BLOOD IN THE WATER: SELLERS ARE F*CKED

SPEAKER_1 (0:00)

College football is back, so Hilton called on me, the superstition concierge, to make your fan rituals a reality. Need a room to match your lucky number? We got you. Wanna make sure our team doesn't wash your lucky jersey? Ooh, that smells lucky.

Hilton's unmatched hospitality can keep up with any superstition. Even a marching band wake up call at 555 in 55 seconds. Hit it! When you need a team that will do whatever it takes on game day, it matters where you stay. Hilton, for the stay.

Michael Zuber (0:31)

All righty, folks, oil has shot higher. The tenure has shot higher. Conventional rates are over 7%.

Do you know what that means?

Folks, that means there's blood in the water. That means there's opportunity. That means if you're looking around, you have the opportunity to create a deal of a lifetime. We're going to talk to Jonathan who is in the muck, in the mire, in the water, looking at everybody just freaking out and panicking. But you know what we do? We stay calm. We take advantage of situations like this. So, Jonathan, I'm going to guess the later part of this week, Wednesday, Thursday, and Friday are just chaotic for you. Ten years up, seven mortgage rates, conventional over seven. It's a wild time to be in lending. What do you, what say you?

Jonathan (1:12)

Yeah, it's probably one of the craziest times I've seen in the last two years, especially, right?

I think people have underestimated, and I talked to, this morning, I was just slammed with calls of people just blowing my phone up in regards to, can I lock, can I lock, can I lock, can I put it in now, can I throw deals in now, like, can I lock now? And I'm like, everything's kind of, you kind of missed the boat, right? The boat technically left, we were talking two weeks ago, and now you want to move now because the news is saying that, you know, whatever it's saying, and the expectation now is starting to shift where people are changing their mindset from, okay, I think if I wait long enough, it'll get lower to now, oh, my gosh, the world is falling apart, sky's falling, this isn't going to be over, I need to go move now. So we're seeing that shift happen, and over the last few days, it's been probably the craziest in terms of adjustments that we've had to make in general.

Michael Zuber (2:11)

Well, you know, this is something I told people was coming. You know, I always refer to mom and dad as, you know, the buyers, right? So mom and dad are really predictable. When rates are seen as generally falling, mom and dad wait on the sidelines.

However, when rates go up and they break a psychological barrier, like 7%, mom and dad freak out, and they want to take action almost immediately. So it sounds like mom and dad are doing exactly what I thought they would do. Is that what you're saying?

Jonathan (2:40)

100%, and we've talked about, if you go back all of our videos, right? And this is, I love it because it's on record, and people can always reference back what we talked about.

We've been talking about this in terms of, hey, like it, lock it, like it, lock it. Now's the time to move. We're probably saying that for the last three months, and people were like, oh no, everyone's saying that rates are going to fall, war is just going to drive rates down, and what are we seeing the other way happen? You called it actually a while, while back. So we're here now, everyone, right? But the good news is that conventional moves around every single day, so it's going crazy.

Michael Zuber (3:22)

Sometimes a couple of times a day.

Jonathan (3:25)

Exactly. But the non-QM side, which is DSCR, bank statement loans, profit and loss loans, anything else that's not Fannie Mae or Freddie Mac or FHA or VA, hasn't moved this much. But when is that going to happen?

Michael Zuber (3:41)

So let's say it differently for the average person out there. Again, talking about mom and dad. Mom and dad, if you were going to call up convoy or any lender and get a conventional loan, they're all rough and tough the same. You're over 7% today. But DSCR moves slower.

It could take days, it could take a week. Today, I'm guessing if somebody called in and opened a file and got you everything, you could still lock somebody, I'm going to call it in the sixes, maybe the mid-sixes, if they did it today. Today being, just so we're clear, September 10th.