The Accunet Mortgage & Realty Show 7-28-24

Episode Transcript

Speaker 1 (00:00):
The following program. The Academic Mortgage
and Realty Show is paid for infull by ENT mortgage, LLC and
equal housing lender consumeraccess.org number 2 5 5 3 6 8.
The advice and opinionsexpressed during the ENT
Mortgage and Realty Show aresolely that at the hosts and
guests of ENT mortgage, LLC,and not WTMJ or Good Karma
Brands.

Speaker 2 (00:20):
Welcome to the Accu Net Mortgage and Realty Show,
getting you inside informationon buying, selling, and
financing your home with expertadvice from Accu Net Mortgage
and Realty. And now here'sBrian and David Wickers.

Speaker 1 (00:35):
Welcome to the Accu Mortgage and Realty Show. I'm
Brian Wicker, licensed realestate broker with ANet Realty
Advisors and the majority ownerof Anette Mortgage, where my
individual ID number is 2 5 9 61 0. And I'm here again today
along with my son David Wicker,who's our senior loan
consultant, one of our seniorloan consultants and our Chief
Client Experience Officer. AndDavid's individual NMS ID

(00:57):
number is 3 2 8 8 4 7. Alright,if you have a question or
comment, you can call or textus on the WTMJ talk and text
line , which is 8 5 5 6 1 6 1 620. Well, David, I would be
remiss if we didn't mention toour radio listening audience
that today is the actual 25thanniversary of the birth of

(01:19):
acuate mortgage LLC. Yes.

Speaker 3 (01:21):
Congratulations.
Thank you. A quarter century.

Speaker 1 (01:24):
A quarter century. I have a picture that we showed
last night at our , uh,celebration dinner Yeah. Of you
, uh, age 10. Yeah. Yeah. Whoknew?

Speaker 3 (01:33):
Well, we were hoping

Speaker 1 (01:34):
Yeah. That a , a quarter century later you'd be
here. A lot of water over thedam. Oh, yeah. Um, I learned
that the Plural for Crisis isproperly pronounced crises .
Yeah . And , uh, not crisises .
And we have seen a lot of 'emin the financial, financial
crisis . Well , many kinds ofcrisis . Sure . But yeah, it's
really kind of interesting tosee how things have waggled

(01:56):
over the years. And one of theslides that I put up there was
showing how right after westarted in 1999 , uh, rates
went from, I think they wereabout six and a half , and then
they went up to , um, 8.75.
That, that was the peak. I

Speaker 3 (02:13):
I remember a story being told that at that time
you could either get a 30 year,a 15 year, or a seven year arm
at eight ,

Speaker 1 (02:20):
At 8.75. I wish I could have found We used ,
that's when we used toadvertise in the journal , uh,
Sentinel. Sure . And I canenvisioned it in my, in my
mind. And it was a three yeararm, by the way, back when
three year arms were availableanyway. Yeah. So , uh, then you
see this big, you know, longprotracted dipping rates , some
up and down jagged Sure . Kindalooks like a , a mountain

(02:41):
range. And then the high pointagain, 25 years later, 24 and a
half years later, in October of2023 was 8.1 on the third year
fixed rate . No

Speaker 3 (02:51):
Problem. No

Speaker 1 (02:52):
Problem. Okay . And so now thankfully rates are on
the way back down. Let's talkabout that a little bit. Yeah.
And the reason that rates areheaded in the right direction
is we're getting some favorableinflation reports. Uh, what
report did we get on Friday?

Speaker 3 (03:07):
We got the PCE report, the Personal
Consumption Expenditure, whichis the Federal Reserve's
Preferred Gauge . The reasonwhy I think it's preferred you
got CPI Consumer Price Indexthat measures everything. Loaf
of bread, bottle of beer, newcar. Even if you didn't buy any
of that. That's right . They'remeasuring everything versus the

(03:29):
PCE is, oh, you needed to gobuy a new car. What did it cost
you when you did it

Speaker 1 (03:36):
And you decided to buy a Chevy, not a Cadillac.
Exactly. You know, and or youdecided to buy a hamburger and
not steak. That's all bakedinto the PCE number. And the
Fed is looking for that to getdown to 2.0% for the core PCE
number. Where did we , uh, findout? It ended in two .

