 Hey, good morning, everyone. How you doing Russell Moore coming to you live dedicated to financial literacy Alright, that's the name of the channel. I want to encourage you to hit the subscribe button Give me a thumbs up if you like the content and if you want to continue to hear more content Be sure to hit the bell ding dong notify. Okay. All right, so Great to see everyone. It's probably like 3 30 in the morning right now So I'm up a little early if I look a little sleepy. Hey, I'm dedicated to this I'm dedicated to bringing content. That's that's the name of the channel. Also. I want to plug my wife's channel It's called dedicated to planning. She loves planners and organizing and all that and so that's it's really an interesting genre She went to a conference for it. I was like this is kind of first I thought it was kind of weird, but I'm like wow It's really like a real thing a lot of people are into planners and so my wife is really into that She started a channel again. It's called dedicated to planning her name is event more or take up more and so check her channel I'll check it out. All right. So, um, anyway much better than mine So Anyway, I want to talk about the housing market and I'm gonna jump right into it. I'm not gonna like I'm gonna try to like condense this summarize it Don't have any notes in front of me. It's gonna come straight from the dome and But just some things that I've been I've been doing some research and just my own experience. I Want to tell you right now? I'm not a I'm not a real estate broker Don't even have my license Thinking about it this year. I was thinking about it. Maybe possibly going ahead and get it getting my real estate license But I'm not but I'm here not I'm not to give you advice on what you should do I'm just giving content and information about housing. I do a lot of research. I do a lot of reading and so And when based on what I've experienced too, I'm just gonna share So everything that I have that I've learned it's available to you So and that's why I tell people all the time. It was my what's my favorite quote if you don't learn You will not earn It is a key learning and earning married together So anyway, let's get started. Okay number one I'll give you a little background. We we bought a house in November of 2021 Probably so we've been in our new home about six six months Before that, you know, I had a couple of jobs where my job actually provided housing So we didn't pay rent. So that was that's an advantage that a lot of people don't have if you're in property management maintenance Management of sort like that and so we we were living in a beautiful home in Venice, California beautiful place Rent-free as long as I had that position so So we were able to stack chips stacks of money save some money We didn't have a whole lot of debt anyway But we're ever to remove all debt and just get ready and bill bill for I'd say for our house And so in 2020 yet when the pandemic hit shortly afterwards I was I was telling my wife look we must get a we have to get a home And I've been and here's my reasons why before inflation begin to rise I knew it was gonna rise most people knew it You didn't have to be an expert all you had to do is pay attention and Do your research and you would have seen that inflation was gonna come and they're gonna be on the rise But what people did not anticipate we kept hearing a lot of experts saying That inflation is transitory particularly Jerome Powell for the Federal Reserve was saying it's transitory It's not gonna last in other words. It's gonna be temporary period Temporary that the inflation rate was gonna go up. They were basing it on the CPI and let me tell you something about the CPI It excludes food and energy costs So if the if the CPI is saying 7% and I got a video about this you can go back in the Months and months ago. It's really around 9% 10% so right now. They're saying it's 8% the CPI So really to be truthful about it if they were truthful The rate the CPI consumer price index The rate of inflation is around 10 to between 10 and 12 percent right now Don't listen to fake news Stop lying to the people so I knew it wasn't gonna be transitory. How did I find out? It wasn't just the research. I was talking to people. I was talking to your UPS driver. I was talking to the Amazon delivery person. I was talking to the restaurant owner I was talking to the bus driver. I was talking to the consumer I was talking to people and everybody's prices were going up And if you were an owner of a business, you're gonna be passing it on to the consumer Your prices were going up. Hey, listen Even the builders house home builders, right the developers Lumber is up steel was up The wires for the electricity is up the boxes that if you look in your wall, they're electrical your electrical Electric outlets if you went into the wall, they're plastic or metal boxes. Those are going up dry walls going up The materials from the roof going up Paint going up. I mean everything concerning house building. So you got all of these prices going up I said wait a minute. This is not temporary This is not gonna be temporary Okay, so that was number one inflation. So then I thought okay, what happens? I started doing my research again. You don't learn you don't earn. I started doing my research What happens when historically