Real Estate Market Trends Part Two

For thirty five years, Cindy Stumpo has been a female home builder with a passion for design, a mastery of detail, and a commitment to her crack. With daughter Samantha Stumpo by her side.

I don't need my whole family on a date with me. That's a good note. It's goddamn weird. See.

Stumpo Development is the only second generation female construction company in the country.

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Cindy and Samantha welcome guests to explore the world of construction, real estate, development, design and more.

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And welcome back to Tops Nails on Wbzina's radio, and I'm here tonight with Who I.

Am Sean Pinotian at Rate I'm a mortgage one officer.

I think we had last week. I think you did a two part of it. We're too part of right, Yeah, okay, so I'm you audn't know that that this was a two part of And if you missed last week's go onto the podcast at iHeartMedia and you can play that.

Okay, And I'm nick Leagris also back and thank you for having us back here, Cindy.

Okay, So we had questions from last week that we didn't finish, especially one with mister Jonathan being over on chatter Chatter Social Audio. If you don't know what that is, go to your app store and download Chatter Social Audio and then call me from an invitation to get you right in. Okay, boys, the rest of your people you have to figure it out on your own. Okay. So, bing, what were you asking? Can I have that back?

You know, put.

Them the mic, give me on the mic the other day.

Yeah, we had a lively discussion the other day on chatter. You were involved in grand card on and others were involved, and.

So you're cutting out and it's a trap.

Banks invented single family homes to lend money.

So what you're saying was it that it was a trap to be trapped to a mortgage on your house? Okay, I think we got the points. Yeah, answer that question on that please.

I couldn't disagree more. You know, I think, like you know, like I was talking about last episode. You know, most of the wealth in our country is in your real estate holdings. Like if you look at your average net worth of any individual United States, like seventy percent of

That, Okay, depending on what state you're in, totally because we not okay, no, we get ten thousand dollars off. That's it.

Black tax are sell your primary residence and you avoid capital gains to.

Station. Okay, yeah, all right, but just I want to back up for thirty seconds. I do understand to a degree, specifically about the product of a single family home because I come from Europe, and where I come from, housing is more dense because in Athens, land is scarce, so everything is three to six story small apartment buildings, and it's normal for a family to be raised in an

I mean somebody in a luxury luxury let's get the thing there.

But but what I mean is somebody that was in a three bedroom home that normally would not have to sell their housing product buying the next product just because money was cheap. Yeah, So to a degree, yes, home ownership a million percent, that's the that's the path to wealth. But single family home ownership is luxury to a degree.

I disagree, okay, and I'm gonna hear I'm gonna say this to you guys. Okay, Jonathan, we hear you too, but hear me out it Only if you went back seven eight years ago and you told me stop buying single families and ranting them ub we're going to make money. The old timers would have laughed at you guys and said, yeah, you go buy the single families. We're going to buy the units. Okay, we're gonna put up one hundred units, fifty units to twenty units. You're never getting rich off

Oh yeah, I mean, I agree with you one hundred percent. Like there, the construction of homes, there's a million reason. That's one of the reasons. The other reasons it's massively expensive to find and buy houses and land.

You hit the trifector. Yeah, it's called we're paying too much for the land or the tear down here right, because we don't have and we're not like I said, we're not on in Arizona, when not on Texas. We're in mass here, but we're in thirty three states. So we talked to everybody. So you're paying too much to purchase, you're paying too much for product, you're paying too much for skilled labor because you need the skilled labor, right, and now you're paying too much for interest rates that's

When people started building these projects two to three years ago, their rates were three and four percent, correct, Now the carrying costs on those constructions percent. And now that they've taken out all the draws and they've maxed those things out.

Okay, let's talk about that. Now they've taken out all the draws. Now, here's where the problems come in. They go look for another deal, so that deal carries the interest on this deal. And here's where these builders get into trouble. And then they go the third one. Oh my god, if I've seen this movie so many times, it's scary.

How many unfinished products you see for sale right now?