Speaker 3 (03:55):
So you'll be humored because we love headlines. And
then cracking the headlinesopen like an ostrich egg. The
hoped for number was 0.1 . Theheadline was 0.2 month over
month. Oh . But dad, that's arounded number. Oh, and what's
fun about that when you nerdout on the data 0.2 is

(04:19):
inclusive of 0.15 all the wayup to 0.249 . Oh, okay. That
wide range. Right . Becausethen they deliver it in the
10th. Okay. This report was0.18 . Oh . Which that sounds
so much better. Better it doesthan 0.2 or 0.23 , which gets

(04:41):
rounded. Oh, yeah. Which is whymarkets on Friday were like,
Hey, that's not so bad. Pointone eight , I think it was even
smaller. I think it was like0.17 something

Speaker 1 (04:52):
And the year over year number was for the core, I
think it was 2.6. Yes . Whichwas right at expectations.
Right . So we are , uh, thecloser PC closer, the PCE
peaked out at 7%, whereas theconsumer price index peaked out
at 9% in the summer of 2022.
Yeah . So we are well on ourway down to 2%. The Fed is
meeting this coming week. Yeah.
But nobody expects 'em to doanything with their short term

(05:14):
overnight interest rate. Butthey're , everybody's really
certain that they're gonna cuta quarter percent , uh, in
September. But as we often say,that knowledge is already baked
into today's rates. So we endedthe week low overhead ACU net
on a $300,000 30 year fixedrate with 25% equity and all
the other Right. Stuff. Wecould have delivered a 6.99 30

(05:37):
year fixed rate with no points.
And actually we could afford tochip in , um, $475 towards a
person's loan cost , whichwould pay for their appraisal
if one was needed. So that'spretty good. Yeah . And then
the , um, first Wisconsinspecial first time home buyer
money , uh, that's at six and aquarter. Uh , the a PR and that

(05:58):
can vary widely because of theprivate mortgage insurance. It
might be as low as 6.26 if youdidn't need any PMI on that
program. Right . You're putting20% down or more, or, you know,
it could be as high as six anda quarter if your credit's not
so good. And the , and themortgage insurance is
expensive. Alright . When wecome back , uh, let's do a
little update on supply anddemand. 'cause we've got some
additional information onstatewide Wisconsin Home sales

(06:21):
and also the NationalAssociation of Realtors came
out with their numbers. We'llget to that right after this.
You are listening to theAcademic Mortgage and Realty
Show on AM six 20 WTMJ

Speaker 2 (06:34):
Home buying advice from the guys who know it best.
This is the Acuate Mortgage andRealty Show with Brian Wicker
on WTMJ.

Speaker 1 (06:43):
Thanks again for tuning in today. Welcome back
to this 25th anniversaryedition of the Acuate Mortgage
and Realty Show. Not of theshow, but rather of the
company. David, I saw a pictureof myself , uh, in the
slideshow that we did lastnight and , uh, for , to
celebrate our 25th anniversary.
And I used to have dark hairand didn't have this kind of
ozone hole in the back. Yeah.

(07:03):
It's kind of amazing whathappens over a quarter century.
Anyway , um, this last week ,uh, the National Association of
Realtors came out with their ,uh, recap of June home sales
and so did the WisconsinRealtors Association. And we
had already come out with ourfive county metro area numbers
from , uh, on last week's show.

(07:23):
But let's just reemphasize,this is a great little
exercise. And real estate islocal. So the National
Association of Realtors cameout and said, Hey, you know
what, the number of closedsales in June was down 5.4%
compared to a year ago in June.
And this was interesting. Ididn't have time to check this
on our local numbers. That'sthe slowest pace of home sales

(07:46):
since June of 2010, which whatwas happening in June of 2010 ,
uh,

Speaker 3 (07:51):
We were unwinding all the knock on effects of the
financial crisis.

Speaker 1 (07:55):
That's right. The housing crisis was in flu full
bloom. Um, so that, that waskind of interesting fact that
they put out there, their pressrelease statewide, Wisconsin
home sales were down 10.5%.
This is counting the number ofclose sales. Yes . Hey ,

Speaker 3 (08:12):
I , I know I just, okay. Our listeners can't hear
me. Shrug can't see me shrugnor here .

Speaker 1 (08:17):
Right . And in the five county area, we'd already
reported they were down 10.9,so let's call it 11%. Now, this
is what I find interesting aswell, months of supply. So
what's our listing situationlooking like? Yeah. Because it
is vastly different indifferent areas of the country.
So if you look at the NAnationwide number Oh. And then
we can do the months of supply.
Do you want to quickly explainmonths of supply?

Speaker 3 (08:39):
Uh, zero to three months is a seller's market.
Four to six months of supply isbalanced ish. And if you have
more than six months of supplyof homes, it's a buyer's

Speaker 1 (08:50):
Market. That's right. And what we're they have
their pick we're doing there istaking the number of active

Speaker 3 (08:54):
Listings. How fast can you chew through? Right .
All the homes that areavailable with for sale signs

Speaker 1 (08:58):
Divided by the most recent number of monthly sales.
Okay. So nationwide, this iswhere we are disconnected with
the nationwide numbers.
Listings reported by theNational Association of Realtor
were up a whopping 23% comparedto a year earlier, giving the
nationwide market a 4.1 monthsupply. So just sneaking into

(09:19):
that balanced market , uh,category. Yeah . Um, statewide
for the entire state ofWisconsin, new listing dropped
10.5% in the month of Juneversus the prior June. Now I ,
that doesn't, that's not thesame number as total number of
homes on the market. I couldn'tget my arms on that.

