text discusses the impact of a proposed cap on credit card fees, which could significantly reduce profits for large banks and limit credit availability for customers. It also emphasizes the importance of getting involved in local politics to influence property taxes. The text further highlights the need for a diversified economy, using the example of Detroit’s reliance on the auto industry and its subsequent diversification into the mortgage industry. Lastly, it suggests that the U.S. needs to create new industries and encourage companies to manufacture and distribute products domestically.

Good morning, Becky. And mortgage demands spiked sharply higher last week after President Trump’s post on social media that in an effort to lower rates he would order Fannie Mae and Freddie Mac to buy $200 billion in mortgage-backed bonds. Just on that news, the average rate on the 30-year fix sunk briefly below 6% on Friday morning before bouncing slightly higher again. But the average rate on the 30-year fix for all of last week, that’s the average on the Mortgage Bankers Association survey for conforming loans, dropped to 6.18% from 6.25%. Again, that’s the weekly average, but Friday it was much lower.

And as a result, refinance demand surged 40% higher for the week and was 128% higher than the same week one year ago. Y’all gotta stop taking out these loans, y’all gotta stop refinancing, and some people will make the case and say, well, I’m getting a lower rate, so it’s gonna cost me less. Y’all just need to get out from under these bad loans and just pay off your property, bro. You’re paying the fees. You gotta pay the fees also. All y’all doing is really pulling the money out of y’all houses and y’all properties.

All you’re doing is trying to pull the money out. That is, that’s what’s fucking wrong with this country. That is what’s wrong with the country. I hate the burn method. I hate the burn method. I absolutely do. Absolutely hate it. Y’all know what the burn method is? So they buy it, right? Let’s say, for example, somebody get a property, pick up an apartment property or something like that, right? And they put a little bit of money into it. Most of it is aesthetic in order to try to increase the occupancy rate.

So they want the occupancy rate to hit a certain percentage. Then once the occupancy rate hit a certain percentage, then they can raise the rents a little bit, right? Once they hit a certain occupancy rate and they raise the rents, right? Then they refinance, pull the money out based off of what the new, remember this, there’s a new value for the property. So instead of the property is worth X amount of dollars is worth significantly more because they were able to raise the rents and increase the occupancy by just putting a little bit of money in there, right? So now they pull the money out and they either at some point sell it or they continue to try to keep the occupancy high to try to pay down the mortgage.

And then what that allows for them to do is to take the money, buy a couple toys and then reinvest it into another property and try to do the same thing, rents and repeat. So basically what these people are teaching out here is going by a property, improve it slightly, try to get more people in there and try to increase the rent, go to the bank and say, this is the new valuation of the property based off of what I was able to increase it, you know, what I’m taking in. The bank reassesses it at a higher value.

They then pull the money out of that property. The difference between what they own the mortgage and what the new valuation is, they go and buy a couple toys and then they go and do the same thing over again, hoping that they can continue to make the mortgage from the property based off of the amount that people are paying. What that does is it then makes housing more unaffordable while at the same time creating a bubble because if anything happens to where the occupancy rate drops down or something like that, then whoever it is that owns the property won’t be able to sustain it and then it creates a bubble, a real estate bubble, right? And so it really is bad for the economy, is bad for the community, but it lets you individually, if you’re able to pull it off, feel as though you’re getting rich and you’re being successful.

That’s why a lot of people say, oh, I own a lot of doors, I own a lot of this, I own a lot of that. That combined with institutional investors buying up the majority of the homes in places like Georgia, Georgia, interest rates, all of this stuff, it’s creating an environment that’s unsustainable. So when you look to Trump or you look to the federal government and you say, amen, why ain’t my housing? Why is the rent too high? When Bernie Sanders comes in and says, the rent is too goddamn high and all this shit, right? Mom Donnie says that he’s going to freeze the rent and they start putting all of these things in places that’s not going to help you.

