Falling Mortgage Rates: Housing Crash Avoided?

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Mortgage rates are falling! Can a housing market crash be avoided?
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#housingmarketcrash #mortgagerates #realestatenews
Todd Sachs is a Maryland Real Estate Broker and not a Lender, CPA, Attorney, or Financial Advisor.
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[@ericmiller4593]

Why does everyone say prices are up 40%?!?! Look around you. Prices in most areas DOUBLED. That’s 100%+ increases, not 40%

[@timeforachange-i3s]

You are correct. My son bought a house in 2019 for $228K and now it is worth $430K. My subdivision is relatively new and people that bought two years ago for $350K now want $550K for the same home. They want the tax-free gains since they lived in the home for 2 years and want to walk away with a 57% tax-free payment in TWO YEARS.

[@john-robert1961]

@@ericmiller4593 EXACTLY!!! 40% my foot!!

[@adamhatcher6620]

Rates need to stay high for as long as it takes to get back to pre pandemic prices!! The average American can't afford the average home... prices only have one way to go

[@Zanzan8]

I love Rodds smile and laughter and voice.....he seems like a nice genuine person 🎉

[@cruzrv4399]

Hi there I’m here in Australia. Thanks for your content Todd. Same things are happening here in Australia. I’ve been watching it for about five years housing. Bubble is completely out of control. In our major centre is the only people turning up at auctions are new immigrants Indians and Asians You basically do not see any Australians turning up at these auctions. Our mortgage to income ratio is now like 13 to 14 times. Spending has definitely come to a grinding halt here in the last eight weeks. We run a few small businesses and we have noticed people have basically stopped spending. The only people left with money at the boomers and most of them are pulling that money out of the markets and giving it to their children as deposits for, massively overpriced Real Estate locking their youngsters up into a world of debt pain. The FOMO is off its head.

[@ericobrien1977]

I'd like to see all these investors lose their shirts.

[@5678seth]

This podcast is one of the best ones about real estate it's really become my number one listen to thanks Todd Great info You're a normal dude you do a great job

[@alyross2850]

I like how these shows take as long as they take. Many other channels spin you around and wrap it up with tidy slogans….all in 14 min and 5 seconds!

[@rillesttalk]

The crash hasn’t been avoided… just delayed.

[@cfoster6804]

Exactly

[@cruzrv4399]

Most of our immigrants that are purchasing property here in Australia are sharing the accommodation with grandad, grandma, uncles, aunties, mums, dads, children, nephews, nieces, cousins etc. Most Australians are still thinking that they should be able to purchase a property And leave it with their partner and their own children. They are not fully awake to the fact that the system has been corrupted. Some Australians are slowly starting to wake up to it but not All. Gen Z’s same to be opting out of the property market for the most part. We have many tent cities, people living in RVs, boats, granny flats have been renamed as kiddy’s flats. We have a mass exodus of mum and pop investors bailing out of investment properties because the costs have all gone up so much they simply cannot make them cash flow so in some areas that has built the prices of units down a little bit, but it has a hell of a long way to go, to get it back to being a worthwhile investment. In the last 12 months the government bought in 1.25 million immigrants that represents roughly 5% of our population they bought into the country just last year

[@Gio-ue8ps]

Same in the U.S

[@denicelopez9467]

Unfortunately it’s worse in the USA. 12 million immigrants that Biden encouraged to cross the border

[@HML-it7te]

Albo-our Prime Mincer is a clown and woke as hell. They are knocking mining developments left right and Center. Typical socialist woke BS.

[@grimaffiliations3671]

build more housing

[@steshaw3]

​@@grimaffiliations3671it's not possible to build enough housing

[@that1redhairedguy]

Todd keep up the good work. I have been a long time viewer, loving the podcast. If you keep telling the truth KZbin will demonetize you. If you decide to move platforms, Im all for it. I will follow you.

[@SachsRealty]

Thanks for the support 🙏

[@reneeclark-johnson7703]

I know prices in my area have doubled tremendously; the avg home price is $800K from $300 K. The home market is going to crash; it’s inevitable, we just know when. Todd thanks for update regarding your videos and have joined the email list b wise I experienced the same thing; no notifications.