People for many and what's going to happen? There comes your bad times coming ahead of you. But once you start buying another product using that construction loan money to pay the juice on the last one, and then you go into the third one and now you're using the third construction law money to pay the first one, the second one till the bank goes hold on till you move another product or two. We're not gonna lend you any more money.

What saved everybody's butt, though, is that inventory has been short, right, so like there's been more demand than supply.

And that's a lot for sales signs now sitting totally.

Well, that's what's changing now, is that stuff starting to stuff starting to inventory is creeping up, and all of a sudden, the bank is starting to get a little tighter too, starting to get nervous.

Let me tell you something, You've better be very strong with a bank right now. Now. Jonathan Ban does what you do, so he's in the mortgage industry too. Bang, you're still there.

Absolutely, Cindy. Definitely, banks will definitely tightening up.

Okay, hold on, I'm gonna I'm gonna pass this over to you so you guys can hear each other on speaker.

Go ahead, man, they'll definitely tightening up now.

And there have been a lot more strenching with the money, so that that holds the problem. But there is some more inventory, but there's still there's.

Still a demand out there.

I mean, we are still six and a half seven million homes short, and so yeah, there's definitely a problem. But once again, I just want to pivot back because it's my fault with my WiFi. But I you know, I just think that the American dream home ownership, you cannot start. You cannot begin generational wealth without home ownership.

You know, and agreed, agreed o.

People to abandon.

You tell people to abandon that dream, especially people that are financially literate, you know, because most Americans don't have the literacy, the financial literacy that that we should have. But you have someone prominence telling people that it's a

You know, if you're missing the point, you're missing the point again. And I'm gonna say it again, no you're not. If this breaks and that breaks it's not your responsibility when you're rankeding. But hold that thought. We're going to break. I'm sitting stumbling. You listen to Toughest Nails on w BZ News radioly right.

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Running down the Road the WAD. I got seven women on my the Water to the Wall and welcome back to Toughest Nails on WZ News Radio. And I'm Sitny Stumpo Toughest Nails. So we've got that one, didn't we Yeah, Toughest Nails. That's the name of my show. Yeah, Okay, go ahead, guys.

I'm shot from Rate and nick Leagris Milligris.

Okay, and we got bang online with us. Go ahead, Jonathan, Cindy, I understand.

You're right, but there's home warranty. You need a warranty from your utility company that.

Will allow you.

Now the GAFF program, Now, the GAFF program waste of money. Don't do it. Let me tell you something. If it was worth doing, I'd have the company. I'd own it, Okay, maintaining my own platinum, gold and silver.

Yeah, I mean what Cindy's saying is right, Like you know, there's massive responsibility when you home. And by the way, I'm one of those people that believe that I'm advising my clients, coaching my clients up into getting in the housing market and figuring it out right, Like it's not easy, but there's a lot of different avenues and things you got to do. But she's one hundred percent right, like

You find and you're an endewser, go find the plumber right now.

Yeah, it's crazy. Okay, it's not hundreds of dollars. It's generally thousands of dollars and sometimes ten thousands of dollars. So you know you have to when you enter this league. Now you have to be able to plan for all those things, and you have to have the resources to be able to handle it. I also don't think that you scare you off because like you're always going to come up with the reasons as to why you shouldn't

And stop waving home inspections crazy. Stop doing that. At least you know what you're walking into when you're purchasing something. Sammy did not waive one home inspection. She wouldn't do it to a client's do all the craziness. She wudn't do it, because you don't know what you're buying.

Yeah, I mean we saw a lot of crazy stuff, especially, I mean even today. I mean, you know, obviously I do business all around the country, right, Generally the markets that I work in are up and down the coasts, and so they're all hot markets, right, But people are you know, I mean, they had to do what they

And that's also a little unique to Mass two sets, because we are a buyer beware state or a seller.

Doesn't look at all the lawsuits other.

Parts of the country. A seller has to disclose, a seller has to do a mandatory seller disclosure, and there is something else at least that somebody can rely upon talking to the so to bring this kind of full circle to the other parts of the country like Massachusetts.

