November 24, 2025 • 27 mins
In this Real Estate Rundown, recorded a week ago, Zach and Patrick break down two major housing stories driving today’s real estate headlines: the federal government reopening after a 43-day shutdown and Trump’s proposed 50-year mortgage plan. They unpack how the shutdown backlog could slow closings, delay USDA and flood insurance approvals, and cloud mortgage rate movements, then dive into whether ultra-long mortgages help buyers or lock them into decades of extra interest. If you care about housing affordability, mortgage trends, real estate investing, or the future of homeownership, this episode gives you a clear, no-nonsense look at what these moves mean for buyers, sellers, and rookies learning the game.
NPR 50-Year Mortgage Article: Here
Realtor.com Shutdown Article: Here
Learn More https://innago.com/podcast/
https://joincohorts.com/
Sponsors:
Innago is a free, online property management software designed for landlords, particularly those managing small to medium-sized portfolios. It offers a range of features to simplify tasks like rent collection, lease management, maintenance requests, and tenant screening.
Ledgre is an All-in-One Accounting Software Built for Rentals. Organize property transactions, track expenses, and automate rental accounting with simple software focused on your industry.
Cohorts where serious real estate leaders level up. Join a curated peer group of founders, principals, and GPs who meet monthly in small, high-value circles. No fluff—just real insights, real accountability, and direct access to people who’ve done it before.
Follow us on Instagram
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
SPEAKER_00 (00:35):
What's going on, everybody?
Welcome to season two of theRentish Podcast.
I'm Zach here with my co-hostPatrick.
SPEAKER_03 (00:41):
We're two rookies chasing the dream of real estate
investing.
In this podcast, we'll talkabout property management, wild
stories, and everything inbetween.
We don't know it all yet.
SPEAKER_00 (00:50):
But that's the point.
We're learning as we go, justlike you.
We'll bring in the experts toeducate and inform us and we'll
figure it out together.
So let's laugh, learn, and diveinto real estate side by side.
I was waiting for you to ask mehow I was, because last week's
episode, you were so eager toask me how my day was going.
Yeah, I don't really care today.
No, just totally flip-flop.
(01:10):
You're like, I don't reallycare.
Well, how are how no no no no?
I insist.
How is your day?
Still pretty tired.
I'm doing good.
It's a lovely fall day here inCincinnati.
It's, you know, it's nice andit's got that crisp, cool air,
but it's also nice and sunny.
I'm just enjoying the lastrespite that we have of like the
(01:32):
leaves being all pretty and itit being like hoodie weather
outside without needed likeneeding to warm up my car for 15
minutes before I leave for work.
SPEAKER_03 (01:40):
Monday or Tuesday this week where it just like
snowed.
SPEAKER_00 (01:42):
Yeah, Sunday evening.
I I went to go see uh I went togo see Begonia.
SPEAKER_03 (01:46):
Yes.
SPEAKER_00 (01:47):
Great movie.
Great movie.
Loved it, it was so fun.
Leaving the movie, it was like 9p.m.
or something like that at night,and it was uh snowing when we
left the theater.
And I was like, this is just themost magical thing ever.
Leaving the movie to the firstsnow of the year, it was just
like quiet in the air, and I waslike, this is great.
But then of course the next dayit was like snow everywhere,
yeah, driveway was screwed.
SPEAKER_03 (02:08):
No, I was I was pissed because I was like, we
were we're supposed to have adeal where we had like three
more weeks of fall, and Ithought I thought it was getting
cut short, but luckily, youknow, fall rebounded.
SPEAKER_00 (02:19):
I don't remember.
Did Punk Sita?
What did what did that fool haveto say about uh winter this
year?
Did he say that we were gonnaget an early winter?
Is he the spring?
Yeah, it's like isn'tgroundhogs.
Six more weeks of winter.
Six more weeks of winter.
SPEAKER_03 (02:30):
That's right.
SPEAKER_00 (02:31):
So we don't we're not gonna hear from Punk
Satanians.
SPEAKER_03 (02:34):
He should he should clock in on in the fall too and
let us know how much.
SPEAKER_00 (02:37):
Well, we we can't give the groundhogs everything.
So it's like, well, if thegroundhog predicts the spring,
what animal are we getting topredict the fall how long the
fall?
It's like, do we get six moreweeks of fall or do we get an
early winter?
That's a good question.
I'm I'm down to create a newnominate an animal.
SPEAKER_01 (02:52):
Maybe those animals are called meteorologists
because they get it wrong.
SPEAKER_00 (02:56):
You want to say you want to try saying that word
again, buddy?
SPEAKER_01 (02:59):
Meteorologist.
The human animal.
SPEAKER_00 (03:04):
I don't I don't think you're pronouncing every
syllable in that word, butmeteorologist?
SPEAKER_01 (03:09):
There you go.
Nailed it.
SPEAKER_00 (03:10):
Perfect.
SPEAKER_01 (03:11):
Yeah.
SPEAKER_00 (03:11):
Meteorologist.
SPEAKER_01 (03:13):
I know my stuff.