Speaker 3 (09:39):
Well , that's because the total number of
listings is cumulative Correct. Of all the months that have
come before Yeah . That havenot gotten to the closing table
yet .

Speaker 1 (09:46):
Correct. So I don't unfortunately have that number.
But if you, according to theWRA, if you take the current
inventory and divide it byJune's number of sales, we're
at a three and a half monthsupply. Okay. So kind of right
at the cusp of balanced . Butthen this is cool. WRA breaks
it out between these threecategories. Rural, which is a

(10:07):
4.7 month supply, so decidedlyinto the balanced definition.
Mm-Hmm. micropolitan areas have a 3.6
month supply. And if you'rewondering what's

Speaker 3 (10:18):
Rural Dallas,

Speaker 1 (10:19):
What is a micropolitan area? Yeah. That
would be like Wisconsin Rapids.
Whereas Wasaw is a metropolitanarea. , welcome to the
Nerd Out Show of , uh, realestate and Mortgage

Speaker 3 (10:31):
Metropolitan.

Speaker 1 (10:32):
And the metro area is, metro areas throughout the
state are at a 3.2 monthsupply. Uh, so again, kind
getting a little higher that ,

Speaker 3 (10:40):
That's, well, but it's why last week and or, and
many months and years before wetalk about by the municipal
level For sure. You know, whenyou're talking about, Hey,
what's St . Francis versusBrookfield versus West Bend?

Speaker 1 (10:53):
And all that really matters is those areas where
you're willing to buy a home inthe price range that you're
looking to buy. Mm-Hmm.
. You know, andthat's something that you're
gonna find out when you'reshopping. Yeah. Right. What is
in my windshield of things thatI'm willing to consider. Yeah .
Because then if you drill downto the five county Milwaukee
area, we only have a two monthsupply. So that's quite a

(11:16):
variety.

Speaker 3 (11:16):
And I would tell you, if you're looking in, you
know, greenfield below 300,000,you have a six day supply.
Yeah.

Speaker 1 (11:22):
Right. It's, it's really t it's really tight. So
all real estate is , uh, local,by the way, median sales price
records all over the place. Uh,the national and median sales
price set a record of 427,000in June, statewide, 3 27 5.
That's up 7.5% from a yearearlier. And in the five county
area 360, that's for singlefamily detached and condos

(11:45):
combined in all cases. Uh , yet

Speaker 3 (11:47):
My hammer is should rates continue to abate.

Speaker 1 (11:52):
Yes.

Speaker 3 (11:53):
It will not be a one for one buyers coming back
sellers dislodging from their,from their current setup . It's
going to, it should rates comedown further. It's gonna bring
two to one, three to one, fourto one buyers back into the
market versus a seller who'slike, so is you willing to Oh,

(12:14):
now I'm willing. Yeah .

Speaker 1 (12:15):
Yeah. Alright , well let's talk about that. I do
have , um, Fannie Mae's latesthousing forecasts and interest
rate forecasts in my hippocket. But let's put that in
the second half of the show andlet's come back. Tell one of
your real life stories aboutsomebody who is buying a home.
Uh , right now you arelistening to the Anette
Mortgage and Realty Show onWisconsin's radio station. AM

(12:37):
six 20 WTMJ,

Speaker 3 (12:39):
Getting you into

Speaker 2 (12:40):
The home of your dreams. Here's more of the ACU
Mortgage and Realty Show withBrian . We on WTMJ

Speaker 1 (12:47):
Welcome back and thanks again for tuning in
today. I'm Brian Wicker, theelder. That's David Wicker, the
younger, taller, more handsomeof the wicker men. And , uh,
David, we're just recapping thesupply and demand dynamics ,
uh, in the great state ofWisconsin and then more locally
in southeastern Wisconsin,where in a lot of the markets
where our buyers are shopping,it's still a seller's market.

(13:09):
Yeah . And so, you know, one ofthe things that sellers have
never liked , uh, is , uh, anoffer that's contingent upon
the sale of the buyer's home.
Mm-Hmm. . Right .
Because that's a wild card thatthey can't control. And so you
were telling me , uh, before westarted today that you've got a
buyer who can actually buy ,uh, without selling their home

(13:30):
, um, with like 5% down.
Mm-Hmm. . Um, butthey wrote their offer
reflecting that the sale oftheir home is actually gonna
occur . And so they can puthalf down. Tell us more about

Speaker 3 (13:44):
That. Well, and so ultimately this is a , I'm
gonna call it a mismatchbetween timing, contract
commitment contingencies andall of that in this bucket of
risk management. Yeah. Right.
And one of the ways that Iframed this to the client, they
can, just to emphasize thepoint, they can buy the new

(14:07):
home uncorrelated to whathappens with the sale of their
Eau Claire house.

