Market Update March 12, 2024: Housing Market Shortage, Rent Price Fixing & Mortgage Rates

The Texas Real Estate & Finance Podcast with Mike Mills

Unlock the secrets behind the housing market shortage and the relentless rise in rent prices. This episode offers a critical analysis and expert insights into the real estate trends that matter most.

Detailed Episode Overview:

With the housing market shortage as our focus, this episode pulls back the curtain on the factors driving up home prices and rents. Mike Mills guides listeners through a detailed exploration of the real estate market, highlighting Logan Mohtashami's predictions on mortgage rates and shedding light on the concerning trends of rent price fixing and the role of corporate landlords in exacerbating the housing crisis.

Key Takeaways:

Understanding the Housing Market Shortage

• The current housing market shortage is a complex issue with far-reaching implications. Mike Mills discusses the gap between household formations and new construction, highlighting the impact on affordability and the American dream of homeownership.

Mortgage Rate Dynamics

• This episode delves into the fluctuating world of mortgage rates. Insights from Logan Mohtashami provide listeners with a better understanding of the economic factors influencing rates and their effect on the housing market.

The Impact of Corporate Landlords and Rent Price Fixing

• Corporate landlords and rent price fixing are driving the national rent crisis. The episode explores Realpage's controversial practices and the broader implications for tenants and the housing market.

The Financial Benefits of Homeownership

• Despite challenges, homeownership remains a key to financial stability. This episode outlines the benefits of owning a home, contrasting these with the uncertainties and escalating costs of renting.

The Critical Role of Market Education

• Educating clients and the public on the realities of the housing market is crucial. Mike emphasizes the importance of informed decision-making in navigating today's complex real estate landscape.

00:00:08 - 00:00:34 | Introduction

Mike Mills welcomes listeners, setting the stage for a discussion on the housing market's challenges and the importance of homeownership.

00:00:34 - 00:00:47 | Host Introduction

Introduction to Mike Mills, a North Texas mortgage banker with Geneva Financial, emphasizing his passion for helping people navigate the world of loans.

00:00:47 - 00:01:21 | The Housing Shortage Crisis

Discussion on the current US housing shortage and its implications for real estate prices and accessibility.

00:01:21 - 00:01:48 | Insights on Mortgage Rates

Breakdown of Logan Mohtashami's insights on mortgage rates and predictions for the future.

00:01:48 - 00:02:05 | Listener Engagement Call

Mike encourages listeners to engage with the podcast through likes, comments, and shares.

00:02:05 - 00:02:23 | Interest Rates Update

An update on last week's mortgage rates, including a tease of rates dropping below 7%.

00:02:23 - 00:02:57 | Analysis by Logan Mohtashami

In-depth look at Logan Mohtashami's article on mortgage rates, influenced by job data and Federal Reserve comments.

00:02:57 - 00:03:21 | Forecast on Ten Year Yield

Exploration of the 2024 forecast for the ten-year yield and its impact on mortgage rates.

00:03:21 - 00:03:44 | Recent Trends in Mortgage Rates

Discussion on the recent drop in mortgage rates to 6.875% and its effect on the housing market.

00:03:44 - 00:04:10 | Inventory and Home Pricing Trends

Analysis of inventory growth and the trend of homes taking price cuts before selling.

00:04:10 - 00:04:41 | The Impact of Inflation Reports on Rates

How upcoming CPI and PPI inflation reports could influence mortgage rates.

00:04:41 - 00:05:06 | Buyers' Market Dynamics

The changing dynamics in the buyers' market, influenced by mortgage rates and housing inventory.

00:05:06 - 00:05:40 | US Housing Market Supply Crisis

Jerome Powell's comments on the persistent undersupply in the US housing market.

00:05:40 - 00:06:10 | Investment Trends in Housing

The trend towards build-for-rent investments and its implications for housing availability.

00:06:10 - 00:06:40 | White House Proposals for Housing Market

Details on proposed tax credits aimed at easing housing market challenges.

00:06:40 - 00:07:16 | Long-term Outlook on Housing Shortage

Discussion on the long-term challenges of addressing the housing shortage.

00:07:16 - 00:07:36 | CFPB's New Rule on Credit Card Late Fees

Introduction to a new rule reducing credit card late fees, aiming to alleviate financial strain on Americans.

00:07:36 - 00:08:12 | Impact of Late Fee Reduction

Discussion on how the reduction in credit card late fees could benefit consumers and the economy.

00:08:12 - 00:08:40 | Closing Loopholes in Credit Card Fees

Exploration of the Credit Card Accountability, Responsibility, and Disclosure Act and its implications.

00:08:40 - 00:09:07 | Consumer Protection and Financial Management

Insights into the CFPB's role in promoting consumer protection and responsible financial management.

00:09:07 - 00:09:21 | Returning to the Housing Shortage

Discussion on the gap between household formations and housing construction, exacerbating the housing crisis.

00:09:21 - 00:10:48 | The Shift Towards New Construction

Analysis of trends in new construction, affordability challenges, and the demographic shift towards younger buyers.

00:10:49 - 00:11:48 | Solving the Housing Crisis

The need for innovative solutions in building more and smarter homes to address the housing shortage.

00:11:48 - 00:12:08 | Societal Impact of Housing Shortage

Reflections on the broader societal implications of the housing crisis.

00:12:08 - 00:13:12 | Financial Implications of Renting vs. Buying

Comparison of the financial implications of renting versus buying in the current market.

00:13:12 - 00:14:26 | Rent Price Fixing Concerns

Exploration of the issues surrounding rent price fixing and the role of companies like Realpage.

00:14:26 - 00:15:31 | Legal and Legislative Responses to Rent Fixing

Discussion on the legal and legislative responses to the challenges posed by rent price fixing.

00:15:31 - 00:16:07 | Corporate Ownership of Homes

The rise of corporate and foreign ownership of homes and its impact on the housing market.

00:16:07 - 00:17:52 | Encouraging Homeownership

Arguments for the benefits of homeownership and the importance of educating clients on these benefits.

00:17:52 - 00:18:27 | Conclusion and Call to Action

Closing remarks emphasizing the importance of homeownership and the need for proactive engagement in the real estate market.

Mike Mills is a respected mortgage banker with Geneva Financial in North Texas. With over 15 years in the industry, Mike brings a wealth of knowledge and insights to his listeners, aiming to demystify the complexities of real estate and finance. As the host of the Texas Real Estate and Finance Podcast, he is passionate about empowering his audience through education, offering practical advice, and exploring the latest trends in the housing market