Oh, yeah, you do.
Yeah.
SPEAKER_00 (03:15):
That's pretty assuming we say on the third
mic, by the way.
Well, it's gonna be a funepisode.
Well, we got two news articlestoday.
Before we jump into the newsthat we're gonna talk about,
remember to follow the podcaston your podcast platform of
choice.
Email the show, questions at therentish pod.com.
Give us a rating, give us athumbs up, a five-star review, a
ten star review, whatever yourpodcast service offers you to
(03:37):
do.
Just let people know that youlike the Rentish Pod.
Let a friend of yours know thatwe do this fun little show.
Maybe they're into propertymanagement, maybe they're a
newer landlord, maybe they'rejust wanting to get into the
industry.
Just let them know about theshow.
All right.
Uh, do we have a title for thenews?
What was it?
Real Real Estate Roundup.
Rundown.
Roundup.
Woody's Roundup.
unknown (03:57):
Come on.
SPEAKER_00 (03:57):
But anyway, Woody's Roundup.
Or what is it called?
News Real Estate Rundown.
We changed the name to Woody'sRoundup.
I think that'd be funny.
Today on the real estaterundown, we've got two
interesting articles thatPatrick and I are going to dive
into.
Trump's 50-year mortgage plan.
We're going to talk about theaffordability of that or if it's
a trap.
And then we're also going to goover the U.S.
(04:18):
government reopening after the43-day shutdown and what it
means for housing.
So, Patrick, are you ready toget into the rundown?
SPEAKER_03 (04:25):
Yeah, sounds sounds important.
SPEAKER_00 (04:26):
Yeah, this is uh this is this is interesting.
That when the producers handedus these articles, they were
like, we want these guys to talkabout this.
Really?
I don't know.
So we're gonna do our best.
SPEAKER_03 (04:38):
I'm excited to hear our ideas and our opinions.
Right, yeah, I'm sure.
SPEAKER_00 (04:43):
All right, so Trump's 50-year mortgage plan,
affordable or trapped.
The Trump administration wantsto launch a 50-year mortgage
option, which is the longestever proposed for U.S.
home buyers.
Why?
To make monthly payments cheaperand widen access to home
ownership.
But the trade-off, of course,massively more interest paid
over time and a much slower pathto building wealth.
(05:03):
Yeah.
So, Patrick, 50-year mortgage.
This has been in the news.
This has been a thing.
People were talking about it.
This is not the first timeyou're hearing about it.
SPEAKER_03 (05:12):
No, it was brought up to me earlier today before I
get right after lunch.
Oh, really?
No, wait, what am I supposed toknow before lunch?
SPEAKER_00 (05:20):
I had heard about this over the weekend, and my
friend, my friend group wasnaturally kind of talking about
this in a way.
SPEAKER_03 (05:26):
No, I literally found out about it with the
podcast.
SPEAKER_00 (05:28):
Okay, well, then it's even better.
So, what was your initialreaction?
Okay, yeah.
SPEAKER_03 (05:32):
My initial thought is 50 years is that's insane.
Because like, let's say mostpeople, let's let's even say the
age that you buy your firstproperty is let's say even early
20s, which is really early, likesay early 20s, especially now,
yeah.
Really early.
Yeah, that means you're in yourearly 70s when you've got that
paid off.
(05:52):
It's like, what is then thepoint building up this equity
and like paying so much extramoney in interest when you could
probably just have used thatmoney in rent payments alone,
you know, of the amount you'repaying in interest and saved up.
Yeah, I don't know.
To me, it's and like to just toplay devil's advocate.
I guess I appreciate thatsomething is being tried.
Like, you know, at least it'sthey're taking action.
(06:14):
I don't know that this is thebest course of action, but
they're trying something, whichI guess is sure.
Maybe I don't know.
SPEAKER_00 (06:21):
It is kind of easy to be like the knee-jerk
reaction to hearing 50-yearmortgage is like, that's silly.
That's like that you're payingso much extra money, you're
gonna be.
I'm 31 years old, so I'mthinking about it from my
perspective.
I'm like, I'm in like my 80swhen I pay this house off, and
I'm like, that is that isunfathomable to me that that I
would ever pick an option likethat.
(06:42):
That being said, there are a lotof really fascinating, I think,
devil's advocate conversationsthat you could have about this,
especially in terms of just theway that home ownership could be
changing in the next 10, 20, 30,40, 50, 60, 70 years.
I mean, the with inflation andrising costs and the
unaffordability of homeownership and all this these
(07:04):
questions, it's like less peopleare buying starter homes to like
get a home, increase theirequity, sell that, move into
another house.
Someone could feasibly pay alower monthly cost to own a
property and just be like, Well,this is my forever home, and
just live there.
SPEAKER_02 (07:19):
Yeah.
SPEAKER_00 (07:19):
It's interesting.
There's lots of interestingarguments, but let's dive into
the article and see what theyhave to say about it.
So, housing affordability iskind of at a breaking point, is
basically the overall kind ofgist of the article.
Mortgage rates still high, homeprices are continuing to climb,
and first-time buyers are beingpushed out of the market.