[@insanegixxerdude486]

Lower rates only make the payments easier temporarily. The key is to have lower home prices that will make housing affordable.

[@BlessUsEarth]

The key point is to make housing unaffordable. So, investors can purchase them in bundles, and then rent them out. Crazy time

[@insanegixxerdude486]

@@BlessUsEarth investors speculate and buy houses on margin. If all homes were priced according to median wages they’d have to compete with millions of people instead of other speculators that have access to liquidity. At that point the juice wouldn’t be worth the squeeze and they’d move onto another asset class.

[@grimaffiliations3671]

thats why more supply is the only way out. Most anglophone countries have ridiculous housing shortages

[@spudruckus7297]

​@@grimaffiliations3671that's because the third world is rushing into those countries because they want a piece of that pie. Housing, jobs, schooling, Healthcare.. Should all be prioritized for citizens first.

[@cat143143]

​@@spudruckus7297it's because the government decided to throw its inflation into housing. They know laymen can't understand that housing is a gauge of inflation and instead they would feel rich.

[@sanfordrund3679]

.5% of 500k is $2,500 per year or 200 a month. You moved the decimal point over. 200 a month is significant to most people.

[@1000miles2paradise]

@@sanfordrund3679 Agree on the $200/mo, but mostly just in the debt to income ratio side of things. That can make or break a deal I think.

[@EndCorporateWelfare]

At 20% down and not including taxes and insurance? How many people do you know that have $100k for a down payment?

[@isaacbarret3454]

Yeah, I was doing the math too! It is 10x the savings she quoted.

[@Stackoverflowdeo]

I think Todd underweights the seller lock in effect. Most folks who bought at least three years ago would have substantially less purchasing power today, so they can't sell. Inventory will be restricted until there's a mass unemployment event that forces selling.

[@annehaverhals1750]

The problem is life happens. Divorce, marriage, death, babies, jobs, family members need help, bad neighbors, bad HOA, natural disasters, expensive maintenance issues, etc..... When I was telling people that their house price is based entirely on low interest rates which can't go lower thus can only go up, meaning their asset would lose value once the rates went up. Their response was they would not sell at a loss....but instead rent it, do airbnb, or get roommates. Wonder how that plan B is working out for people.

[@davidwilliams4498]

Mortgage rates has nothing to do with homes at least 30 percent higher then a few years sgo. Thsts the bubble thsts gonna pop.

[@ChurchhillWill]

My math on 1/2 percent change on 500k is 208 per month😂😂😂

[@sanfordrund3679]

I got the same answer

[@DavidMartin-bx6wm]

That definitely adds up over the life of a loan. 200x12=2400x30=72,000.00... that's a very nice car for comparison!! 😁😁 😂

[@eliot5220]

The rates are not the problem it’s the prices. That’s just being desperate praying for a low interest rate to be able to afford a mortgage.

[@eliot5220]

Why don’t people try to buy fixer uppers since they can’t afford a $500,000 house?

[@underleft]

​@@eliot5220Fixer uppers here are close to 500K.

[@stevenap4594]

Lowering interest rates isn’t going to do anything. This is what a lot of people have been warning about for a while now.

[@esalinas916]

The housing market in Sacramento is very depressing if you're in the 325k-425k range

[@coreymutton1104]

Inflation is out of control ATM. If they drop the market is gone in 25. The corrections haven't done diddly squat. I love your optimism.

[@amandao9869]

It's not right. Im 40 and may need a roomste. I make 57 an hour. Not fair. For real. Angry

[@cat143143]

Welcome to centralized planning. It's about to get much worse, looks like Harris will win this thing.

[@underleft]

You need to manage your finances better then. Assuming you work 40 hours a week.

[@amandao9869]

@@underleft wrong

[@charlespulliam4082]

This show is in the top 3 best shows on youtube neck and neck with first place.

[@SachsRealty]

@@charlespulliam4082 Wow! Thank you 🙏

[@underleft]

You must have a very boring life.