Speaker 1 (14:13):
Oh , okay. Yeah.

Speaker 3 (14:14):
They're moving from Eau Claire down to like New
Berlin or

Speaker 1 (14:16):
Something. Okay .
Gotcha .

Speaker 3 (14:18):
New job using, you know, new , uh, future income.
Okay . Again , amazing when wecan do that.

Speaker 1 (14:24):
Yeah. We can get that done.

Speaker 3 (14:26):
And the timing, they have the accepted offer on
their Eau Claire house. Theyalready

Speaker 1 (14:32):
Have it in their pocket. They do . Before they
wrote the offer on the newhouse. Correct. Wow. Nice. And

Speaker 3 (14:36):
The way that I , to , to, to forecast it out,
they're gonna sell that houseat 10:00 AM Mm-Hmm.
on the closingdate in a couple weeks. And
then they'd like to go buytheir new house down here in
southeastern Wisconsin at 1:00PM

Speaker 1 (14:50):
Gotcha .

Speaker 3 (14:52):
In their mind. And, and everything's gonna go
great. Dad, nothing couldpossibly go wrong is going to ,
it's all gonna go fine. They'regonna drive to the closing
sign, all this stuff. Themoney's gonna get wired.
There's not gonna be any

Speaker 1 (15:07):
Problem with the inspection. The appraisal's
gonna be fine. The financingcontingency is gonna go great.

Speaker 3 (15:12):
And I, you know, I, what's a nicer way of saying
paranoid? I think we've justseen it not work out

Speaker 1 (15:19):
Yeah. Uh ,

Speaker 3 (15:20):
Perfectly in the sequence that the, our client
is expecting. And so Ipresented that what we can do
is I want to get you approvedfor the loan,

Speaker 1 (15:36):
Assuming your house never sells. Exactly.

Speaker 3 (15:38):
Well , and I, I try to say this in real life
examples 'cause we're we'retalking about their buyer.
Yeah. On their Eau Clairehouse. Hey, not, not if do they
get struck by lightning, butlike what if they lose their
job Yeah . Between now andclosing, what if they get hurt?

Speaker 1 (15:55):
Right . And , and

Speaker 3 (15:56):
Now they're on

Speaker 1 (15:56):
Not working disability income, you know ,
and they don't qualify anymorefor their mortgage 'cause their
income is reduced. Right.

Speaker 3 (16:02):
Kinda like the real life stuff, let alone Oh,
something from the inspectionMm . Appraisal on the house
you're trying to sell doesn'tYeah . It doesn't come
together. The , the real lifeelements of why a buyer might
not, not just because they get,you know, clipped by a bus
Right . The day before closing.
And so the prudent path is ,I'm gonna get you ready, I'm

(16:26):
gonna be ready to lend you allthe money you might need. And
then you sell your house at10:00 AM You call me at 10:30
AM to confirm. Yep . Oh, yep .
We have the money. It is sold.
Then the acuate team can justlower the loan amount. Yeah.

(16:48):
And I ,

Speaker 1 (16:48):
Yeah , I would even

Speaker 3 (16:49):
Possibly after confirming, right?

Speaker 1 (16:51):
Yeah. Well , well , or yeah , I'm with you. Can we
take it ? Can we, can I helpyou take another, because what
did these people decide?

Speaker 3 (16:58):
Uh, they, they heated my advice to do the
prudent plan, the 10% or thesmaller down payment without
counting on everything goingperfectly. Oh ,

Speaker 1 (17:10):
Good, good.

Speaker 3 (17:12):
Um, and

Speaker 1 (17:12):
We could talk about, you know, we don't necessarily
have to at 10 o'clock send anew closing package. We could
still send the closing packagefor the big down payment

Speaker 3 (17:19):
With the expectation. Yeah . That

Speaker 1 (17:20):
All will go well .
But at least we'll be

Speaker 3 (17:22):
But from it's a regulatory piece too. Yeah.
Right. Because Oh yeah . Ifthey, if we weren't doing risk
management and we made the gameplan, oh , yep . You're gonna
put half down. Oh. And then youcall me at nine forty five in
this example and the , and mybuyer, they're not closing.

(17:42):
Yeah.

Speaker 1 (17:43):
I need to do the 5%

Speaker 3 (17:44):
Job . Uncle . I need to do the , can you lend me
more money? Uncle Sam says, oh,aina , did you just raise the
loan amount from half down upto a , a bigger loan

Speaker 1 (17:53):
Amount ? It's not , it's the , uh, annual
percentage rate that too thatwould go up because of the
private mortgage insurancerequired. Right. That's what
would be the killer in myopinion, is that the A PR would
exceed almost certainly the onequarter of 1% maximum. Right.
Then you have to go on a threeday timeout. Right . To allow
the borrower to reconsider, Ooh,

Speaker 3 (18:12):
This, this is the level of care. I I have another
level of care story that I wantto Okay . Just talk about
briefly about after our, afterour break here for the news.
But it's being mindful, a a ,an unthinking , um, lender who
has a skyscraper downtown wwouldn't, I think be

(18:35):
forecasting. Let's make surethat you get to the closing
table on the new home.