So the plan targets the monthlypain.
(07:39):
So, like that big mortgagepayment hit in your account, but
still raises big questions aboutlong-term cost.
FHFA director Bill Poulty, Ithink I'm pronouncing that
right.
Apologies, Bill, if I messed upyour name, he's calling it
quote, a complete game changer,end quote.
Which is just uh quite thequote.
Critics say it's a financialquicksand.
So here's what it does, Patrick.
(08:01):
On a$400,000 home with 6.25interest and 10% down, a 50-year
mortgage could cut payments byaround$250 a month, but you'd
pay$378,000 more in interestcompared to a 30-year loan,
which is about 86% more over theentire life of the loan.
SPEAKER_03 (08:19):
And and already on a 30 day, 30-day loan or thirty
sorry, 30-year loan, you'repaying so much in interest.
Right.
That to me says trap more thanmore than like an actual game
changer to quote FHFA director.
SPEAKER_00 (08:35):
Right.
And I'll continue to just asjust point of discussion to be
like the devil's advocateargument here.
$250 a month in this currenteconomy is could be a lot for a
family.
No, that is that is fair.
That's a grocery bill, perhapsfor two weeks.
I mean, maybe more.
It's like that could be, youknow, the cost of paying for
(08:56):
other utilities, necessitiesaround the wintertime, back to
school.
You see a cheaper price on a ona sheet of paper.
It's like I can see thatenticing a lot of people out
there.
All of those statistics puttogether, that's assuming the
same rate.
So in reality, 50-year loanswould actually carry higher
interest.
So most of the early years,you're paying mostly paying
interest and not building thatequity.
(09:18):
Right.
Which is what people talk aboutall the time with home
ownership.
Here's why it's being proposedit gives buyers a lower monthly
hurdle and could expand accessto homes, offers a political win
on affordability withoutimmediate spending.
With home buyers getting older,median age is now like 40 for
first timers.
So the pressure to find a fix iskind of mounting and gaining
(09:39):
traction.
SPEAKER_03 (09:39):
I would be interested though to see, like,
for example, like I'm I'm ayoung person, I'm in my 20s, and
like the first thing I'mthinking of is if this if these
are the only two options, let'ssay renting and a 50-year loan,
I'm choosing renting for therest of my life.
Okay.
Like I just feel like 50-yearloan, you're you're paying so
much in interest, where I couldjust be paying that in rent and
(10:01):
then build out equity in otherways, is is my immediate
thought.
Cause just like fit like 30years is already a long time,
but adding an extra 20 years tothat, I'm in the age group that
would be like the audience forthis.
But I would be interested to seelike what actually happens with
this and how much it's gonna bea fascinating world that we're
about to move into.
Yeah, how much if this gainstraction at all?
(10:22):
Yeah, if it gains a lot oftraction, that you know, maybe
people feel differently.
I'm I'm really not sure.
SPEAKER_00 (10:26):
Yeah, it'll be interesting too if it's like
we're gonna get sci-fi withthis.
You ready for this?
You ready to get sci-fi?
Let's do it.
What if the Einstein protegecomes out and is like, we have
discovered a way to moveconsciousness from the brain?
Why is he telling Dracula?
We have moved consciousness.
Dracula, Dr.
(10:48):
Acula.
Oh, but it's like, what if we'reable to extend life longer,
lifespan gets longer?
So it's like a 50-year-old50-year loan for a 20-year-old
and gets them into the homemarket early, and then it's
like, sure, maybe they're 70,but then the average lifespan of
(11:09):
the human could be like 120.
SPEAKER_03 (11:11):
Yeah, right.
That's a really, really goodpoint, Zach.
I mean, the whole thing's reallyinteresting, and and part of me
is like wondering, because I I'mI'm over it's easy to like say
that this is you know, justpoint out all the flaws here.
Oh, sure.
But like at the same time, it'sjust like things seem to be
going out of control, like pricewise.
I mean, the median age being 40.
Right.
That's a lot.
(11:32):
That the I we can all attestthat housing prices have been
going up and up and up and up.
So it's just like, what like, doI have a practical solution?
Like, even though I don't thinkthis is one.
No, I don't.
So no.
I don't know what your what yourthoughts are on that.
SPEAKER_00 (11:45):
No, I I generally agree.
I mean, I think that for me inmy personal situation where I'm
at, given that base number oflike$250, like looking at a$300,
like a$400,000 home, loweringthe cost by$250 a month, that
number is not enticing enough tome right to sign the deal with
the devil.
Right.
So it's like, but if that numberwas even more, I don't know.
SPEAKER_03 (12:09):
I guess to a certain extent, like if you're building
like generational equity, youknow, if you wouldn't have been
able to buy a house otherwiseand you're just renting for the
rest of your life, and then butthis is the only other option
you have, and then your kids areset with a fully paid off house.
Sure.
SPEAKER_00 (12:23):
You know, like that that that's I think that's
probably gonna be one of the bigenticing factors for a lot of
people is just the idea of like,well, the market's crazy now,
but at least I'm securing thisfor my family and yeah, that is
a very fair point.