But they do, they do. And yet how you find out, oh, you got a water leak, No we didn't, then we research it. Well, how come you pay from your insurance company?

And just to stick on that right now, Another barrier for a lot of these buyers is how difficult it is to get homeowner's insurance.

Well, if they get it, how expensive these insurance companies are now colluding with each other, and they're labeling properties as high risk and consumers.

If you have bad credit, you're gonna have a harder time getting good homeowners insurance, even if you can get a mortgage.

And to that same point, if that home had a prior claim.

By the way, guys, this is across the country. This is not just the state.

Okay, just here, And if if that home had a claim on it previously.

It's gonna be like cafects.

You got it. And one of the things that people don't realize what insurance claims are. Insurance is a contract, which means you put in a claim because you had a leak from a toilet and they give you money to replace all the floors. That doesn't mean you have to replace all the floors.

And most won't and most won't and they'll just use they'll they won't even change the blue board of whatever they're using dirt. We use blueboard and plaster, but some say they use tape and seam right, and they won't, and they'll they'll just kill it with some kills.

You got it, Okay, take their money, you.

Paint it, take the money, keep it and you got mold grown back.

Put that house in the market for sale and make it someone else's problem.

And it'll be your problem and they don't have to say it at all. So I hope you're understanding what we're talking about right now. Do you have any other questions on Chatter, Jonathan, do you have any other questions on Shadow?

I don't see anyone with the hands Rob, but Sindy Yaga. If I may, guys chatter social app.

Let me let me, let me go plug yourself in. Go ahead, see I.

Said, I said.

Chatter Social is app where you can actually communicate and just have these kind of discussions with the people all over the world. It's a great app. As chattlesocial dot io downloaded. We speak to people like Cindy Stumpo grand Cardon and many others on a nightly basis. So if you can get it, if you can get over here, please get over here.

So well, I'll bring all my boys up and we all come in. We're gonna come right in today. We're going to ride up on all you guys. Okay, we're gonna put you guys to sleep over there. But okay, let's go. Let's go to a couple of other questions that we have here. Okay, not you guys have no questions. So we're going to go back into a schedule the program of what I want to ask you? Where do you think the market's going in the next six months to year?

So I mean I think the next six months of the year is going to get fueled by lower interest rates. You know, the Fed came out, uh jerme. Powell came out a couple of weeks ago and said the time is now, directions clear, we're going to start cutting rates. So I think we're going to see three rate cuts this year, starting next week.

I think next week point to five.

I think point to five. I'm hoping for a half. I think we need a half you know, I think I think.

We always caping. If you're going to join in the conversation, do me a favor. Hold him on the mic, hold that phone on the mic. Good, just you know, no, no where he talks, what's that You don't have to even bring him up, Just so no, you hold him on that Mike's going so he can he can give right, he'll be able to hear, go ahead, they can converisate, go ahead, bing what'd you just say.

I think it's definitely gonna be a half point, I mean point.

You know, look, man, they wait too long, they.

Wait too long to do this.

They cut they not to a half point, you know, I might I hope it's a half point. I think it's going to be a quarter percent because the Fed's been pretty transparent. They've been pretty you know, Jerme Powell and his crew have been you know, hanging back, and they so they're lead. They're signaling a quarter percent rate cut. If they did a half percent rate cut, that means they're gonna be way they're they're way more afraid of the labor market weakness than we've seen recently. They seem

We are, okay, let's talk about that, guys. They have inflation under control. Besides the lumber Yeah, we're in my industry. Has numbers dropped? Concrete just went up again two weeks ago.

So yeah, I mean, look, I don't think things are going to get cheaper, right They're everything in this room right now, everything.

Look at all the look at the keyboards, look at everything that's going on in the studio. Let's say going to come in here and redo the soundproofing. Let's say going to come in here and redo anything. It's thirty five to forty percent more than twenty nineteen. Couldn't numbers are still running there?