[@mjefferson371]

If people cannot afford to pay anything (fees or down-payment), then need to save more money because they won't have money for emergencies or repairs. Why are they trying to buy a home now??? They aren't realistic.

[@DaveUrbinati]

Taxes, insurance, and cost of maintenance and repairs need to return to affordable levels as well

[@williamblair2934]

Todd , Around 1:20:00 is why I keep listening to you. Honesty is more valuable than currency. I am not a high volume guy, but I would not touch a house at these prices. When a home was 100k, 10% was a fine interest rate . At 00k plus, these 5-7% interest rates are not wise as a buyer. All that you talk about including Property taxes, insurance, up keep of home will destroy families. I personally would not loan money at 12 % for someone to buy a house now because real money( gold) has shown us the devaluation of currency. In paper, my physical gold has increased 19-20% this year so far. Gold prices and the slow down in the real estate market are the true canary in the coal mine. Act now, preserve your wealth and wait for the houses to drop at a minimum of 50-60%. I see them going lower than that due to property taxes and all the above mentioned. We will see if I am right .

[@Rpp_808]

Agents pushing for multiple offers to remain are welcoming AI to replace them

[@sherri1999]

I look forward to all of your videos. Great insight and passion for integrity!!

[@SachsRealty]

Thank you!

[@DreSnow-gj9ks]

Rates are going up. Nobody’s going to buy 30, 15, or 10 year U.S. treasuries or bonds at even these low yields., not even your grandma. The market is demanding and Going to demand higher U.S rates going forward.

[@JohnDoe-np3zk]

HVAC and roofs are up that much due to greed of installers as much as materials going up. Im getting a new roof 9k

[@HODIUSDUDE]

How many sq-ft on the roof?

[@user-hc9lp3hb1r]

Sorry but some of the numbers quoted are extremely inaccurate. New roof for $40K?!? I just got a new roof (and gutters) in 2022 for $15K. And this is for the the SF Bay Area on a $1.2M house.

[@SachsRealty]

Okay 2022? And if you’re home in SF Bay was 1.2, it’s small.

[@john-robert1961]

I’m originally from Castro Valley, CA. I now live in a small Indiana town. Just had new roof, gutters and downspouts installed through my homeowners: $29,000.00! Bought this house for a total of $105K 6 1/2 years ago. My house is 1338 sqft.

[@richarddixon6352]

Used illegals for labor 😮

[@MysticHippie]

I'm in PA and my friend paid over 30k for his roof on a twin home. It's absolutely insane.

[@alyross2850]

I have a large home with 2 separate roofs. We spent about 25K this past summer on one roof with gutters. And that was the best quote.

[@EvySurvived]

I wanted to hear more from Rodd

[@LilyBelamare]

House prices need go down 40% and rates 4%

[@B_Y22]

The difference in monthly payment between a 6.5% and 5% interest rate 30 year $500k mortgage is $476. If you invest that and it compunds every month at a 7.78% rate of return (s&p 500 inflation adjusted return over the past 30 years) you would be over 600k more wealthy.

[@loulapointe8593]

5% to 6.5% on $500,000 is only $62.50 difference per month?? Seems like way more than that.

[@kt6332]

Great video Todd, I’ve been saying for over a year now that buyers are going to start looking at the homes for the quality of up grades and now it is happening. Problem is my house is completely upgraded except for the metal roof and if I sell I will be down grading to get into another home. Existing homes are still priced to high for the up grades needed just to get homeowners insurance and know one is willing to drop their price because they won’t be able to afford another home if they do. Plus new construction will not come to the rescue. Fully check out what’s happening to the lumber industries and how it all works. Not promising!

[@alyross2850]

I’m in my low 50s, am in a lot better position than most (largely because I’m 50😁). But the cost of home repairs has doubled, at least, in the last two years. Now more than ever, please don’t fall for the RE agent pitch: don’t rent. You’re paying someone else’s mortgage! You cannot build equity in a home if you can’t maintain it properly. Part of gaining equity is selling the home in better condition than you bought it. If you are moving money around to see if you can pay that mortgage, please do not buy right now. You will be house poor. Back in my day, at least if you were house poor, you really loved that house. That doesn’t seem to be the case today.