SPEAKER_03 (12:35):
If if like your only other like you would never have
been able to buy otherwise, Imean I could I could see that.
Yeah.
SPEAKER_00 (12:40):
It's definitely interesting.
I mean, obvious, controversialthings extends debt for two
extra decades, delays wealthbuilding and equity, puts
borrowers deeper into long-terminterest payments, and a lot of
people see it as a gift to banksand not buyers.
So low supply, high investorownership, and unaffordable
markets.
It like uh this is basicallydodging those root issues of
what's going on.
(13:00):
So it's basically getting out ofthe way of like finding an
actual practical solution andsaying, like, well, we have this
option.
It's like it's clearly gonna bea test bed, right?
But my prediction, just sayingthis, I bet these are popular.
You think so?
I think so.
Okay.
I think more popular than weexpect them to be.
Uh I'm not saying that it'sgonna be like the new basis, but
I can see this being enticingenough to people where they're
(13:22):
like, what do I care that I'mpaying more over time?
Right now, I'd like to buy ahome and not live in this crappy
apartment.
Yeah.
I feel like there's gonna be alot of people that are gonna
make whatever justification theymeet, they need to get to go
through that.
Just a thought.
I know that a lot of my financefriends at Ben, if you're
listening to this podcast,buddy, I'm sorry that I'm even
like floating the idea outthere.
(13:43):
But if these kind of argumentsare out there, I mean here's
something.
SPEAKER_03 (13:46):
I just thought of this actually.
Here's something that I wouldlove to see as a positive from
this.
Let's just say in inhypothetically, people who are
renting long, long, long term,and this, let's say the price
that you would pay in this50-year mortgage locked in,
let's just do a number 1600 amonth in the mortgage payment.
I'm just choosing a number.
And then let's say long term,like right now, your your price
(14:08):
of rent is 1600 and you and youdon't foresee buying a house in
the foreseeable future, youmight want shipped over.
Well, like, yeah, let me juststart paying a like a this
locked-in mortgage of 1600 forthe rest of my life.
I'm paying all this interest,but I don't care because I'm
just throwing my money away onrent, for example, you know, and
so they switch over to that.
And I guess the positive that Iwould maybe foresee from the
(14:28):
situation is uh sort of like acompetitive desire to lower the
rent costs, like for landlordslowering the rent costs, thus
making things easier for forrenters.
Because it's just like whenyou're a good point, when you
have this viable like 50-yearmortgage solution that might be
more enticing to a lot ofrenters to buy, it's just like,
well, now what's the what's thepro to renting?
(14:49):
Yeah, making it cheap, likemaking it more affordable.
That way people are moreattracted to to renting.
I could see that as a potentialpositive, but I think it's a
great point, producer musei.
SPEAKER_00 (14:59):
If if you're able to do some Google searching and
figure out how many Americansrent for the entire duration of
their life.
I don't know if that is uh likea quantifiable stat that you
could find out there, but like,yeah, that is an interesting,
compelling thing where it's likethere are people that probably
just due to their situation,maybe they want to do it, maybe
(15:19):
it's their that's the situationthat they're in in their life.
People do rent forever.
Yeah.
Like that, that is a thing thathappens.
So if this can be the enticingoption or be the motivational
factor for a landlord to reducethe cost of rent because there
is this other option availableto them, right?
I think that is definitely apositive.
Or I could see that being apositive.
SPEAKER_03 (15:40):
It makes, I mean, I have obviously I just thought of
(16:05):
this like two minutes ago, and Ihave no like data or you know,
really evidence at all to backit up, but it makes it makes
sense potentially.
I don't know.
SPEAKER_00 (16:12):
So why would I pay my landlord sixteen hundred
dollars when I could just paythe mortgage payment?
And it's like I'm probably nevergonna move, but it's like this
is all I need.
Yeah.
SPEAKER_01 (16:22):
According to multifamily executive, it said
it's hard to determine the exactnumber, but a 2024 report found
that 20% of renters expect to belifelong renters, a 33 increase
since 2021.
SPEAKER_00 (16:35):
That's high.
Yeah, right.
I I mean that's a sizable chunkof renters.
Right, yeah.
20%.
So what comes next, Patrick?
You might be asking.
I was asking that.
This is still just a proposal,it's not a policy.
So legal reviews are ongoing andit may actually require
congressional action.
We're not sure what's gonnahappen if banks or buyers are
gonna necessarily adopt it.
A lot of people are talkingabout it just kind of being a
(16:57):
political soundbite.
We don't really know if this isactually gonna be a viable thing
that a lot of people are gonnado.
We don't know if it's gonna gothrough.
And uh, you know, we'll we don'tknow if lenders are even gonna
offer that 50-year productwithout having that federal
backing.
So time will tell.
I think this is a big time willtell sort of situation.
If this thing does end up goingthrough, my personal opinion, I
think it will.
I think it's gonna be, again,like I said, more popular than
(17:20):
we expect, but probably not.
People are gonna look at it asbeing like just another form of
debt accumulation, yeah.
