Let's just have a meeting at 905, Michael.

Right.

You might want to think of a different industry.

So here, if you've got a 33-year-old first-time homebuyer, Right.

Obviously, they've had three or four at bats and they've struck out three or four times.

Right.

You might want to change things up a little bit and have some type of representation because the way that you're going isn't working out.

We got to go like this, Nick.

But you were going to say something on Saturday's show before we get back to the building thing, because you're in hiring mode, right?

Yeah, we're setting up the future of David Hochberg here.

I'm turning 60 on Christmas, and Started transitioning my guys who've been with me underneath training with me for the past seven to 10 years to kind of hand over the reins.

And we're just looking for and we've got a great system set up to do this.

So we've got capacity with the higher rates to bring on.

And we're looking for loan officers with one to three years experience who.

working at a bank or working at a brokerage that might not get the training.

So can we pick up where we left off? Sure.

Okay, back to the sellers.

Yeah.

The sellers are in a very, very precarious situation now because you've got elevated rates.

I mean, I mean, it's no secret the rates are solidly in the sevens right now, and I was watching Jim Cramer, uh, uh, yesterday, and he's like, "Five years ago, you know, you had a rate of, of 2.5%, and now you've got a rate of 7.5%," and he's true, and it's 100% right, you know? The, the 2.5% guys was just ridiculously low, and that was-

Sure

... you know, we all thought we were gonna die, and they needed to do something to stimulate the economy, so, you know, the treasuries were down at .5.

Now they're at 5.1 or 5.2 I saw today.

So there's your five-point increase.

It's higher than they thought.

Not good.

You've got essentially eight companies, Bob, that's keeping the S&P 500 up, those five tech companies that are training amongst each other and giving each other loans and bolstering their balance sheets and their revenues, and it's not good.

So when that party comes to an end, and it always does come to an end, go back to what happened with the tech industry during the 90s, right? The dot-com bubble, the real estate bubble, it all pops.

So- Without those eight stocks, Bob, the market would be down substantially.

And that leads into what you also mentioned.

Inflation's up.

Three-year

Thank you from Greg.

All right.

So, Greg, it's very simple, for me at least.

You can borrow up to 80% of the value of your home.

So as long as you're in the state of Illinois and the other 20-some states that Consumer Credit Union is licensed, they will help you secure a HELOC.

You would pull out a HELOC if you qualify.

for up to $320,000, which is 80% of Greg's home.

I know I hear numbers and my eyes roll back into my head because I don't know what you're saying half the time, but I do know you want to get a heat lock before you need a heat lock.

And we're stuck holding the bag, so to speak.

Yes, ma'am.

So you couple that with $4 or $5 a gallon gas.

You couple that with $7 a gallon diesel.

Last time I was on, we talked about the farmers back over in your neck of the woods that are just getting whacked because their cost to turn that field over and harvest all that crop has gone up exponentially, 25%, 30% because of fuel prices.

And that just comes right out of the bottom line, and that is going to be passed on to us when we go buy food in the winter, spring, and summer of next year.

So, listen, it trickles down, and the consumer's paying for it, and now you're starting to have reports of tightening of the belt.

Most are in the 200% to 300% range, but some at 400%.

Well, you're still buying it for

$4,000.

You are.

Right.

So the seller is going to net out $380,000 minus costs.

If you sell it for $400,000 and give a $20,000 closing cost credit...

Your basis is 380 minus your mortgage, minus your tax proration, minus whatever closing costs, title fees, and attorney mishigashi got, right? So if you sell at 380, you're still going to net out the same amount of money.

What's the foreclosure number like this day?

Well, you're still

buying it for $4,000.

You are.

Right.

So the seller is going to net out $380,000 minus costs.

If you sell it for $400,000 and give a $20,000 closing cost credit... your basis is 380 minus your mortgage, minus your tax proration, minus whatever closing costs, title fees, and attorney mishigashi got, right? So if you sell at 380, you're still gonna net out the same amount of money.

You're making your house more attractive to a buyer, which is basically what you have to do right now, okay? You need to put a lot of perfume on the pig in order to start moving these properties, because we're gonna start seeing inventory back up, and you're gonna have to make your property a lot more attractive than the same house down the street.

What's the foreclosure number like? Oh, my gosh.

I'm not a condo owner, but so is, is this, will this save money or is this more money?

It's gonna co- Most likely, 'cause most of the condos don't have 10% budget set aside, which is what they need to have now.

Now, in 100, in under 100 days, they need to have 15%.

Well, so what does this mean? It means that if you're in a condo association, you better get your heads out of your rear ends and start looking at your budgets and start making sure that you're in line with the new Fannie/Freddie guidelines.