Speaker 1 (18:39):
Yeah.

Speaker 3 (18:40):
And, and hope for the best, but plan for bucks .

Speaker 1 (18:44):
Yeah. Yeah . Yeah.
That's , I like that. Alright,so , uh, when we come back,
we'll talk about your other ,uh, standard of care story and
then also come back to theFannie Mae, Freddie Mac , uh,
or no, just Fannie Mae.
Predictions for interest ratesand housing. But right now it's
time to turn it over to theWTMJ Breaking News Center.

Speaker 2 (19:03):
Don't break the bank to get into a house. Back to
the ACU Net Mortgage and RealtyShow with Brian Wicker on WTMJ.

Speaker 3 (19:10):
Welcome back to the ACU net Mortgage and Realty
show. 25th anniversary edition.
What's 25? Silver.

Speaker 1 (19:16):
Silver. That's silver. Yeah. Like my hair.

Speaker 3 (19:20):
I have a little two in case you're a little ,
little sprinkle or something. Idon't , a little wisdom in
there .

Speaker 1 (19:24):
I think you're , you're putting that in there.
Yeah.

Speaker 3 (19:26):
Clooney style.
That's me. That's right. Uh, soI , uh, our previous segment,
dad , you know, detailing, I, Ithink the approach that we've
taken for 25 years is what isthe advice we would give to a
family member and making that a, the advice we give to a

(19:47):
client, because as much as I ,I I , I am reminded people want
the house. That's

Speaker 1 (19:55):
Right. The mortgage.
They don't want a

Speaker 3 (19:56):
Mortgage. Mortgage .
The mortgage is just a thing.

Speaker 1 (19:57):
Yeah. They would prefer not to have a mortgage.

Speaker 3 (20:00):
And , and most people, and, and the
highlighting that the clientwants the house, the story we
just told, it's like, do youknow what is probably most
important to those peoplemoving from Eau Claire to New
Berlin? They wanna move intothe house. Yeah .

Speaker 1 (20:15):
The moving truck being there to pick up their
stuff and get it delivered and,you know, get the bedside up .

Speaker 3 (20:20):
Exactly. That, that's the most important
thing. And, and providing thelevel of care that the tool
that we are providing themortgage tool helps them
achieve the real life stuff of,I mean, they're gonna have to
like be putting their kids inschool Yeah . Too. Like , it's
not just the moving truck.
There's kids as well. Well ,

Speaker 1 (20:38):
But that'll be later. It's summertime. Come
on. They don't have to put 'emin school yet. Well, who knows
. Is this gonna happen aroundthe corner , man , at the end
of August? Okay,

Speaker 3 (20:44):
So, so I had another client, this , uh, uh, who is
buying a home, their new homeon Wednesday. Okay. This was a
referral from their real estateagent. And funny enough,
because Milwaukee's a smalltown, this buyer works with a
financial advisor that we ANethave worked with before. Wow.
Many a time in our 25 years .

(21:06):
And on Friday , uh, because I,in a previous life worked in
the financial advising world,this client is bringing their
down payment from a brokerageaccount. Ah , an investment
account.

Speaker 1 (21:21):
Ah , yes .

Speaker 3 (21:22):
So I'm sitting there at my desk on Thursday and then
on Friday I make a phone callto the financial advisor. Do
you wanna guess what my line ofthought was about? Can

Speaker 1 (21:31):
They wire the money out of the brokerage account
directly to the title company?

Speaker 3 (21:36):
Yes. Yeah . And, and hey, do you need to sell any
stocks Yeah . In thatinvestment account to create
the cash that you can remit tothe title company? Because Well
, yeah. Yeah. Wait, what? And ,and this, this is all about
that level of care. It , Iwould imagine many a mortgage

(21:59):
lender not acuate , would belike, see you at the closing
table on Wednesday. Yeah . Hopeyou figure it out to get there.
Right . But it's not just aboutbeing at the closing table on
Wednesday. We are, we aremindful of, and how will we get
there? 'cause if the client,the person

Speaker 1 (22:16):
And the money, just by the way, I mean

Speaker 3 (22:18):
Not , I haven't picked up a client yet to

Speaker 1 (22:20):
Get the referral .
Okay . Did you drive

Speaker 3 (22:21):
Him to the closing ?
I mean, I , I guess I,

Speaker 1 (22:23):
It's not outside .
We've gone to hospital room .
We have gone to hospital roomsto have people sign. You know,
you know , you have to assessare they gonna make it or not?
But that's, they do. Wow .