Just more extreme.
Who knows?
Yeah, I I think I'm largely,largely in agreement.
SPEAKER_03 (17:30):
I'll I'm very interested to see, like, just
you know, if this actuallypasses, like what kind of splash
it makes in its first likecouple of years.
SPEAKER_00 (17:37):
Yeah, the market is kind of all about the now.
So it's like I feel like a lotof people just figure, what am I
doing to kind of like make themost of the dollar that I have
in my pocket right now ratherthan think like, well, there's a
chance I could sell this home in30 years for X amount of money
and build that equity when it'slike maybe not.
Right.
Maybe we'll all be living inspaceships by then, and then the
(17:59):
housing market completelycollapses.
Sci-fi corner.
New segment.
We're gonna do the sci-fi cornerwith Zach.
SPEAKER_03 (18:06):
150-year-old people humans living in spaceships.
That's Zach's predicted future.
Yeah.
Next up.
US government reopens after43-day shutdown and what that
means for housing.
SPEAKER_00 (18:20):
You read that, you read that title very uh
seriously.
I was like, didn't that I wantedto have like the news ticker
behind you going on like put abut it put up.
SPEAKER_03 (18:27):
I mean, it's a pretty serious, you know,
serious episode.
Not that we have unseriousepisodes, but like all things
considered, like, you know,these are two very big articles.
SPEAKER_00 (18:35):
Very relevant articles, very of yeah, in the
big big moment in time.
SPEAKER_03 (18:40):
Yeah, but in case you didn't know, Zach, uh,
because you hadn't heard, thefederal government was shut down
for 43 days.
Did you did you miss it or didyou were you?
SPEAKER_02 (18:50):
Did I miss it?
SPEAKER_00 (18:52):
I just, you know, it was like day 32.
I was like, you know what?
I miss is the government.
I just really missed thatgovernment.
Uh I did hear about this.
SPEAKER_03 (19:02):
Yeah, they're but they're back open after a
record-long 43-day shutdown.
Congress passed a short-termfunding bill through ending the
standoff that froze essentialservices, including key housing
and economic programs.
Uh, so the good news is that thehousing market operations are
back online.
The the not so good news is thatuh backlogs, delays, and missing
(19:22):
economic data could impacteverything from closing to
mortgage rates.
So let's talk about why thatmatters.
The the shutdown froze criticalfederal services that prop up
the housing market.
Some of these are floodinsurance approvals were halted.
SPEAKER_00 (19:36):
That's scary.
SPEAKER_03 (19:37):
Yeah.
USDA rural loans were paused,economic reports were delayed,
which helped guide interest ratedecisions.
So all that kind of was was at astop for the during the
government shutdown.
So now that the agencies areopening, the system will reboot,
but it's not instant.
So it's it's gonna it's gonnatake some time.
SPEAKER_00 (19:57):
Uh well, I like the article referring to the system
rebooting like it's a computer.
It's like, have you triedturning the government on and
off again?
Maybe try clearing the break,clearing its cash.
SPEAKER_03 (20:09):
All right.
So what is resuming, you asked?
Did I hear you asked that, Zach?
Yeah, you did.
Yeah, I thought so.
Uh so the National FloodInsurance Program is back,
underwriting over 90% of U.S.
flood policies.
SPEAKER_01 (20:23):
Yeah, exactly.
SPEAKER_03 (20:23):
Uh yeah, I guess that's not.
I mean, we don't live in a superlike flood heavy area in one of
the city.
SPEAKER_00 (20:28):
Well, parts of Cincinnati are, like if you're
down by the river, but but yeah,I mean, compared to like
hurricane.
Yeah, exactly.
Right.
We're less impacted by thepeople like actually on ocean
properties.
Right.
So I guess that's not evensomething I've I've necessarily
thought about.
SPEAKER_03 (20:41):
But like for like, yeah, a good portion of the
states, you know, yeah, it couldbe a real uh you know, a real
worry.
Um, so USDA loans uh andguarantees resume for rural home
buyers, um, which is basically Ialready kind of covered a lot of
this.
Yeah, pending mortgageapplications and real estate
deals can finally move forward,and then federal economic data
like jobs reports will trickleback in.
(21:03):
But some reports like Octoberinflation are permanently lost,
which is kind of crazy.
Like there's just like a like awhole 40 to three-day period
where it's just like no data,didn't didn't happen.
Yeah.
I'm not an expert on like data,obviously.
So like I don't know how likewhat the data loss really means
for interest rates and stuff.
SPEAKER_00 (21:20):
You have to imagine there's gonna be tons of
residual effects, just kind oflike whether or not you feel or
you feel the impact of them onyour day-to-day life.
Certainly, behind the scenes,there's gonna be a lot of stuff
going on.
Government government employeesis a big thing.
I'm curious to see how like wekinda start hearing about, but I
mean, that's not necessarilyrelated to real estate and
property management, but it'sstill it's like there's a lot of
(21:41):
real people that were impactedby the government shutdown.
I'm just gonna be very curiousto see what happens.