Yeah, so what you know, the growth rate of inflation is what they're measuring. So it was up to like ten percent a year before. Now it's down to like, you know, just under three percent. They're trying to get us down to two. So anyways, if you believe them, if you believe them right, it's you.

Know, I'm not a conspiracy press.

Look, the thing I've learned over the course of the last year is like, I'm blown away by how wrong they've been with the numbers and how misleading it's been, especially in the labor markets. But let's just say they cut three times this year. They're signaling four to six rate cuts next year, so you could see every time it doesn't matter. And Cindy, you've been doing this longer than I have. You've said that a couple of times over the last couple of weeks. However, every time.

Rates come down, because getting old is not fun, and unless it's like sticking up everybody's butt of more knowledge, every.

Time rates come down with it, you get a huge inflection, like huge infusion of buyers because people get excited rates come down. It means more buying power, more affordability, bigger budgets, bigger reach, and that demand is only going to get increased. Like every time rates come down by one percent, about five million more people get into the housing market, right,

Okay, so let's talk about that for a minute. Yeah, you see a slow down in Florida already in certain areas of Florida. Let's talk about that, right, people understand Florida. Maybe most people don't understand Massachusetts. Whe people go to Florida, they vacation blah blah blah. Yeah, there's many areas of Florida, correct, and products not selling.

Mostly condos though that's a combination of a couple of things in my opinion.

Go ahead.

We're also seeing it in California as well. Right in certain parts of California.

We want to go to California.

Right now, people are fleeing San Francisco, correct, I mean the tech world is fleeing from San Francisco from Miami as crazy as that is the problem with Florida is Florida does not really have its own core industry and core base besides tourism hospitality. They have hospitality in tourism. So what happens the Cindy's of the world. They're successful thirty year careers from up here and from Philadelphia and

Florida is the playground for the rich. Now you do know that, right?

Oh yeah, that's it.

All the locals in that sunny Owl's Hollywood Hallendale, North Miami Beach area have been pushed out del Rey Boca. They're all going, They're all they can't afford the locals can't afford to be there. So that that that bothers me.

But the government is trying to do some things. They're trying to bring tech, they're trying to bring industry because Florida does have so many other things like no state income tax, good weather.

Death taxes, all that thought. I'm getting the clock in my face. This is city stumble. You listen to the toughest nails on Busy Its Radio ten thirty will be.

Right back, sponsored by Pillow Windows of Boston, Next Day Molding and Kennedy Carpet.

Spots, Flo.

And welcome back to Tomb of Nails on WBC News Radio ten thirty. We're here with.

Sean Bnocci in that rate, I'm a residential mortgagean officer, and.

I'm gonna throw around the new acronym attorney nickolgris not just Nick Legris here, so the staff and the listeners know that that your attorney.

Why does they give you more credit?

No?

Just are you charge more money when they call me?

Oh okay, I like that. And then we have my beautiful future Donald in the studio Angelina, that's Angelly, let's Chad's go from Okay, that's from playing with all the audio in John, Where do you stand what we're talking about right now? Bing bing bong, you're up there.

I'm definitely here, Cindy, Like I said, I told you a halfpoint. You know, I understand what's going on down to Florida. That's happening any and everywhere because as we get more technology and we're able to develop it, I mean development technology has grown and they're even build a lot more. I mean, yeah, pushing people out. I mean that the land's valuable down there, closer you are to the coast and that climate definitely. I mean Florida used to be the cheaper alternative to California.

Now Florida's again.

In Florida was where we all went to right before we go to the nursing home and then before we die. Okay, let's call who it is.

Right.

Look at Massachusetts, John, listen to this. Massachusetts has lost over five one hundred and fifty million dollars because of people now leaving for Massachusetts because just that four percent millionare tax hike going down to Florida. Imagine how stupid that was. Right, you lost five hundred and something million dollars in tax right.

Believe in California and New York Massachusetts. Yep, yeah, they're going to Florida. They're going to.

