Mortgage Applications Hit LOW Since 1995 - Great Time to Buy!

Patrick Bet-David (0:00)

The report just came in from Yahoo Finance. US mortgage applications have fallen to their lowest since 1995

Not 2008, after the mortgage crisis.

SPEAKER_2 (0:11)

—31 years?

Patrick Bet-David (0:11)

—1995, 31 years ago. What happened in 1995 to drop to the lowest? You know how things are right now for regular mortgage loan officers, not guys doing loans above a million dollars. That business is here, they're not being impacted. But to the guys that are doing $400,000 loans, $300,000 loans, $700,000 loans, what do you think those guys are doing right now? It's a very different game.

Why are mortgages the lowest since 1995? Why? By the way, it's a buyer's market. It is a buyer's market. Yeah, it's definitely a buyer's market today, because people... It's not like it's...

If I'm a buyer right now, I would be making 10 aggressive offers on properties that I want, and let them say no. I'll be making 10 aggressive offers right now, let the seller say no.

SPEAKER_3 (0:57)

I actually like that idea.

Patrick Bet-David (0:58)

What do you mean?

SPEAKER_3 (0:59)

No, I just like that idea.

Patrick Bet-David (1:00)

No, that's exactly what I would do today, because how many people can afford a 7.5% interest? No, not that many. What do you think rates are going to be in three years, Tom?

Tom (1:08)

Three years, I think rates... So one year after the new president, one year after the new president, I think rates might get down to 4.999.

Patrick Bet-David (1:18)

Okay, at 4.999 versus 7.5, let's just say 5%, right? So, okay, you refi in three years, and when that happens, what do you think property value is going to do? It's going to spike, okay? Because traffic is going to be there, so you're going to have more bids, like the auction. You have more people bidding for a product that goes up. You know, they always say, like, you know my Wayne Gretzky card that is sold for 2.2 million? You know why it's sold for 2.2 million? Because it was two millionaires that wanted it.

If those two millionaires didn't want it, it would have sold for $800,000.

So that's just because of two crazy guys that wanted that card. The market maker. So right now, if a person is wanting to buy, I would go to my realtor, and I would go make 10 offers right now. Super low, but I make 10 offers right now of properties that I like. Let them say no.

SPEAKER_2 (2:06)

How low if it's a $700,000 house, Pat?

Tom (2:09)

Okay, give me a price point.

SPEAKER_2 (2:10)

Ready for this? I have it. Right now, I know for a fact, on Zillow I saw a $700,000 house, which I was going to talk to Tom about. It's ridiculous. It's sick.

It's like three-bedroom, four-bath, whatever.

Patrick Bet-David (2:23)

I would have my realtor pull up comps for what it sold for last 12 months, pull up comps, and I'll let you say the comps say $660, comparables are at $660. I'm making a $595 offer.

Say no.

SPEAKER_2 (2:38)

Yeah.

Patrick Bet-David (2:39)

Go ahead. Say no.

SPEAKER_2 (2:40)

You have the opportunity to say no.

Patrick Bet-David (2:42)

Yeah, go ahead. Say no. All right, no problem. You know, all you have to say is yes or no, and then let them decide what they want to do. But I would be making an aggressive offer like this.

The moment it drops, traffic with the application will go back up. This is the time to be a little bit aggressive with your offers. Don't be surprised. Trust me, I've made some offers where a person said yes. I'm like, shit, I should have gone a little bit lower.

SPEAKER_3 (3:04)

And when they say yes, what happens?

SPEAKER_4 (3:05)

I'm going to go 2.99.

Patrick Bet-David (3:07)

Play ball. Go back and forth. Play ball.

Obviously, don't do it if you can't afford to buy the offer.

SPEAKER_4 (3:12)

You're doing this for fun, man. Only do it. Don't have a good time.

SPEAKER_3 (3:14)

Can you imagine? I made a $2.2 million offer on 3, and they said, yes, I can't afford $25,000. Don't do it.

Tom (3:20)

Congratulations. You're being sued.

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