[@gioiapharo7433]

lots of Good Point Todd ……. on home cost seeing my neighbors letting things go …… we bought in the most beautiful neighborhood in town 20 years ago ….. Old Timers moved ….. younger people came knocking and are not taking care of their homes …… thanks new neighbors

[@jsd354]

Homes will sell if three things come together. 1. People have a steady job 2. Buyer is comfortable with total payment (PITI) 3. Buyer has enough savings to complete transaction. Interest rate nor sales price have anything to do with the sale for 70% of buyers except for cash buyers and those with psychological problems causing mental blocks. If sellers, builders and suppliers manage their greed and rates don’t exceed 8% the buyers will come. The dark horse today is the local government taxes and the homeowners insurance both of which can bring down the deal. 24:28

[@gregspeth7910]

I have never used an agent to buy or sell . I sought I ever will .

[@mjefferson371]

Interest rates are still historically low. People are used to easy money. When home prices were significantly lower, it was harder to get credit cards & loans. You had to put cash down. Over the years, banks, companies, etc. realized they could "earn" more money (through fees) with a higher throughput or #buyers. So I believe they slowly decreased the red tape & requirements to become a homeowner and investor.

[@alyross2850]

It doesn’t matter what the rate is if the homes are so much more expensive than people can afford. When we had much higher rates, homes were exponentially cheaper.

[@MrEdWeirdoShow]

There is only one way to stop any housing crash - PERMANENTLY CANCEL ALL PROPERTY TAXES. Otherwise, you're just bobbing up and down the market, spinning your wheels.

[@williamblair2934]

At 1:58:00 Judge poor character Todd. Bottom line if you have poor character, you will make yourself out to be a victim in order to justify anything. At minimum, The proper thing is to go to the lender and try to work out a better payment plan to honor your loan. I have talked people out of buying a home from me because they were too stretched. Always be willing to not make money to retain integrity. Thanks for doing that

[@therondrayton298]

Lower interest rates will cause an even greater increase of homes on the market due to sellers who have been waiting to sell due to the high interest rates. It won’t necessarily cause lower supply and higher prices.

[@skyyefinance]

The change in monthly payment on a $500,000 house with 20% down from a 1.5% reduction in mortgage rate is around $400 a month, not $60.

[@lisaassadi2750]

Still too high for most working Americans!

[@Matt_K]

Back to basics talkng about real estate instead general economy with guests, albeit great guests.

[@SachsRealty]

Just keeping it real ✌

[@Ella-Bella2024]

Great show! Rodd was wonderful! I enjoyed both guests tonight!!!

[@SachsRealty]

Thanks for watching and commenting 🙏

[@cgorman31]

Really most ppl looking at 500k in my micro are priced out since they are approved for only 150-180k in tn

[@kozmospaces8032]

Bc rent is over $5 k a month here. It’s getting bad. And I’m both a mlo and an agent.

[@ericobrien1977]

The biggest problem is that the price of houses has gone up by nearly double what it was pre-pandemic. This wouldn't be so bad if wall street was precluded from being in the housing market. ..Which started with Obama by the way.

[@cgorman31]

Colorado Springs outta control at the five bases

[@kozmospaces8032]

I never ever said “date the rate marry the house” Terrible advise.

[@animir7631]

Please bring Pamela back on with uninterrupted internet for smooth audio, want to hear what she has to say thanks 🗣👂turning off her camera might help 😺

[@djibber]

I’d like to talk to you about your comments regarding student loans. You keep bringing it up but I think there is some information you’re missing. I work in student financial aid. Please reach out.

[@isaacbarret3454]

Yeah, I was doing the math too! It is 10x the savings she quoted.

[@kozmospaces8032]

Your WiFi is not working Pam. There seems to be info missing. You keep freezing.

[@naturalhealing9970]

Northern IL and Chicago area - still no inventory!