You are not realizing that this is artificially created. This has nothing to do with the federal government. What Trump is trying to do is put pressure on Jerome Powell and the Fed to actually lower interest rates, but instead he not able to do that because Jerome Powell is fighting back, right? For whatever reason. So then Trump tries to go around him and say, well, listen, we can lower interest rates while taking $200 billion and being better about this. And so they’re trying to manipulate interest rates so that people would spend more money on housing, sell houses, feel like they can have a more affordable way of living and actually be able to get a refinance on their mortgages.

Those that are already in properties to pull the value out of their homes and go and spend it on a bunch of bullshit. That is the truth. But we don’t want to learn about that shit. You know what we want to talk about? We want to talk about dick and pussy. We want to talk about stupid stuff. We don’t want to mix it in. Now, if I start having this conversation and breaking this down on some of the ignorant platforms, then it’s going to be like, oh, you think you better than us.

You think you better than us. Stop selling your mama’s property. Stop pulling money out of your properties. Stop selling your mother’s property. Stop refinancing. You’re making your cost of living going up, go up. Somebody says, and somewhere, Michaela Montgomery, been she around. I just talked to her yesterday. Actually, I was texting back and forth with her yesterday. I want to know where she been. That’s my girl. That’s my baby. That is my baby. It’s funny that you asked about her. I was just talking. I was just kicking it with her. That’s what I just said, Pop Brown.

They take it and they go and use it for another property, bro. What’s going on? Hey, listen, Michaela, I got I got I got you on the live stream. The people want to know where you’ve been at. They said they’ve been asking, they’re asking about you in my chair. Wow. Tell me, I guess 2026. I plan to pop out this year. I had to lay low. I had some things I needed to take care of a couple goals I needed to accomplish. But I got my bearings in order and y’all can look forward to seeing a lot of me in 2026.

Actually, Anton, I need to be asking you why you haven’t been calling me more. What do you mean? I keep I keep telling you that I want you to come and see me and that I’m gonna bring you here. Well, what’s up? You know, my name, birthday, email. I don’t really know what’s stopping you because, you know, I do what you say. So you say, hey, you in Detroit next weekend. I guess my black ass will be in Detroit next weekend. So you’re gonna do anything I tell you to do. I mean, you know, we have a few parameters, but I bet then say less.

Watch what I do. I’m going to increase the cadence in which we communicate with one another because yeah, you’ve been playing with me for the past year. But look, like I said, I got my life together now. So we are good. All right, bet. I’m on you. I’m gonna call you soon as I get up. Thank you so much for checking on me and loving me, even in my times of disappearance. No, we we we about to have you popping out. I love you. I love you, baby. I love you, too.

All right. Bye. Bye. There you go. There is Michaela. I love that girl. Don’t be asking what my friends are. Don’t be asking what my friends are talking about. She calling you out. Preach girl. She go. I love her average. Loan size for refi applications also higher because borrowers with larger loan sizes are typically more sensitive to those changes in rates. Now applications for a mortgage to buy a home which are less sensitive to sudden rate changes. They increased 16% for the week and we’re 13% higher than the same week. One year ago, the increase there probably driven more by just people returning from the holidays, easing home prices and more inventory available for sale.

Now mortgage rates. They moved a little bit higher to start this week. That’s according to a separate survey from mortgage news daily, Becky. So let me go over to this other. Well, let me hear that’s really amazing. That surge that came in, would you say 40% higher on the refinancing just because it dipped below slightly on Friday. I mean, that tells you a little bit about the pent up demand. There is for people who are hoping to get access to lower rates. Somebody said you never own it because of property taxes.

That is correct. But guess how you then saw for that? Guess how you then saw for that getting involved in local politics, getting involved in local politics. That is how you solve for that. Getting involved in local politics. I keep telling people you can’t have any meaningful change if the only thing that you protest and is if somebody wind up getting killed by the goddamn police. Very much, very much so. But you can still control the amount that you’re paying in property taxes. You can control the amount that you’re paying in property taxes.