'Cause if you're not, there will be lending opportunities out there into those condos, Ray, but it'll be at higher rates 'cause there'll be portfolio lenders lending into that condo.

So if you live in a condo and your condo association or your condo board or your condo management company has not talked to you about this, you need to contact them and start having these conversations now.

'Cause most likely, Ray, the condo association fees are gonna go up, and it's gonna make your condo less marketable if you're not aligned with Fannie Mae and Freddie Mac, FHA, and VA, 'cause they're all following the same guidelines.

Yeah, yeah.

So do they do this just to quell spending and try to get things in check?

Yes, yes.

That's exactly what it is.

Whenever...

So the Fed's gonna meet in October.

There's now a 70% chance that the Fed is going to raise rates according to C- Calci or whatever the forecast markets are.

Now up to 70%.

When was the last time you locked people in in the sevens?

What's going to happen?

Well, here, it's going to be an opportunity for us, right, because we're perfectly positioned to weather the storm.

Our loan officers have been trained to save and take care of their clients and stay in front of their clients.

You're still going to have the five Ds, Sean.

People are going to continue to have babies.

They're going to continue to get in debt, even more so now, especially with the tariffs and with the inflation that we've experienced and all this mishigas with this war.

It's costing people more money, so there's debt.

So you've got a big pickle here with the way in which we've relinquished what property rights are, don't you?

But, okay, but no, but, you know, things like tickets, things like transportation, things like that can put people behind.

Right, and getting back to the interest rates and is it going to impact me? Sure, it's impacting me, but listen, it's not about me.

It's about every single listener out there that was on a track to refinance because the rates were in the high fives.

six months ago.

That's a fact, okay? They were in the high fives.

They're now in the high sixes, low sevens.

So everybody that has equity in their home, that has debt, that was looking to get out of their six or 7% loan and to refinance to save some money, maybe pull some money out of the equity that they have, because that's the only money that a lot of our listeners right now have that own homes, is the equity that they've built up in their home.

I promise you.

Right

... employ- 15-year employees' s- two sons made the College World Series and went out to, to wherever they went to, uh, Cooperstown, and, and played in the, in the, in, in, in the World Series against all these teams, and they made it this far.

Congratulations to Mr. McGillicuddy of, of whatever-"

You don't know where it happened?

No, no.

I, I got an enforcement thing, and I open it up, and I'm like, "What the heck is this?" And I looked, and it said, there's my plate, Hawks, right? And it showed stopped at the light.

It was over by Rivers 'cause I had lunch there.

I was supporting the fine to the-

Why?

Because they're finding the minuscule thing wrong.

in a home inspection and they're seeing rates where they're at in the upper sixes sevens and they don't want to go into a home ray that's not perfect because you get into a home now you know furnace is going to run you used to run your two two g's to three g's before covid now it's six seven g's okay water heater used to be six to eight hundred dollars now twelve to fifteen hundred dollars

But isn't it still a seller's market in this area? In this

area in Chicago, it's a balanced market.

Okay.

It's a balanced market in the Chicago metropolitan area.

The upper hand has switched to the buyer's rate.

The, uh, bond market, what's going on?

Oh, yeah.

Uh, the US is back, um, buying treasuries.

So even though they said they wouldn't do it, uh, the yield on, on the 10-year and the 30-year, uh, got into record levels again, and, um, scaring the, uh, traders.

Here, the, the problem is we've, uh, uh, eclipsed $40 trillion of debt in this country.

The investors don't like that.

The bond traders don't like that.

How does that work?

[laughs]

There's, there's not enough days in, in the week for the fundraisers that your listeners, uh, are, are having right now.

And it, it's just a challenge, right? You've got dual income with kids or no kids, right? They, they're each making 80 grand a year, 160,000 household income.

You think you're r- you think you're pretty good, right? Your mortgage payment costs you three, four Gs.

Your, your, your car payment costs you, I don't know, 500 to $1,000 between the both of them.

And then you've got your insurance, and then you've got your food and your fuel and every- But y- by the time you get to the end of the month, you don't have any money left.

And all of this crap with, oh, l- you know, look at the stock market.

What happens is, is people spend beyond their means, and they get above their raising, and they spend too much money, and they buy houses that they can't afford.

What was he told in January 2020? What was said on those calls? What his agency did with and for the intelligence community, and whether knowing what he knows now, he still believes that the risks were worth taking

And it matters because it toppled an economy.

It created- Yep ... unbelievable havoc and harm for kids that were in school at that time.