[@KareeMcCollum]

In Oregon they passed a grant for Hispanic non citizens. The state of Oregon will give them $30K for a down payment.

[@doitjack8400]

@@KareeMcCollum what a travesty

[@travisashimself2356]

Just do high intensity cardio on a stationary bike. No impact, you’ll get crazy fit.

[@sharonkowaleski1267]

Sense&sensibility will always prevail as Anericans juggle stupidity of hovernment policy! Go Trump!

[@sharonkowaleski1267]

I capital assets whether liquid cash realities combined with rental or commercial realestate investments eith or combined portions with family. Build your own wealth- retirement is not easy street!

[@sharonkowaleski1267]

Teaching Millenials sacrifice of long-term jobs In Order to do what they seek in jobs! Echo-Boomers settled for smaller/ condos living incase retiring parents need it. A swap for paying inheritance Tax! Stable future possibilities and freedom!

[@sharonkowaleski1267]

Military contractors and now likely retirees leaving behind small state policy for better Deals

[@cgorman31]

Lower rates = Rising Prices Higher Rates = Rising Prices Lowering Rates = ?? The data doesn’t match the traditional scenarios More likely the qualified individuals have been tapped blood to turnip and there is going to be a downward trend or stagnant plateau for years to come… the rates won’t matter because they accelerated the costs… 80-200% increase in home prices where historically the average median increase was between 3-8% where a majority had 5% equity growth. Now look at these fools taking out HELOCs and a lien is against the originated mortgage. So allot of down spin… as a sideliner, qualified buyer, pre approved. I’m just front loading cash annually and if the costs plateau in four years I’ll have saved 150k+ and basically lowball owners that dilapidated their homes by not maintaining them.

[@user-wq7yc2om3d]

Just bought a house in PA. We had been looking for 18 mths. Price reductions are only happening on homes that need updated/alot of work. Updated homes in decent neighborhoods are selling in days at asking price.

[@shanerogers9386]

Did you pay double what it was 2-3 years ago?

[@user-wq7yc2om3d]

We paid 55 percent more than they bought it for in 2017. They made a lot of improvements though. New roof, furnace/ac, flooring, 2 bath remodels etc

[@shanerogers9386]

@@user-wq7yc2om3d you did pretty good compared to what people are asking these days. And considering the amount of work done. Congrats to you.

[@stevenap4594]

Something tells me you don’t work in finance 😂

[@shanerogers9386]

@@user-wq7yc2om3d congrats on your new place!

[@cgorman31]

Let’s go Todd get fit

[@SachsRealty]

Let’s go 💪. Appreciate the support. You’ll have to tell me in the coming weeks if I’m doing a good job. 👍

[@JL-OnwardandUpward]

Prices are not coming down any time soon Todd.

[@SachsRealty]

It’s already happening. You’re not looking.

[@shanerogers9386]

Seeing flippers taking 200K losses on both houses and condos here in palm beach county.

[@stevenap4594]

When will they come down?

[@DreSnow-gj9ks]

@@JL-OnwardandUpward agree……prices, inflation, interest rates are not going back down. Long dated government treasuries and bonds are auction failures, they’re not getting takers at these rates, nobody except the u.s government is buying these, aka money printing/inflation, to fund day to day op’s, it’s going to get really bad. Soon, nobody will buy the short dated stuff. The United States is bankrupt. The states are bankrupt. The local municipalities are bankrupt. Anybody wanna buy a U.S. Treasury or Bond? It’s a legit question, who would???

[@LaJulieOrtega]

Where is his co host? The woman? Sorry I forgot her name.

[@thethinkingmansgame5050]

Rates do not need to go down!!.. that would not be even in the top 5 to fix home prices and affordability

[@Bill_Fold4233]

Or can a housing crash stop lower mortgage rates? After all it is a 🤡🌎

[@PolishprinceJG]

Damn, I know people in their 30s and 40s that have good jobs but gave up on this pathetic marketplace and are living at home with their older parents to save money for retirement; what's the use of getting scammed now. Old Social norms drive these problems and feed into the frenzy of buying or settling down with the wrong person when they shouldn't. It's a free country; people should do what they want, not what the old culture wanted, to make a few industries rich.