100% you can. You absolutely can. Yeah, there will probably already be always be property taxes and you can control where your property taxes are going. I don’t vote. I don’t vote. Okay. All right. All right. I heard that. Heard that one before. Just heard it last week. Solid quarter all around. Guidance was in line with what they had expected heading into the quarter. But a couple lingering things, higher expenses for 2026 as they continue to invest for growth. We’re talking about $9 billion increase in expenses. And then the credit card cap is still lingering across JP Morgan and the large banks.

Herman, since everyone’s been talking about the proposed cap by President Trump on credit card fees, what was the messaging from JP Morgan on the impact of that? Yeah, the messaging was that this would have drastic repercussions not only for JP Morgan, the banking industry, consumers, and overall GDP growth. So you think of credit as being the lubricator for economic activity. And when you slash card rates, that really will reduce the credit availability for a lot of JP Morgan’s customers. So you can think of a large swath of them just not having credit card usage going forward under a 10% rate cap.

And you see what people, the reason why they fighting so hard about a 10% rate cap is because you basically be killing the profits of large banks significantly. Because if you can give a 18% to 26% interest rate on a credit card, for example, and people basically is paying that because they have to be protected against themselves in order to make bad decisions. You’re killing a lot of the profits that come into the banking industry that they use to be able to push out other products, right? Because the bank’s goal is to loan as much money as possible.

Their goal is to get as much money out there as possible. They want more money to circulate. Why do you think that banks because some people will say, Oh, my God, man, they’re not lending to us. No, no, no. If you are a person that is worthy, they will chase you down to give to give you money. They will chase you down and give you money because that’s how they make money. Their goal is to find people that is worthy to lend to that know how to make it shake. But the problem is that our economy is built off of financing because we don’t make anything anymore.

So we need a better balance. It’s almost like Detroit back in 2008, right? We were not diversified in what we did in this economy in our local economy. And so what we did was we only sold cars. We only saw cars. It was only based off of the auto industry, largely mostly the auto auto industry and everything was dependent on the auto industry. So when you seen the collapse happened in 2008 and two of the two of the automakers file for bankruptcy, well, that’s what happened to Flint. The reason why Flint is fucked up.

It’s not because Flint is ghetto. It’s because Flint dependent solely on the auto industry. Flint was one of the most prosperous cities in the United States of America at one point. People don’t even know that. More money was flowing out of Flint because they had General Motors up there. All of the major plants was up there. More money was coming through in Flint and they was busting that bag down, down. But the problem was that when the auto industry didn’t sustain itself the way that it was back then and all of the jobs and all of that, well, the economy became interdependent on that alone.

Yeah. Yes, ain’t it? All right. So what we did was we diversified. Not only do we still have all of our auto industry, which is booming because they added a lot of jobs and stuff like that, but we diversified significantly. We are the largest, the largest mortgage, mortgage city in the United States of America, Detroit We have more mortgage jobs as far as rocket loans, United Warehouse Mortgage. We do more revenue and to have Dan Gilbert actually move his country, uh, company into Detroit actually is one of the biggest turnaround reasons why you see the Hudson’s building in the background over here.

When you see that building right there that is literally built by Dan Gilbert and it spurs an economy that then generates a lot of revenue, which is an inspired to sit the, um, sports teams to move all within the city, created other industries. There’s a lot more going on, but you have to, you have to have a diversified industry and you’ve got to do that by creating an economy or an environment that is business friendly. It has to be diversified. It can’t be just depending on one thing. And so even the Trump administration, they say, listen, we need to over time, probably over the next five to six to seven to eight years, create new industries, whether it’s making ships here, whether it’s opening up and expanding auto manufacturers, auto manufacturers, whether it’s developing products that are designed and made by Apple here, all of that type of stuff.

When you see Trump say, well, we got trillions and trillions of dollars that is going to be invested in the United States of America. This is our attempt to force companies to do business in here. That’s beyond just loaning the money or designing it or any of that type of stuff. They actually have to create and distribute products inside of the United States of America to still be able to do business with us. [tr:trw].

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