3% Interest?

If you're waiting for the days of 3% interest to return before you buy a house... we have some news for you. Tune in today to find out what you can expect, and how you can make the best decision possible.

good morning good morning good morning and hello hello hello to all beeps peeps of that’s right to all of our fellow pickle peeps out there happy to join you this morning and talk about the interest rates it makes you sad it makes me sad um sure do miss the dates uh you know when we had lower interest rates one more time we have any two and a half to 3 and half% it was a beautiful thing was a beautiful an unusual thing um honestly it was like getting free money it’s really not the most sound thing for E economy yeah and so we all got very very spoiled by that and we loved it but it’s really not the norm yeah um we did get used to it and we were adjusted to it but if you recall from the 70s and ‘ 8s interest rates used to be like 13 14% so we just were blessed for a little while there but it’s really not the norm no not at all and and and some would argue not even healthy to have a not really healthy for the the in terms of predicting where uh interest rates are going people will talk about the fed or they’ll talk about the inflation these are all things that people you know spend a whole lot more time studying that and actually get paid to do it uh we don’t do that uh but you know all those things are um uncertain one thing that you can hang your hat on is demographics demographics are unchangeable so we had Baby Boomers and then we had the what was it Gen X and then Gen Y is essentially uh the Millennials yeah the so we’ll talk about those three baby boomers are huge you know we had a bunch of baby boomers Gen X was the baby bust yep and in Millennials they call the echoboom yes so here’s what you need to know uh when people reach a certain age they start investing you know they’re kind of past raising the kids and all that and they’re reaching the maximum of their income potential they start investing money that is the supply of money oh is it yeah that’s that’s where investment dollars come from it comes from people investing right never knew and you got to have money to do that and Baby Boomers during the time we had very they had lots of money cuz most of them had not retired yet M okay mhm the people who were using the money those are people who are doing things like buying homes starter homes cars raising children education those were the Gen xers or the baby Busters okay that’s me that’s you yeah she’s a baby buster I’m a baby bu yeah I’m the youngest I’m in the the cohort the youngest of the uh the Baby Bloomers yeah yeah so what we had was we had a bunch of people supplying money and very few people demanding money so interest rates went down yes it’s it’s just that simple I mean all the other you know factors and everything it came down to demographics y yeah so that’s why it was so it’s so unusual to get demographic shifts historically unless you have you know a plague or something uh well we kind of did yeah we kind of did we kind of did we didn’t that was not a plague plagues kill you know third a third of the population had nothing like that but anyway well not good was not good but it it did not affect the interest rate No it sure right all right so moving forward what we have is the Gen xers the baby Busters are now entering the phase where they can invest and the Millennials the the echo Boomers they’re going to start borrowing so what that means is you’re going to have very high demand and very low Supply meanwhile the Baby Boomers they’re all probably let a three4 of us have reached 65 now something like that so most the rest are dead dead or retired you know but for the purpose of this conversation they’re not investing money they they if they invest their money they put it in very safe stuff you know T bills or something like something very conservative because they have a nest preserve it MH so we’re going into a phase now where you can anticipate very low Supply and very very high demand of money and that my friends means interest rates are going to stay hot yeah which is kind of a bummer yeah it’s a bummer and you’re going to have some movement you know short-term things are going to move the rate around but I think the days of 2 and a half% mortgage rates I don’t it’s going to be a long time till it comes back yeah I just don’t see how that’s going to happen but historically even 7% is still a good rate a good rate uh you know as I said when you compared earlier we had aunts and uncles that had had 16% interest rates so and again even don’t let it scare you even at 7% because hopefully with time things the rates will drop you can always refinance it’s not like you were tied to this for the rest of your life with this huge Rock tied around your neck yes not really I’m sure with time things will adjust refinance at that point yeah if you have to borrow let’s just say the g rate now is about 7 and a half I think let’s say you borrow at 7 and a half uh one of three things is going to happen the interest rate is going to stay the same well you you got the going rate interest rates are going to go up thank God you got the rate interest rates are going to go down you refinance yep you know but uh the idea that in you know 3 months it’s going to go down to 3% no get past it get on with your life none of us are young anymore you need to move on some of us are young young at heart yeah be young at heart and move on with your life don’t don’t let the the interest rates drive your life cuz you could sit there waiting for I mean don’t play that game just just grab Life by the horns get out there and do it don’t let this all don’t try to play The Guessing Game I’ll wait a year or two it it it may be worse so now is the time be decisive just accept it move forward get there and start your new chapter yeah absolutely don’t play that waiting game you’ll drive yourself crazy I’m already crazy with you know um this one I don’t need to worry about the rest of that baby buster can you believe that she Buster I believe it that’s our tip of the day if you like tips the place to goes 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day bye bye