when inflation goes up? usually When inflation goes up to combat it They raise the rates and at the time we were at zero The Federal Reserve was that we had the Federal Reserve rate the interest rate was at zero So we had all kind of room to raise it So I said, oh, they're gonna raise the rates Everybody start talking about them raising the rates check my video last year early last year. And what did I say? I said the rates would be raised By the first quarter of 2022 everybody was saying 2023 some people were saying 2024 2024 I said that's crazy So I told my wife we got to get a home. We got it November 21st and November 6th 2021 we bought our home at 2.7 0.75% What's our mortgage rate? Fast-forward we're now in 2022 what happened in March the rates were raised The Federal Reserve raised the rates guess what happened to the mortgage rate it went up You know where we're at right now may of 2022 We're at 5.6 and climbing I Have no doubt by the end of July. We will be at 6% By between now and July the interest rate the housing rate mortgage rate will be at 6% So all of these things of fact are coming in now. Here's another fact that you need to know generally here's what you need to know Here's another fact the rates are at 5.6 Right last year year to date last year was at 2.6 2.7 this time this time of the year So that's three points, right? You need per point you need to make here's what they're saying the numbers Experts are saying you need to be making about $30,000 more annually To purchase the home The same home that you would have bought last year You need to be making about $30,000 more income Yeah, I got quiet for a minute. I want you to sit down on that for a minute All right That's very important for you to know when you go to the lender Another thing that has happened because the federal rate rate went up the mortgage rate went up But not just a mortgage rate if you buy a television from Best Buy That that that interest rate has gone up Yeah, auto auto loan if you go go get a car The rate has gone up. You're not gonna be paying two points My wife and I we got a car as well. We decided to get a car. I Rate is at less than 3% That is not no longer the case because the federal rate went up So they had the the loan for a car right now the interest were interest rate has gone up Your credit card interest rate has gone up now get this Your interest should be going up for your savings account. I Doubt if it's even at 1% it may be at 1% now Now isn't that amazing Your savings account didn't didn't go up much But to purchase a house it's almost 6% now interest rate mortgage rate, okay All right What are you gonna do? What are you gonna do? And some people are trying to decide do I buy a house now that it depends on your situation And let me tell you I am my disclaimer. I am not giving advice You're not coming back so in me. I just I'm giving you a content. I'm giving you information Here's what some people are thinking. Okay If the rates are gonna go up, I need to get into the market. I better get a house now Because by the end of this year you guys it could be at 8% Now at one point they'll level off they'll probably go down some So if we yeah, but we not till after they've gone up Then they'll probably kind of curve and we'll probably see a little bit of deflation Here's another thing that I'm saying we're in a recession now a lot of people are saying all the recessions coming in 2023 We're already in it Call it pre-recession all you want. We the recession is here But God is greater than a recession. He's greater than your recession He's greater than this country's recession. He's greater than the lack of economic brains They're operating in us in this administration The decisions that they've made That's another video. Okay, I'm not gonna rant about this administration. All right, Lord bless them pray for him I pray for more than pray for my pray for Anyway Here we go So you got to decide is this a good time for you to get a home If you're in a good position where you're in you're renting and here's the thing about renting renting is going up as well If we would have stayed in the place we were renting a home in The last year right before we got our house If we would have stayed there, we would have been paying around 24 20 26 a month 2600 Our mortgage 30 year fixed mortgage is $700 less than that I want you to look at listen to that. We're locked in to a 2.8 rate for 30 years and as long as we don't move or Refi refinance, which we're not gonna do. We'd love this rate. We're gonna keep it now Here's the Yeah, here's another thing Some people are thinking about getting a home right now. Go ahead. You know, there's like, you know We got to jump in now before it goes too high Or you can wait some people are deciding, you know what this it's this it's reaching its It's the length. It's bubble. We're in a bubble. It's gonna burst and it's the housing market's gonna crash Well prices will eventually come down whatever goes up comes down. Okay market how the marking It's like the stock market. It goes up comes down goes up comes down. Okay, historically It does that okay, so eventually it will come down prices will come down But will it come down 20% because that's what needs to happen 20 to 30% The market needs to decline in order to make a difference based on them the