SPEAKER_03 (21:46):
Yeah, for for sure.
I mean, it's it's being thatwith like the with workers being
in agencies being uh off, likeor just like not not uh
functioning for the past 43days.
Yeah, things like loanapplications, that's something
that there's weeks of pileupthat like are now it's back, and
so they'll be able to make theirway through it, but things are
delayed for you know for folks.
SPEAKER_00 (22:07):
Yeah, those uh those notaries, they're gonna have to
bust out their double stamp whenthey go like this.
They stamp all the papers likethat.
Yeah.
SPEAKER_03 (22:15):
So yeah, and so with insurance evaluations and
property policy processing, allthat all of that'll be backed up
as well.
Yep.
Uh and then buyers closing sooncould still face delays with
things like uh flood insuranceand USDA approval.
Right.
SPEAKER_00 (22:28):
Yeah, in terms of the property management or like
just the real estate aspect ofit for me personally, it's like,
yeah, I've been like kind ofthinking about getting you know
home buying and all that stuff,but still targeting next year.
But it's like, boy, am I gladthat I wasn't dealing with that
process right now.
As are, you know, I feelsympathy for anyone that was
like in the closing process oranything like that.
(22:48):
Like I'm sure right now, likethe last month has been pretty
hellish.
Right.
What about the impact rate onthe Fed?
SPEAKER_03 (22:54):
What about that, you ask?
Well, to that question, I'd saywhat about that?
The shutdown left the Fed flyingblind.
So September jobs report isdelayed, October inflation and
jobs data are likely gone forgood, and then the Fed's next
interest rate decision inDecember will rely on incomplete
or non-existing data.
Interesting.
So the inside the uncertaintymay cause mortgage rates to
(23:17):
hover as markets wait forsignals on the Fed's direction.
I mean, so I guess that makessense.
I mean, they're probably notgonna until you gotta wait, wait
it out for new data, more recentdata before they make any sort
of interest rate decisions.
Yep.
Which I don't know if that'slike necessarily a positive or a
negative, because obviously ifinterest rates are bound to
would have gone up, but it'sjust, you know, for people
(23:38):
buying now, it's maybe theycaught a lucky break, or maybe I
don't know.
That's just me thankful.
SPEAKER_00 (23:42):
I I would assume that I don't know what the data
is around like the interestrates around the winter time and
the holidays, too.
But it's like that's gonna bethat's gonna be crappy.
Or it's like once they dofinally get that data and then
things start to settle out, andit's like, oh, happy
Thanksgiving, and it's likehere, interest rate went up by
three percent.
SPEAKER_03 (23:58):
Like, I'm that's a good point.
SPEAKER_00 (24:00):
So it's like, I don't know, and that's a time
that people get hit hard allaround the country, just in
terms of like personal financesand other things going on, so
higher utility bills withheating for the winter, so it's
like I don't know, lots of lotsof uh, you know, lots of stuff
to keep monitoring there for thenext month or two.
SPEAKER_03 (24:17):
Right.
And it's and obviously this dealisn't a permanent fix, it's a
it's a short-term patch, but andso the market can breathe for
now.
But another round of shutdownthreats or policy fights in the
government uh could just beweeks away.
I mean, especially with thestate of the US government right
now, there's really no ideawhere things are are really
gonna go.
SPEAKER_00 (24:35):
Yeah, selfishly for no for no real estate reason.
I'm I'm hoping that things arechill for a little while.
Yeah.
Uh as someone that has a prettytwo pretty important flights
coming up, one in December, onein January.
I'm a little concerned that I'mgonna have to find like
contingency options.
SPEAKER_03 (24:52):
Yeah.
SPEAKER_00 (24:52):
Because like, yeah, government shutdown affecting
airports and airport travel andthe reduction in flights, like
that's an absolutely horrificthing that people have had to
deal with.
Yeah.
The residual effects ofsomething, the snowball effect
of something.
It affects more than just thereal estate market, but it's
definitely one of those bigthings that people need to
concern themselves with.
SPEAKER_03 (25:10):
So I'll leave our audience with those thoughts,
Zach.
SPEAKER_00 (25:14):
Do you have anything to add?
Nothing else really relevant toadd.
I think you did a great job.
Well, that's been anotherepisode of the Rentish Podcast.
Thank you all for listening tothe show.
Thanks for hanging around withPatrick and I as we talked about
the real estate news that youneed to know about.
Follow us on social media at theRentish Pod.
Email questions at therentishpod.com with your
(25:35):
feedback or topic suggestions orquestions for the two of us.
Like and subscribe on allpodcast platforms that are out
there.
Give us a rating, give us areview, leave us a comment.
Tell your friends about theRentish Podcast if you have a
friend or a family member that'sinto maybe you're sitting around
the table eating your turkeythis Thanksgiving holiday, and
you're like, Uncle Jim, hemanages a property somewhere.
(25:56):
I don't know.
It's like maybe he likesrentish.
Tell him about it.
But yeah, until next time, I'vebeen Zach.
That's been Patrick, and we'llsee you guys next time.