Touch the demand is down in Florida. Yeah, and US Northeast. Northeast people, we don't want to be at West. We want to be between Miami North, Miami, Hollywood all the way down in Naples. You know, we want to be on the coast. We don't want to be West. We don't want to be in and we don't want to be in Tampa. That's not the game we like to play in Boston. We want to be right with the actionists totally, no matter what age.

Yeah.

So, John, would you advise to your clients right now, if they were to buy anywhere, just tell them buying their own hometowns and say, I have a thing that you buy where you know, stop buying where you don't know your first investment. Buy in your own backyard so you know what you're doing and knowing how to play the game. John, your opinion, and I agree with that one.

The problem with that is if you're in California, the average single family right now is bout eight hundred thousand dollars, you know, so you know it's going to be tough to buy there. If you're in one of those markets in the Northeast. When you look at New York, Jersey, Connecticut, Massachusetts, you look at those areas, I mean, it's it's pretty tough to find a deal. I mean, fortunately, we're close

And what do you do when you get there? What do you do to make a living in the Poconos? Tell me what are you doing? Yeah?

You know does what technology kicks in?

All right?

You can work from anywhere, now, Cindy, And that's the beauty of you know what COVID did.

Okay, let me hold Let me hold you there. I can't work from anywhere. We got a lawyer that's going to show up to court right and see a judge. You don't get to zoom at all anywhere? Okay, but you did, and you do how old you know for three fourty three you're not going in front of judge at all?

You know the trans actual lawyer I pushed paper.

From Okay, Well you can do that from anywhere.

Good point.

And you can run your mortgages from anywhere.

I can work from anywhere. But you know who doesn't want there people working from anywhere anymore? All these companies that have built out these huge corporate headquarters and they're pulling everybody back in little by.

Little as they should. Yeah, as they should.

You know, I don't believe anything.

You're not going to the office. I think you performed better in the office. I think you need to be in the environment. But America got lazy after COVID.

Yeah, and you know that was you know, I had a lot of clients move all over the country thinking they could make Massachusetts or New York money and live somewhere else. And all of a sudden, now it's like slowly like their employers like, sorry, you got to come back.

You know how about the guys that are making here's the best one. You're making all your money a Mass, but you're claiming Florida residency. Sorry, buddy, you got to play pay Mass taxes. You don't get to avoid that unless you got some type of management company you set yourself up. That's another one. If your mind's coming out of mass you're taken six months in a day in Florida, but you're making a living a Mass. You're going to pay mass taxes here.

You know what? You know what the big I agree with you. You know what the big problem down in Florida right now is those those thirty and forty year old condo buildings. You know, they're getting crushed right now with special assessments. They're passing all these laws down there where they're.

Well, yeah, thee yeah, need to.

You know, that building collapsed in twenty surfside collapse. And now they've changed all the laws down there in terms of structural integrity of these buildings. Now, all of a sudden, you got somebody buying a three hundred thousand dollars four hundred thousand dollar condo and they get hit with one hundred and eighty thousand dollars special assessment. What's that place worth? Who wants to take on that assessment?

Nobody?

And then then it drops And that's what's happening. You know, you're seeing the newer construction condo market down there actually perform well.

Good, go look at the Equilina, Go look at the Amorni building, Look at the Porsche building. They're flying out.

Yeah, but the stuff that's thirty forty years old sitting though. There's there's inventory piling up in these places because they're all worried about the special assessments they either have already found out about or that are coming and they're going to devastate their prices over there. So it's it's a tale of you know, Florida is interesting because it's like two different markets, Like the stuff on the water, the

Correct. Yeah, You'll see a sixty million dollar home fly off the market totally, and an eighteen million dollars sit there, and a fifteen million dollars fifteen million, and then something comes on the market for fortyen flies So there is a price point down there. I noticed last winter that was a slowdown. It was between that ten and fifteen like speculation.

Those are such huge numbers too, is I mean no, because.