Speaker 3 (22:33):
Anyway, enough to sign their names . So

Speaker 1 (22:34):
Did this, did , did they have to liquid it's stocks
?

Speaker 3 (22:37):
No, but I think but it's mu it's , it's informative
for our listening audience thatwhen you sell a stock, it's uh
, generally called t plus twotrade plus two days of
settlement. Oh ,

Speaker 1 (22:50):
Okay. Before that money's available.

Speaker 3 (22:52):
Well, yes. Your custodian has to like, it's not
just you sell it and you canlike liquidate and forward

Speaker 1 (22:58):
It and wire that money that day.

Speaker 3 (23:00):
You're right. The next hour. Right. There are
some, depending on thesecurities that you hold, maybe
it's T plus one. I don't thinkthere's t they've talked about
t plus zero. Oh. I don't thinkthat's, that's

Speaker 1 (23:11):
Not happen . The

Speaker 3 (23:11):
Future is not now yet on that. Okay. But I, I
imagine how this could gowrong, right. That our client
on Tuesday calls theirfinancial advisor like, yeah,
hey, can you wire the moneyover to the closing? No,

Speaker 1 (23:23):
No. Yeah. You gotta pay . You

Speaker 3 (23:24):
Don't have enough.
You , you got all, it's alltied up in Apple stock. We
gotta unwind that so that thecash is available to send over.

Speaker 1 (23:32):
It's the same thing with gift money sometimes. Yeah
. You know , when, if a parentis, you know, our preference is
to have the parents , uh, sendthe wire to the title company.
Yeah. But every once in a whileyou get no, no, no, no. I want
to give the gift to my, or youknow, it's in pro , it's kind
of already happening. Um, youknow, when we get involved and

(23:53):
, and so those gifts, you know,if you give somebody a check
for 50 grand, it it's notavailable the next day in their
account. No. And you got a planon that.

Speaker 3 (24:00):
Well, my version of that and I had a client, I was
like, 'cause every financialinstitution's got their
different, you know, steps.
Yeah . I have someone buying ahouse on Friday. Hey, I texted
him. I was like, it would beworthwhile for you to check in
with your financialinstitution. What are their
steps ? Do you need to signsomething, go into a branch,

(24:22):
give a blood sample? Yeah .
Like what is it that you needto do in order to provide
permission for that money toget wired? And it can be at the
same bank. Let's just pick onChase. You wanna wire $10,000,
maybe you can do that from youriPhone. You wanna wire a
hundred thousand dollars, yougotta walk into a branch and
they gotta get you a photo id.

(24:42):
And I'm making that up. Yeah.

Speaker 1 (24:44):
And maybe though, if it's a joint account, maybe
both people have to be there toauthorize a wire . So , but

Speaker 3 (24:48):
This is the level of care where it's like, let's
talk about, it's not just seeyou at the closing table. It's
you

Speaker 1 (24:53):
Figure it out. Yeah.
Yeah. And not, people don'twire very often, so that's why
you know, it it , they may havenever done it before.

Speaker 3 (25:00):
Well, and I think the onus is on us as the uh ,
mountain guide. Yeah. To belike, not just like there's the
top good luck, but like, getthere. Let me walk you up there
as well.

Speaker 1 (25:11):
Alright, when we come back, let's talk a little
bit about , uh, Fannie Mae'slatest , uh, on where the real
estate market and interestrates are going. You're
listening to the AcademicMortgage and Realty Show on the
biggest stick in the state AMsix 20 WTMJ.

Speaker 2 (25:29):
Important home buying questions and answers
you can count on. This is theAccu Net Mortgage and Realty
Show with Brian Wicker on WTMJ.

Speaker 1 (25:39):
Thanks again for tuning into today's show, which
is the actual birthday ofacademic mortgage LLC 25 years
ago.

Speaker 3 (25:46):
Academic mortgage.com. LLC .

Speaker 1 (25:48):
Well that's right .
You are correct. It was alltogether at that time. That's
when being a.com was cool in1999. Yeah, man.

Speaker 3 (25:55):
Competing against elo. elo, right?

Speaker 1 (25:57):
Yeah. Whatever happened . A lot of , a lot of
lenders aren't here.
Countrywide. Washington Mutual.

Speaker 3 (26:03):
If you want an interesting , uh, sequence of
history, just look at the top10 lenders every 10 years. Ah ,
the names come and go there.

Speaker 1 (26:13):
You gore still here , but here we remain . Here we
are . Alright , so , um, one ofthose names that's still here,
barely is , uh, Fannie

Speaker 3 (26:21):
Mae having put , having been put on life
support. Yeah.

Speaker 1 (26:24):
Uh , which is a place I worked for the longest
year of my life , uh, in 1984.

Speaker 3 (26:29):
Do they have a Milwaukee office at the time?