My daughter was in school, Hawks.

I know your kid was- Yeah ... probably in school as well, so we'll keep an eye on that.

David Hochberg does join us in the, uh, studio.

You had the vax, what, six times? Boy.

Caller number nine at 312-477-8900 here on day number 38 of the 89 days of summer.

So when you see good neighborhoods and what's going on in the real upper echelon, what's going on in Tony Glenview and some of the other, Northbrook and Glencoe, what's happening with that?

You've still got three, four people lining up out the door for a single-family house.

I got a guy two blocks away from me.

He's got one in.

I know you're thinking that that would decrease the price of the house, but he's got an offer in for like $950, right? And it was a multiple offer, and he got the deal.

So the properties are still moving, but rates are up, Sean.

Rates are up three-quarters of a point since we started bombing Iran again.

hell's

Okay, so the benchmark federal rates, what are they going to hold the same? I know they went on a little bit of a rise lately.

Yeah, well, the bond market, so here, let's talk about what happened.

The Fed Chair Warsh and the Fed Presidents voted 9-3, which is the first time that there's been three descending.

There were three descending votes that wanted a quarter point raise.

So a little uncertainty there, you know, a little dissension on the board there, on the Fed board.

The red rates are going to stay the same.

What does that mean for our listeners? Home equity line of credits, car loans, car leases, credit cards, all going to stay the same.

You write off your interest when you do your taxes.

Okay, so the benchmark federal rates, what are they going to hold the same? I know they went on a little bit of a rise lately.

Yeah, well, the bond market, so here, let's talk about what happened.

The Fed chair, Warsh, And the Fed presidents voted 9-3, which is the first time that there's been three descending.

There were three descending votes that wanted a quarter point raise.

So a little uncertainty there.

A little dissension on the board there, on the Fed board.

But the rates are going to stay the same.

You write off your interest when you do your taxes.

Is it, uh, uh, this is good news for this administration.

Uh, according to, uh, the numbers, inflation is coming down.

Uh, CPI inflation fell to 3.5, below expectations of 3.8.

Core CPI falls to 2.6, below expectations of 2.8. Month over month it fell, uh, .4%, biggest monthly drop since 2020, May of 2020.

US stock market, uh, futures shot up on that.

So that's, that's good news.

Listen, if we could get a decrease in the inflation, which would be fantastic, it would put a lot of, uh, relief on all of our listeners', uh, budgets and paychecks and, uh, bank accounts and enable them to pay off some of this debt that they've accumulated and, uh, just put their family in a much better position.

You have a, is it a credit workshop coming up?

So is it really bad news?

It did.

It's bad in the fact that it didn't add as many jobs as the market was expecting.

Okay, so that's why.

It was expecting, payrolls were expecting 110,000 addition, and it only added 52, which is fantastic for the 52,000 people that got jobs.

I'm not discounting that.

It's just that when the bond market was anticipating a bigger number, That's great for mortgage rates because that means that the hiring is not as strong, which means that there might be some type of financial easing going on down the road, which is great for bonds and all that stuff.

At

And things like that.

Encourages that...

So here are a couple of things.

Lifts caps on certain federal affordable housing programs, which is huge.

Because in order to qualify for certain affordable housing program, you have to be within a certain median income.

And some people make it and some people don't.

And some borrowers need that money and miss it by a couple of thousand dollars.

But how does this affect me as a homebuyer right now?

However, what do you think about $70,000 by the doughboy, J.B. Pritzker, for a couple to buy a home in Chicago, I dare you, or now that the Republicans and Communist Democrats came together with their new affordable housing, 2,008 times 3?

No, I don't think so.

Listen, the qualifications to try to get your hands on that money, that $70,000, it's like sucking a golf ball through a Coke bottle, right? Nobody said Kamala Harris.

Okay, there you go.

It's extremely difficult.

And here, I'll be brutally honest with you.

When I saw that the Senate passed the Affordable Housing Act and then it passed the House, I swear to you, I'm like, Trump's going to do something not to sign it.

If ever at all i am not one for government financing anything and then when you talk about the fix we're not going to have wall street buy houses how many people now david i know you and i know what you've told people how many people should not ever be a property owner and should be a renter especially in an unstable market

But I think that's normal, isn't it?

That's life, man.

Listen, people have opinions about things that if you don't agree with them, I'll give you a perfect example.

I follow this guy on X.

Of course you do.

No, QE Infinity.

He's fantastic.

Hey, so Kevin Warsh, you're a guy, gets into the office, first meeting, says that it looks like rates may actually go up, and that's because of the inflation we've seen because of the Iranian war.