The Rentish Podcast is recordedin Cincinnati, Ohio.
Hosted by Patrick Giro and me,Zach Rotello.
Produced by Mousse Gabermescaland Charlene Mulcindani.
(26:18):
Edited by Elliot Mongenes.
Theme song by me, Zach Rotello.
What's going on, everybody?
Welcome to season two of theRentish Podcast.
I'm Zach here with my co-hostPatrick.
SPEAKER_03 (00:41):
We're two rookies chasing the dream of real estate
investing.
In this podcast, we'll talkabout property management, wild
stories, and everything inbetween.
We don't know it all yet.
SPEAKER_00 (00:50):
But that's the point.
We're learning as we go, justlike you.
We'll bring in the experts toeducate and inform us and we'll
figure it out together.
So let's laugh, learn, and diveinto real estate side by side.
I was waiting for you to ask mehow I was, because last week's
episode, you were so eager toask me how my day was going.
Yeah, I don't really care today.
No, just totally flip-flop.
(01:10):
You're like, I don't reallycare.
Well, how are how no no no no?
I insist.
How is your day?
Still pretty tired.
I'm doing good.
It's a lovely fall day here inCincinnati.
It's, you know, it's nice andit's got that crisp, cool air,
but it's also nice and sunny.
I'm just enjoying the lastrespite that we have of like the
(01:32):
leaves being all pretty and itit being like hoodie weather
outside without needed likeneeding to warm up my car for 15
minutes before I leave for work.
SPEAKER_03 (01:40):
Monday or Tuesday this week where it just like
snowed.
SPEAKER_00 (01:42):
Yeah, Sunday evening.
I I went to go see uh I went togo see Begonia.
SPEAKER_03 (01:46):
Yes.
SPEAKER_00 (01:47):
Great movie.
Great movie.
Loved it, it was so fun.
Leaving the movie, it was like 9p.m.
or something like that at night,and it was uh snowing when we
left the theater.
And I was like, this is just themost magical thing ever.
Leaving the movie to the firstsnow of the year, it was just
like quiet in the air, and I waslike, this is great.
But then of course the next dayit was like snow everywhere,
yeah, driveway was screwed.
SPEAKER_03 (02:08):
No, I was I was pissed because I was like, we
were we're supposed to have adeal where we had like three
more weeks of fall, and Ithought I thought it was getting
cut short, but luckily, youknow, fall rebounded.
SPEAKER_00 (02:19):
I don't remember.
Did Punk Sita?
What did what did that fool haveto say about uh winter this
year?
Did he say that we were gonnaget an early winter?
Is he the spring?
Yeah, it's like isn'tgroundhogs.
Six more weeks of winter.
Six more weeks of winter.
SPEAKER_03 (02:30):
That's right.
SPEAKER_00 (02:31):
So we don't we're not gonna hear from Punk
Satanians.
SPEAKER_03 (02:34):
He should he should clock in on in the fall too and
let us know how much.
SPEAKER_00 (02:37):
Well, we we can't give the groundhogs everything.
So it's like, well, if thegroundhog predicts the spring,
what animal are we getting topredict the fall how long the
fall?
It's like, do we get six moreweeks of fall or do we get an
early winter?
That's a good question.
I'm I'm down to create a newnominate an animal.
SPEAKER_01 (02:52):
Maybe those animals are called meteorologists
because they get it wrong.
SPEAKER_00 (02:56):
You want to say you want to try saying that word
again, buddy?
SPEAKER_01 (02:59):
Meteorologist.
The human animal.
SPEAKER_00 (03:04):
I don't I don't think you're pronouncing every
syllable in that word, butmeteorologist?
SPEAKER_01 (03:09):
There you go.
Nailed it.
SPEAKER_00 (03:10):
Perfect.
SPEAKER_01 (03:11):
Yeah.
SPEAKER_00 (03:11):
Meteorologist.
SPEAKER_01 (03:13):
I know my stuff.
Oh, yeah, you do.
Yeah.
SPEAKER_00 (03:15):
That's pretty assuming we say on the third
mic, by the way.
Well, it's gonna be a funepisode.
Well, we got two news articlestoday.
Before we jump into the newsthat we're gonna talk about,
remember to follow the podcaston your podcast platform of
choice.
Email the show, questions at therentish pod.com.
Give us a rating, give us athumbs up, a five-star review, a
ten star review, whatever yourpodcast service offers you to
(03:37):
do.
Just let people know that youlike the Rentish Pod.
Let a friend of yours know thatwe do this fun little show.
Maybe they're into propertymanagement, maybe they're a
newer landlord, maybe they'rejust wanting to get into the
industry.
Just let them know about theshow.
All right.
Uh, do we have a title for thenews?
What was it?
Real Real Estate Roundup.
Rundown.
Roundup.
Woody's Roundup.
unknown (03:57):
Come on.
SPEAKER_00 (03:57):
But anyway, Woody's Roundup.
Or what is it called?
News Real Estate Rundown.
We changed the name to Woody'sRoundup.
I think that'd be funny.
Today on the real estaterundown, we've got two
interesting articles thatPatrick and I are going to dive
into.
