Housing cannot be fixed in the country, CEO warns

Summary

In this interview, CEO of Cardon Capital discusses the current real estate market, noting a surge in refinancing home loans and a drop in mortgage rates. He predicts a continued seller's market until interest rates fall below 4%. The CEO advocates for rental properties as a wise investment, especially in states with business-friendly policies. He also touches on the importance of financial literacy, wealth creation, and the potential of industries like e-commerce, health, and regenerative health for future investment.

Takeaways

• 📈 Applications to refinance a home loan surged 35% last week and are up 118% compared to the same week a year ago.
• 🏠 The 30-year mortgage rate has dropped for the second week in a row to 6.54%, marking the lowest level in a year.
• 🔍 Upcoming July housing data, including housing starts and building permits, will be released on Friday.
• 💸 The White House has announced $100 million in grants for state and local governments to boost the construction of new housing.
• 🔑 There is a current 'seller's market' in real estate, with a gap between buyers and sellers that won't close until interest rates drop below 4%.
• 📉 Despite interest rates spiking above 7%, home prices have not yet come down to make homes more affordable for buyers.
• 🏢 The CEO of Cardon Capital suggests investing in rental and apartment communities due to the current market conditions.
• 💭 The discussion anticipates a potential 'flight' from high-tax states to places like Florida, Texas, and Nashville if certain political changes occur.
• 💼 The CEO emphasizes the importance of financial literacy and wealth creation education, suggesting that such knowledge is not widely taught.
• 🌐 The conversation points to opportunities in e-commerce, consulting, the cosmetic industry, and regenerative health as areas for potential investment and business growth.
• 🏥 There is a specific interest in the healthcare sector, particularly in anti-aging and regenerative health technologies.

Q & A

What was the recent trend in home loan refinancing applications?

Applications to refinance a home loan surged by 35% last week compared to the week prior and are up 118% compared to the same week a year ago.

What is the current 30-year mortgage rate and how does it compare to the previous weeks?

The 30-year mortgage rate is currently at 6.54%, which is down for the second week in a row to the lowest level in a year.

What upcoming housing data is expected and when will it be released?

Housing starts and building permits data for July is expected to be released on Friday.

What is the White House's recent initiative to boost new housing construction?

The White House announced $100 million in grants for state and local governments to boost the construction of new housing.

What is the current stance of the CEO of Cardon Capital on the real estate market?

The CEO believes there is a seller's market and a buyers' gap, suggesting that until interest rates breach 4% and go back below 4%, the necessary volume to unlock the supply/demand formula is not expected.

What type of real estate investment is the CEO of Cardon Capital currently advocating for?

The CEO is advocating for rental apartment communities as investment properties, citing the current interest rates and housing market conditions.

What are the CEO's views on the impact of potential policies under a Kamala Harris administration on property owners?

The CEO expects more regulations, higher taxes, and potential penalties for property owners under a Kamala Harris administration.

How does the CEO of Cardon Capital foresee the real estate market changing if Donald Trump were to win an election?

The CEO predicts that a Donald Trump win would lead to loosened regulations, lower taxes, and more predictability for property owners, which would benefit the real estate market.

What is the CEO's perspective on the current state of affordable housing in major U.S. cities?

The CEO states that there is no such thing as affordable housing in the country, and housing in major cities like San Francisco, New York, and Chicago has become less affordable.

What upcoming events is the CEO of Cardon Capital hosting and what are their focuses?

The CEO is hosting the 10X Real Estate Summit on October 15 in Miami and a Wealth Conference on October 9 and 10, focusing on wealth transfer, financial literacy, and opportunities for wealth creation.

What advice does the CEO have for individuals looking to generate additional income or invest in new business opportunities?

The CEO suggests looking into e-commerce, consulting, the cosmetic business, the health industry, and considering buying established businesses with no money out of pocket as potential opportunities.