What's going on, everyone. Welcome to my Real Talk Real Estate. I'm David Green. He's Christian

Bachelter, and we are Mortgage Monday, your favorite news source for what's going on in the mortgage world as well as your favorite lenders to help you get that loan to finance the dream of owning real estate and building wealth. Christian, how are you today? Doing good. Funny timing. We're actually recording this as Jerome Pals on his podium right now. So you can see on my phone here. I'm watching him in the background. So we're not going to have a full breakdown of everything that he says today. But yeah, we'll talk a little bit about what has been said, how it affects the market and what the overall response is. Yes, we will. And this has been something we've been needing for a long time. We've been talking about it on this show. We've been talking about it on different shows. The real estate world, in my opinion, desperately needs lowered rates for everyone who thinks that that means that houses are going to fly off the shelves. They're going to sell for double what they are now. Could. Probably not very likely. I think the majority of people who own real estate are barely limping along. And a lot of people that wanted to own it before, they don't want to own it because prices are not skyrocketing. So if you're hearing today's show and you're worried and you're getting anxious and you want to punch me in my bald head because I keep talking about how we need lower rates, hear us out on why we think that this is not going to make the market take off. I don't think that there's as much demand to my real estate as what there was in the past because you don't have appreciation. You don't have rent growth. Expenses are up. The overall economy is bad. So if I'm right about that, this is likely going to bring relief to people that own homes. It's going to bring relief to people that refinanced into a rate that was higher than it is now where they can refinance and get some savings. So we're going to talk about that on today's show. And it's also going to bring relief to people that are in the market to buy a house because they're not trying to time the market. They're just a regular person that needs to buy. And they don't want to have an eight and a half percent interest rate when insurance is double or triple and all their other expenses are higher. So I'm, for one, happy about this news, not just because I own real estate, but because I think the market needs it with all of the bad news that's going on. But I'm going to kind of surprise you here, Christian. What's your emotional response to this? Are you glad rates are coming down or do you think that this is a bad thing? It's a good question. A lot of similarities with what you said where I think the people benefiting the short term are not necessarily new buyers because I do think our industry is a very reactive one.

Right.

Part of what we teach and we try to get out there is for people to be proactive and get ahead of things.

Right.

Unfortunately, it's not how the world works.

People usually need to hear, i can get x interest rate

okay i'll go start searching but at that time probably the interest has kicked back up and you were

gonna you know it won't be like it was in covid but remember when people are having to offer wave

their contingencies offer way over asking right that's that's the severe example of when it really

gets carried away but smart investors exactly

like what you just mentioned david they they keep track of these things and the people who already

own real estate benefit from it because they refinance right they lower their holding cost it does

benefit them immediately right whereas new buyers typically it's a much more trailing indicator. It's a lagging

indicator, right? I'm not sure, you know, the Fed, we're already about 30 minutes into Jerome

Powell's presentation here. They lowered rates by a quarter percent. So it's about 99% of what was

expected to happen. There was some prediction that he may cut it by a half a percent that did not happen.

But he has made some preliminary, you know, innuendos here that it's likely to continue

cutting as we go into next year as well.

What that means is rates will start to trickle down, which is good.

Now, at any point in time, as you guys have known, who have followed the Fed, you know, or followed this show or whatever you get your advice from, the last three years, the Fed can pivot quickly. So if tariffs start to take off, we've had a very interesting rollercoaster on the jobs reports the last couple months. Those of you who'd follow it, we had a revision that I think went from 114,000 jobs to 14,000. So we lost 100,000 jobs on our reports.

We can get in a little bit about how that we had a revision that I think it went from 114,000 jobs to 14,000. So we lost 100,000 jobs on our reports.

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