That's about no down well, first of all up here, Yeah, there's no one else playing in my sand box. Correct about it on speculation. But now I take the same product I do and go into the forty million down there. Yeah, so you see the difference. Yeah, And I'm going to make the same money with them here there. But me personally, if I had the opportunity to go make my life down there, but I don't want to start all over again.

Are you actually are you? Are you ever going to stop working?

No?

Okay, when I die, I thought I just wanted to do the class.

When I die, Okay, got it. When I die, when I don't have two arms, two legs, I can't breathe anymore.

Someone asked, how do functuations and home loan interest rates impact monthly mortgage payments for buyers?

Yeah, great questions. So like, all right, somebody, uh, last year, at this time, like I said, rates are about eight percent. Today they are about six percent. That means our clients have, like you know, anywhere from depending on the price points, anywhere from like seventy to one hundred and fifty thousand dollars more in buying power. Right, So, like when rates come down, people's budgets increase, they get more buying power,

Let's go back to these rates, these rate cuts, right, Yeah, so Jonathan is thinking point five zero, I'm thinking point twenty five, Jonathan, I've told you that before. Now they take a long time to knock them down. We get a problem if they knock these rates down to what we give it the number again.

So I think the Fed's going to cut rates in almost every single meeting the rest of this year and into next year.

That'll be four meetings, three meetings.

Left this year because they don't have one in October. They go September, November, December, and then they'll have I think it's eight meetings next year.

So you think every meeting from now till next year they'll cut them down.

I think they're going to cut I think they raised.

So we had how many hikes that we want to We.

Had eleven hikes, right, So the FED funds rate sits somewhere between like five and a quarter to five and a half today. I think they're going to take it down to three and that still kind of keeps the economy moving, but it's it's still a little bit restrictive. So I think the thirty year fixed rate lands in like the like the and that's what that's what your average home potential home buyer consumer talks about. Where's the

You know.

So I don't think I think there is going to be a recession. I don't think the housing market's going to participate. And I think the housing market will stay strong through it like it.

Hits works what the stock market.

The stock market will pull back for sure. That's where you're gonna see it. You're going to see consumers.

Guess what with seeing the real estate market pulled back before the stock market this time, that's unheard of. We've always had a market crash, in a real estate market crash coming year afterwards, we've seen the market staying strong with the Nasdaq, it's crazy every and by the way, they beat out real estate guys every year, right, they performed better than real estate guys all day long. But when you look at this way, I think it's going to be the real estate market. I think the real

Stress?

Your stress?

Okay?

How I've done? That's crazy, right? Think about a young girl twenty three years old going impressive. Yeah, I don't know what's super impressive. I just think I was young and dumb. I were going off to break and would be right back. I'm Sidney Stump toff his nails on WBZ News Radio ten thirty, will be right.

Back, sponsored by new Brook Realty Group, Boston. Would smaller Insurance World Auto Body and Tasca Drive Auto Body.

One of these, one of these crazy.

And welcome back to Toughest Nails on WBZ News Radio ten thirty. Now I'm Sydney Stumpo, and we're here with what's your name again?

Lena Grillo?

You sure, yes, you know you're really pretty.

Future Lena Stumpo.

Okay, wow, wow, Okay, there we go.

I am shocked, but I.

Want you to stop checking out my future Donald. Okay, she is really pretty. You gotta give it that he likes men. Yeah, okay, we're better than that.

Okay, good every three. I got a beautiful wife and three three beautiful little girl.

There we go, makings down here, not a future Stumpo.

Okay, and I am shot pinocean at rate.

Wait, we forgot about your nigh right, Nick? You married?

I am?

How many kids too? How old?

Seventeen and thirteen?

Okay, good luck to the thirteen and you your kids are?

I got it. I got three daughters, twelve, nine and six.

You guys started really late.

I started young.

How young?

I was twenty five when I had my first born?

Yeah I was twenty three.

I was thirty two.

But you're Greek yeah, you Greeks to it young thirty two. You're thirty two. Yeah, you old fought.