Speaker 1 (26:31):
No, no. I was working out of my basement. The
same basement office in which Istarted academic mortgage. They
had an office in Chicago. SoI'd go down there every once in
a while . But I was a salesrep, you know, calling on , uh,
Wisconsin area banks. And , uh,it was a great job, actually
enjoyed it. But they've had ateam of economists there at
Fannie Mae that have thetemerity to predict the future
every month. And they'veactually won some awards for

(26:54):
how least wrong they are. And so they just came
out , uh, last week with theirmost recent forecast. And uh ,
and here it's, they are callingfor , uh, this year's total
number, 2024 total number ofexisting home sales. So they're
counting , uh, single familydetached condos. And this thing

(27:15):
that they have in New Yorkcalled co-Ops, there's gonna be
about a 1.9% increase in thenumber of existing homes that
change hands in 2024. So abouta 4.168 million nationwide.
Mm-Hmm . . Uh ,so that's compared to 2023. And
uh, and then they're callingfor 2025 to be 9% better .

(27:39):
Okay. So units , yeah. Numberof units. So they're saying,
Hey, we're gonna go from, youknow, let's call it 4.17 up to
4.5. So I would call that amodest, you know, increase in
that. Well , it's almost doubledigits. Yeah . 9% isn't
nothing. No. And and that'sbecause they are at the same
time predicting , uh, the 30year fixed rate mortgage to,

(28:00):
I'm gonna call it inchdownward. Um , averaging about
6.8 here in the third quarterof this year. And remember I
said we could do 6.99 with an APR of 7.02 , uh, as of the
close of business Friday , um,with all the right stuff. And
uh, that was with no points.

(28:20):
And who knows this , thenumbers that they use have
points in 'em . They just don'ttell you how many. Um , and
then they have an inching downto 6.7 by the fourth quarter
and then gently downrespectively in each quarter of
20 25, 6 0.5, 6.4, 6.3 and thenending 2025 at 6.2. So, you
know, that's why they'resaying, hey, affordability will

(28:42):
get better. Uh , so thereshould be some more existing
home sales. By the way, theypredict only 639,000 new single
family home sales this year.
That is pathetic. It used tobe, when we started the
company, you could count on amillion new construction home

(29:03):
sales every month. And eversince the housing crisis year.
Yeah. Per month. Yeah. Thankyou. Per year. And ever since
the housing crisis drove thatdown to under 400,000, we have
never gotten back up toanywhere near the pace No . Of
new construction to solve ourhousing shortage. So, you know,
bottom line is they'repredicting a modest increase in

(29:25):
existing home sales. Um, andupward pressure. They're
predicting home prices willrise. Our value's 3%. Right .
You take on all that . Well,

Speaker 3 (29:33):
The counter is , uh, some relief in rates leading to
affordability. Mycounterargument will be buyers
take that as an opportunity tocontinue to bid strongly in
order to win. Right. So even ifrates abate, if afford the cost

(29:53):
goes, if the same widget costsmore, you flat.

Speaker 1 (30:00):
Well, and of course this all depends on where you
are shopping. You showed me aheat map , uh, that Forbes put
together that clearly showsSouthwest Florida.

Speaker 3 (30:11):
Yeah. You want a deal. Yeah. People in southwest
Florida would love to talk toyou many

Speaker 1 (30:16):
Days on market.
'cause somehow for whateverreason, the the demand and
supply are in the favor of thebuyer. Yeah . Down there. The
days on market is reallystretching out probably. 'cause
people are still wanting tofetch last year's prices and
that's not what buyers arewilling to pay anymore. No. So
, um,

Speaker 3 (30:35):
I have, I have Fannie Mae's , uh, forecast
from January of this year. Doyou want me to tell you what
they thought rates were gonnabe right now? They thought
rates were gonna be at six even

Speaker 1 (30:44):
And now they're saying 6.8. They're old .
They're just early. They'rejust a year and a half early.
Yeah. Right. Okay. So that's agood point. It's just their
best guess at the time. Well ,I know.

Speaker 3 (30:54):
I just don't think, I don't want our clients. I I
share with buyers that gettingin the home now is chapter one
in this book Akon . It's beenaround for 25 years. Do you
have any idea how many clientswe have helped Multiple times?
Yeah. We have clients thatwe've helped manys a dozen

(31:15):
times Yeah . In 25 yearsbecause they bought the house.
Refinance, refinance,refinance, refinance, bought a
new home. Refinance, refinance,refinance. Yeah . It is
chapters in a book and ourcouncil has always been by the
house for the reasons that arereal life. And then when the
opportunity presents itself andwhen Fannie Mae's economists

(31:36):
are correct, we'll call you belike, Hey, you want that lower
rate?

