The BEST Real Estate Market in 12 Years

SPEAKER_1 (0:01)

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Michael Zuber (0:29)

All righty, folks, as somebody who has studied the consumer for three decades, yes, 30 years, I have been pretty good at predicting what mom and dad are going to do. And once again, we got it right. What do I mean by that? Well, folks, as rates are falling, mom and dad usually say, we will rate for X. Let's call it 599

However, when rates start to shoot higher, mom and dad come flying off the sidelines. This week, we learned in the mortgage business that conventional loans are down about 9%.

However, did you know that DSCR loans are up double digits? Why might that be? Well, two reasons. One, this is a great market for buyers, investors. We'll bring in a story from Graham Stephan here in a minute. And second, they are quick. And again, if you are in a rising rate environment, you want to get locked in and done quickly. Dustin, thank you for being here. Why don't you kind of highlight what's going on in the business? Because there's a bifurcation between DSCR and conventional. And I don't think most people talk about.

Dustin (1:36)

Yeah, absolutely. I think at first, I want to give a quick overview of what our company Convoy Home Loans has seen, because that's the best pulse that I have, of course, on the market.

And it's very fascinating, but it's not surprising that in the last 30 days, and I'm just looking at the month of September, because we did our monthly overview of how business was, of course, for our company. And the amount of applications that we saw, sorry for the listeners, I don't have the exact percentage amount, but the amount of applications, conversations, loans submitted to underwriting, is significantly higher, or was, I should say, in the month of September, than any month of 2026, okay?

Michael Zuber (2:24)

That is mom and dad doing what mom and dad always do. In a rising rate environment, they rush off the sidelines. Why? Because mom and dad want seven, mom and dad don't want eight.

So it is not shocking. In fact, I would have bet money September was going to be a good month for you.

Dustin (2:42)

Yeah, and it's not like, this rate isn't something that anybody three months ago, six months ago, a year ago wanted. They weren't wanting this.

Michael Zuber (2:51)

No, six months ago, let's call it, no, probably eight months ago. Everybody was hoping for 599

Eight months ago, nobody was thinking about seven. But here we are.

Dustin (3:04)

Yeah, because if seven percent was the norm and it had been like that for two years, nobody would care or be rushing. No, they don't want to.

You bring it from 585996 to seven. Now that scare of eight comes in real quick.

Michael Zuber (3:19)

Exactly.

SPEAKER_4 (3:20)

That's what we want.

Michael Zuber (3:21)

Eight. Exactly. Exactly. Well, let's bring in our boy, Graham Stephan, a friend of the channel, friend of mine.

This is what he said. Again, you can go follow it on X, just type in Graham Stephan. You can see that I'm just reading it verbatim. Here he goes. This might sound absolutely crazy. But now might be a good time to buy a house. Almost no one is looking. I'm sorry. Almost no competition. Very little demand. Rising inventory, 7% plus rates, all while sellers are approaching a slow holiday season.

Low ball offers might get accepted here for those who are patient and play a numbers game. It's like Graham Steffens reading off my script. He uses nicer words than I do, but that's what I've been telling people to do, right?

Dustin (4:15)

I, full transparency, complete honesty here. I did not know what Graham Steffens said, so that was the first time I heard that. I would have said there was at least a 30% chance that he was going to say the complete opposite of what he said.

Michael Zuber (4:29)

Well, he has been pretty negative about real estate here recently.

Dustin (4:32)

Exactly, so for him to say that, that should be enough for everybody watching to validate what Mike and I and everybody else that's come on this channel in the last two months, three months, six months have been saying, but it's even magnified more now.