I feel like I feel like I'm young.

I can hang, you can hang.

I'm not afraid.

Okay, I always wanted to be a young one. Stupid me for sh Take you your kids, and you take care of your parents, and you're taking care of your grand shouldern that are coming down the road. When is the time for me? It's time for me right now? Go ahead, Bing, you had a question, you want to stand subject? Hold that up there, and yeah, I was.

Listening to you and you guys are saying you're expecting a quarter. You know, I'm definitely thinking it's gonna be more than a half because they waited way too long, and you know, and you I thought about pulling back when I saw our inflation reports come out lately and seeing that, you know, it's the lowest.

Since twenty twenty one. But you know, I think they waited too long. And it's an election year.

It's an election year, and they're not gonna have a FED meeting in October. Okay, I think they're gonna go ahead. They're gonna pull the trigger and they're gonna do it.

Half a point. That's where the end of.

This month makes sense, at the end of this.

Morning, September. Yeah, yeah, yeah, so so John. You know, look, the last three times the FED has started to cut cycle, they've actually started with a half point. I hope they do a half point. I just think this FED has been so conservative.

Uh.

And I think that because it's an election coming up. I think because they don't want to appear political. I think they're gonna start with a quarter and they've been signaling a quarter. So I hope it's a half. I hope you're and I do agree that they waited too long to start cutting, and they have historically started with a half point. So I hope you're right that it is going to be half, but I think it's gonna be a quarter. And you know, for everybody listening out there,

Let's make something clear right now, construction loan money, unless you're very very strong with a lot of money in the bank, these guys are still paying nine percent.

Yeah, because those are all adjustable. Those will start coming down once the Fed starts.

Uh correct in the race. Yeah, correct, But they're not going to adjust enough right.

No.

No, a lot of guys got hurt when they went from three to nine and four to nine.

I think they'll be the.

Hard money guys that will be in the in the in the studio later. They just get anything they want, right because you need them and they're paying points and whatever. So where do you think, so, John, if thirty years start to come down to that number, people are going to stop pulling ms again. Will the arms be you know, I.

Think the adjusted rate mortgages are going to come down into like the high force. So like right now, the adjustable rate mortgage hold on.

If we get the arms back into the force. Now, I'm asking you and being your opinion. You might have a different opinion and you want to I would go for the four and I bet that the rate's still going to come down more.

They're not there yet. I think that the adjusted rate mortgage will start to cut down on the adjust rate right now still in like the high fives. Okay, yeah, so there's not a big difference between the fixed rates and adjustables right now, so's never been smaller. So we're seeing a lot more demand on the fixed rate mortgages. However,

In your opinion, First of all, you're going to take that fix. I mean, because the difference is spread is not too big. A lot of people got hurt playing that game. A lot of people that had funds, they took the just well it's taking a fix because.

They wanted to make more money, and in the end it hurt them hard. I mean when when when the rates.

Started going up, a lot of people funds are like in trouble as a result of that. So you know, I definitely think you should take the fix right now. And he's right, I mean, you're not seeing too big of a spread.

Uh.

Those those arms used to be they you see at least a point three quarters of a point to a point.

You're not seeing that now.

And but I think what But my question was when you do see them again? When you do not right the moment, when you do, what's the average consumer you think going to go back to the arm or stay with the thirty year?

They'll go with the fixed rate they'll if you're smart, thing, you're gonna tell you why.

And the mortgage industry, bad news is good news, and we certainly don't want bad news. The only way to race going to go around way anywhere, uh, is that we have a whole bunch of bad news. We had COVID, we had nine to eleven, We had Iraq, we had Afghanistan. We had so much bad news just hitting.

Us over and over and over again.

And so that's how we got to those historical lows because we had a whole bunch of litmea bad news. And so if you if you think, if someone's hoping that we're gonna get back in the threes, you're betting against the US economy, you're betting against us. You're betting for some bad news. That's what's going on here. So remember that, folks, bad news is good news when you're getting mortgages.