Speaker 1 (31:40):
It's available now.
Yeah. Alright. When we comeback , uh, speaking of that,
I've got a repeat customercoming back for refi of a condo
, uh, up in , uh, do county.
We'll talk about that. You arelistening to the Academic
Mortgage and Realty Show on AMsix 20 WTMJ.

Speaker 2 (31:56):
Find a place to call home without the headache. This
is the ACU Net Mortgage andRealty Show with Brian Wicker
on WTMJ.

Speaker 1 (32:04):
Welcome back and thanks again for joining us on
this , uh, 25th anniversaryedition of Academic Mortgage.
The company and , uh, Davidlast week had mentioned that I
had gotten a call from a pastcustomer looking to refinance
his , um, mortgage on a condoin Door County. And this is a
condo project that we've loanedin before. He had bought his

(32:27):
unit , uh, seven years ago witha seven year arm. And now he
got the letter in the mail thatsaid, Hey, your rate's gonna
increase to 7.75 and then itcan in , it can jiggle around
yearly after that. Yeah . Andso I'd made him some , uh,
showed him some proposalsranging from 6.99, you know,

(32:47):
all the way up to 7.625. Andthat seven and a half seemed to
be a nice , uh, uh, number inthe middle, which would
actually result in his paymentgoing down because we're
retching his loan back out to30 years. Sure. And this isn't
about the interest rate or theinterest cost to him. This is
just about I don't want mypayment to go up. You know,

(33:08):
I've, I got my lifestyle and Iwould like to lock in payment ,
uh, certainty. Yes. Uh, forthis investment. And by the
way, we may only have thisplace for another four years.
Fine . So it didn't make sensefor him to pay up to get a
lower rate. No. And since thisis a second home, it doesn't
get priced as well. No . As aprimary residence.

Speaker 3 (33:28):
But again, he kind of was like, Hmm , doesn't
matter. I'm , that's not allfor cash flow stability .

Speaker 1 (33:31):
So when I, so he , he , uh, call or no, he emailed
him , emailed me or texted meand said Go ahead and, and get
my credit report so you can runyour automated underwriting.
'cause I said we might get,he's got like way over 50%
equity. I said we might get anappraisal waiver. Mm-Hmm.
, sure enough. Iput it through Fannie Mae's
automated underwriting system.
Bam. I get the appraisalwaiver. I'm like, this is
awesome. That saves him 475bucks. We can get this done all

(33:56):
in for about $950. This isgonna be great. Yeah . Then I
start poking around and I findout that , um, this development
has gone so well. The builder'snow doing another phase
, which, which puts it into theOh. 'cause I thought it was
gonna be a , um, establishedproject. Yeah. So now it's not

Speaker 3 (34:17):
New again.

Speaker 1 (34:18):
Right. And then I'm thinking because the last unit
we, we didn't do the originalpurchase loan for him. You got
a question.

Speaker 3 (34:24):
Can I just say the reason why it's an issue is
it's great that your condosubject property is okay, but
if the builder starts buildingnew ones, then starts losing
their shirt and giving thosenew units away

Speaker 1 (34:37):
For at discount

Speaker 3 (34:37):
Prices. At discount prices, it can hurt your condo.
Right .

Speaker 1 (34:42):
Value. So even though Fannie Mae and Freddie
Mac are both still wards of thestate , um, Freddie Mac has a
cool difference where if you'relooking at a two unit building
within a larger complex, onlythose two units have to be
complete in order to financeone of the two units. Yeah.
Whereas with Fannie Mae, moreof the units have to be

(35:03):
complete. So I run it throughFreddie Mac, no appraisal
waiver.

Speaker 3 (35:07):
You're not, but you're not even particularly
worried about value. It wouldjust be nice to save the money.

Speaker 1 (35:11):
That's right. So long story short, then I
reconnect with the client.
Turns out it's the rare singlefamily condo.

Speaker 3 (35:20):
Wow. Yeah. Rare bird.

Speaker 1 (35:22):
So it's not a side by side . It's a single
standalone condo, in which caseI don't need no stinking condo
review at all.

Speaker 3 (35:31):
It's treated like a single family

Speaker 1 (35:33):
Home . That's right.
So now I can go back to FannieMae. So there you go. Details
matter. Details matter. And youknow, we've got more than one,
one solution. We're alwaystrying to find the least
expensive, most expedient wayto do things for people. Of
course . Alright , that's allthe time we have for today's ,
uh, show. David, thanks againfor , uh, being on the show. Oh
yeah. For the umpteenth timehere. starting the next

(35:55):
25 years. Next week tomorrow,you've been listening to the
Academic Mortgage and RealtyShow on AM six 20 WTMJ. The
proceeding was a paid program.
Advice and opinions expressedduring the Accu Net Mortgage
and Realty Show are solely thatof the host or guests of
academic mortgage and academicRealty advisors and not WTMJ
Radio or Good Karma Brands.

(36:16):
Milwaukee, LLC.