current rates It needs to go down 20 to 30% for it to be a benefit to you and that's possible. It's possible So you got a big decision to make okay, do we go in to try to jump in now? Or do we wait till the prices come down? Well, if they come down what baby in a year 10% let me just tell you the market the market cap the California market Not every market is different and when it comes to housing, there's no national market. It's individual markets There's a Seattle market. There's a San Francisco market New York market. There's a New Jersey market There's a Boise, Idaho market and there's Oklahoma market as a Tennessee market There are different markets and then there are sub markets under that So one market could be blooming one could be crashing So keep that in mind when you're thinking about a home. All right So The California market 44 million people here. We are 2 million homes short for our market 2 million So because we have more people than we have houses The bidding war is gonna continue. I don't know for how long could be through the year could be this summer At one point people are gonna realize, you know, I'm gonna back up the more the rates go up the more the interest rate goes up the The mortgage rate the more that goes up the less people are going to if the prices of the housing prices Do not come down the more people are going to pull back from purchase Because they're gonna be like wait a minute. First of all, I need 30,000 get that you need $30,000 in addition of $30,000 Based on the interest rate the housing rate now the the mortgage rate now you need $30,000 more income Annually in your household Then you did last year this time Wow So here's what you can do. Okay, you've heard about you've heard a bunch of craziness, right? It sounds like oh man, it sounds bleak. No, no, no Here's a couple of things you can do spiritually and this if you're not a Christian, you're not a believer You can fast forward this part But I think you need to stay on and listen anyway Even if you're not a believer speak the words as the Bible says decree a thing and it shall be established to create decree It decree it begin to speak it My wife had a bunch of scriptures during the time where we were waiting for our home She had these scriptures and we would just confess and speak them and say and to exist Lord We thank you and we will begin to thank God for it before we saw it. We thanked him for it before we saw it We thanked him for it We knew we had it even though they had materialized. Okay number two now write it down Make division plain without a vision that people perish write it draw it draw your home everything that you want get details What color do you want your home? How many bedrooms? How many bathrooms? Do you want a pool? Do you want a jacuzzi? Do you want a deck in your backyard? Do you want a she shed? Do you want a man cake put all of that in there? Write it down Okay, speak it write it Now we're gonna get a little bit practical practically get out of debt Number one thing get out of debt Here's what's happening because of the federal reserve raising the rate. Guess what those credit cards Your credit cards the interest is going up on that That's why if you look at your credit card bill this month It looked you're like man, I paid such a such last month and it looks like it increased because your interest has increased So you're gonna have to put more behind it in order to get it down and to get out of debt And this goes for all the cards all the all the cards all the interest has gone up So begin to speak to your debt begin to pay Get a little side hustle make a little money on the side tutor Lift uber whatever you need to do make a little money on the side Start a side business whatever you're doing and begin to up tack your debt Say no to that great vacation to hawaii this year Say no say no and we're gonna we're gonna save money. We're not going to just spend We're not going to just go out and enjoy ourselves Sacrifice a little big gang sacrifice We had to sacrifice. I'm not lying. We did there are things that we could have done that we wanted to do and we didn't do it In order that we could You know In order for us to be where we're at. Okay, so I want to encourage you be willing to sacrifice Delayed gratification Delayed gratification that is not a phrase that are this up-and-coming generation loves to hear Where you delay your gratification you sacrifice now for a better future tomorrow All right, so So So then you get out of debt lower your expenses lower your expenses save money So and save so and save so here's what I call it gis s generate Generate more income I invest s save s so Generate invest saving so You get the gis of what I'm saying Jis generate invest save and so That's it for now gang And listen, I pray I pray for you. I thank you for your new home. I thank you for your new property Whatever investment property or single family home town home condo, whatever you believe in god for I come in agreement with you and I decree that it will happen for you And I speak this over every one of my friends family and church members that are believing god for property and investment homes And this this particular year or 23 whatever there whatever the time frame is and lord I thank you for Jesus name. Amen. Have a wonderful wonderful day gang. All right