So you don't want your mortgage race to be too low.

I told you that's why I want a Democrat in office, even though I'm not. People don't believe this, but we make more money with a Democrat. People don't believe me when I say that, but we do.

But OK, we're one of the only countries in the world where you can get a thirty year fixed rate mortgage.

Let's look at Canada.

Yea, everywhere else is just right mortgages.

You know, Canadians they can't, they can't anything that's so on fear to them.

Yeah, it's just the way it is, you know. But you know they're not I don't know if they're complaining because I don't think they realize it.

However, Yeah, I jump into a lot of Twitter Canadian rooms. Yeah we are not Toronto, not Montreal. I tend to jump into those Canadian building rooms that they're builders, developers. Oh, crying like a bunch of babies up there.

So the market has changed.

But then I speak to people in Toronto Montreal and they're booming. So I don't know. There's always cry babies on markets, right, I mean, I'll take on market. I'll take on market all day long.

Yeah, even though we're a tiny little segment of the market.

Imagine, imagine we're.

Smaller than Metro Houston. Ok, just Metro Houston. It's bigger than the entire masters.

Yeah.

People always say to me, if I was gonna best my money, where do I go Sindy, Massachusetts. Totally come to Massachusetts. Okay, as as the gibs say, please come to mess we should play that song. But whatever, Okay, go ahead. Any other questions.

What about the ones that are just starting.

Out like you?

Yeah, that's like if I want to invest in property, pull the mic up and you get what I What would you suggest as in starting.

Okay, so let me put your your sister and brother small, your child's brother. What would you tell.

Rental properties, tourist properties out in Florida? Would you start out that way or would you suggest not starting out that way?

I would start up like I would start off with buying a place that you're going to live in, right, like the place that you can like move into, do some sweat equity, you know, obviously then you don't also have two payments, like you're making a mortgage payment instead of a rent payment, and you can just kind of

Like all these things?

You know, Uh so unless you have h unless you have a backing of bank stumpo.

Yeah, okay, well let's pretend we don't have a backing of bank stuff. Family.

Yeah. So yeah, but we have we have lots of we have lots of options, like so it's really important to come back. It's poor confident.

Life is very easy when.

You understand what your parents.

Poor parents get easy. You know that, because then the kids say, oh, okay, go to your mother. No, you go to your mother houses it it comes to me. Yeah, kind of the way life is.

So you know, that's that's where shut up over there.

You're talking about mortgage.

Yeah, what's your best advice? She's twenty six years old, he's thirty. Her question was simple, what was your question?

Your question?

Properties like we have interest in rental properties or they want your homes out and you know, say Vermont or Maine just so you have income coming in, or even like tourist homes for the parks down in Florida or California or where else.

So I actually I really agree with Cindy staid, you got to stay local at first with your first place you got, it's got to be easy to get to, and you got to know the market. You got to know your people that to help you keep that place up and running.

Okay, oh boy, Mommy stumpo has always is always wrong, never ever. Okay, Well we're going off to break. This is Cydy Stump and you listen Toughest Nails on WBZ News Radio ten thirty and be right back. Un come back to Toughest Nails on WBZ News Radio ten thirty.

Everybody, I'm shotping Ocean at rate. You can reach me at shot at rate dot com or on my Instagram at Shantvenocean.

That's s h a n t at rate dot com or my ethnic frames doesn't spell it out. And I'm nick Leagris at Ligris dot com, l I g r s dot com.

Lena Grillo.

Yeah, what do you do?

Lina?

I'm a closet designer for who Closets by Design, So how they reach you Closesbydesign dot com or you can do clauses by Angelina at gmail dot com.

Okay, is that the lous? You can speak up? Yes for sure, because you can We'll get louder.

That's right.

Okay, you're in sales. Now get louder. Okay, get loud. Jennifer Lopez say that. Okay, everybody, have a great, safe weekend. We'll see you next weekend. This is Cindy Stumpo Toughest Nails on WBZ News Radio ten thirty