[@kozmospaces8032]

lol. Try mortgage license!! It’s the equivalent of a bar exam with all of our laws. I have both licenses and that’s 80 percent failure rate passing the test. Ohh boy that was tough. 😮

[@cfoster6804]

This was a good one!

[@dyrectory_com]

Lower mortgage rates for how long.... be careful of bait and switch 🦉

[@bencolandreo708]

Another great podcast. Not you Todd, but many have been overly focused on Int Rates while falling for phony jobs reports. Yeild Curve un-inverting portends accelerating job losses. Different than GFC, now people have a lot of skin in their house down payment. Might get really ugly if real estate correction eats their equity (nest egg) first and credit cards maxed out. Consumer spending could plummet and hit to the wealth effect could sink real estate badly.

[@SachsRealty]

Thank you 🙏. Yeah this bubble really got out of control.

[@bencolandreo708]

@@SachsRealty and when I said phony jobs reports, I did not think they were near as phony as we learned yesterday.

[@jimallen833]

its all over sell everything

[@bobconder3163]

Bad neighbors should be at the TOP of the Checklst ‼️‼️ Get out of the bubble of the house you are looking at and walk down the street

[@JohnDoe-np3zk]

Are there any really great neighbors?

[@adimoron007]

I love the show but the math 😂😂

[@SachsRealty]

Come on 👍

[@vickiehat1074]

No will not

[@brianrozarto7601]

Hey Todd, you may like this one as I hear you talking about AI in your shows. The new released Alien movie brought back an actor (Ian Holm) that's been dead since 2020!! So you talk about the Volvo commercial, just imagine this! They can create actors/actresses too.....AI should NOT be downplayed like your recent guest did last week. We aren't talking "vacuum cleaners" brother!

[@SachsRealty]

Exactly! 💪

[@Burntbranchcreekbees]

The answer to your question in the title in NO!

[@cgorman31]

Cant deny the math is not mathing

[@dyrectory_com]

Lower mortgage

[@MPSaver]

Todd is not suicidal…😅

[@davedrum5752]

She is horrible at math, unacceptable

[@VR_investments]

Is that Pam from the office

[@alyross2850]

Almost.

[@sanfordrund3679]

I love this channel, but y'all need to tighten up the math skills

[@SachsRealty]

😛

[@OlsonCox-uu7ob]

Way u don't like ur new president ?

[@doctorpdc3096]

Well organized direct delivery of buyer. seller, broker issues, information help one decide USD options facing real estate, property, retirement investment. It may be outside the presentations to expand and so integrate global affordable, climate friendly, retirement property options so all I can do is suggest investigate global real estate internet video connected, broker, buyer. seller business transactions application from registered, verified, certified, from global multiple listed agent, agencies listings.

[@williamlopez6606]

Could you please make your videos shorter?

[@OlsonCox-uu7ob]

Well im broke wst Americans eat my money for therb future 😂

[@user-vv2yr9ln9m]

More lies from you 🤨

[@kozmospaces8032]

Who? What part?

[@williamblair2934]

Todd , Around 1:20:00 is why I keep listening to you. Honesty is more valuable than currency. I am not a high volume guy, but I would not touch a house at these prices. When a home was 100k, 10% was a fine interest rate . At 00k plus, these 5-7% interest rates are not wise as a buyer. All that you talk about including Property taxes, insurance, up keep of home will destroy families. I personally would not loan money at 12 % for someone to buy a house now because real money( gold) has shown us the devaluation of currency. In paper, my physical gold has increased 19-20% this year so far. Gold prices and the slow down in the real estate market are the true canary in the coal mine. Act now, preserve your wealth and wait for the houses to drop at a minimum of 50-60%. I see them going lower than that due to property taxes and all the above mentioned. We will see if I am right .

[@kozmospaces8032]

I never ever said “date the rate marry the house” Terrible advise.