Trump's 50-year mortgage plan.
We're going to talk about theaffordability of that or if it's
a trap.
And then we're also going to goover the U.S.
(04:18):
government reopening after the43-day shutdown and what it
means for housing.
So, Patrick, are you ready toget into the rundown?
SPEAKER_03 (04:25):
Yeah, sounds sounds important.
SPEAKER_00 (04:26):
Yeah, this is uh this is this is interesting.
That when the producers handedus these articles, they were
like, we want these guys to talkabout this.
Really?
I don't know.
So we're gonna do our best.
SPEAKER_03 (04:38):
I'm excited to hear our ideas and our opinions.
Right, yeah, I'm sure.
SPEAKER_00 (04:43):
All right, so Trump's 50-year mortgage plan,
affordable or trapped.
The Trump administration wantsto launch a 50-year mortgage
option, which is the longestever proposed for U.S.
home buyers.
Why?
To make monthly payments cheaperand widen access to home
ownership.
But the trade-off, of course,massively more interest paid
over time and a much slower pathto building wealth.
(05:03):
Yeah.
So, Patrick, 50-year mortgage.
This has been in the news.
This has been a thing.
People were talking about it.
This is not the first timeyou're hearing about it.
SPEAKER_03 (05:12):
No, it was brought up to me earlier today before I
get right after lunch.
Oh, really?
No, wait, what am I supposed toknow before lunch?
SPEAKER_00 (05:20):
I had heard about this over the weekend, and my
friend, my friend group wasnaturally kind of talking about
this in a way.
SPEAKER_03 (05:26):
No, I literally found out about it with the
podcast.
SPEAKER_00 (05:28):
Okay, well, then it's even better.
So, what was your initialreaction?
Okay, yeah.
SPEAKER_03 (05:32):
My initial thought is 50 years is that's insane.
Because like, let's say mostpeople, let's let's even say the
age that you buy your firstproperty is let's say even early
20s, which is really early, likesay early 20s, especially now,
yeah.
Really early.
Yeah, that means you're in yourearly 70s when you've got that
paid off.
(05:52):
It's like, what is then thepoint building up this equity
and like paying so much extramoney in interest when you could
probably just have used thatmoney in rent payments alone,
you know, of the amount you'repaying in interest and saved up.
Yeah, I don't know.
To me, it's and like to just toplay devil's advocate.
I guess I appreciate thatsomething is being tried.
Like, you know, at least it'sthey're taking action.
(06:14):
I don't know that this is thebest course of action, but
they're trying something, whichI guess is sure.
Maybe I don't know.
SPEAKER_00 (06:21):
It is kind of easy to be like the knee-jerk
reaction to hearing 50-yearmortgage is like, that's silly.
That's like that you're payingso much extra money, you're
gonna be.
I'm 31 years old, so I'mthinking about it from my
perspective.
I'm like, I'm in like my 80swhen I pay this house off, and
I'm like, that is that isunfathomable to me that that I
would ever pick an option likethat.
(06:42):
That being said, there are a lotof really fascinating, I think,
devil's advocate conversationsthat you could have about this,
especially in terms of just theway that home ownership could be
changing in the next 10, 20, 30,40, 50, 60, 70 years.
I mean, the with inflation andrising costs and the
unaffordability of homeownership and all this these
(07:04):
questions, it's like less peopleare buying starter homes to like
get a home, increase theirequity, sell that, move into
another house.
Someone could feasibly pay alower monthly cost to own a
property and just be like, Well,this is my forever home, and
just live there.
SPEAKER_02 (07:19):
Yeah.
SPEAKER_00 (07:19):
It's interesting.
There's lots of interestingarguments, but let's dive into
the article and see what theyhave to say about it.
So, housing affordability iskind of at a breaking point, is
basically the overall kind ofgist of the article.
Mortgage rates still high, homeprices are continuing to climb,
and first-time buyers are beingpushed out of the market.
So the plan targets the monthlypain.
(07:39):
So, like that big mortgagepayment hit in your account, but
still raises big questions aboutlong-term cost.
FHFA director Bill Poulty, Ithink I'm pronouncing that
right.
Apologies, Bill, if I messed upyour name, he's calling it
quote, a complete game changer,end quote.
Which is just uh quite thequote.
Critics say it's a financialquicksand.
So here's what it does, Patrick.
(08:01):
On a$400,000 home with 6.25interest and 10% down, a 50-year
mortgage could cut payments byaround$250 a month, but you'd
pay$378,000 more in interestcompared to a 30-year loan,
which is about 86% more over theentire life of the loan.
SPEAKER_03 (08:19):
And and already on a 30 day, 30-day loan or thirty
sorry, 30-year loan, you'repaying so much in interest.
Right.
That to me says trap more thanmore than like an actual game
changer to quote FHFA director.
SPEAKER_00 (08:35):
Right.
And I'll continue to just asjust point of discussion to be
like the devil's advocateargument here.
$250 a month in this currenteconomy is could be a lot for a
family.
No, that is that is fair.
That's a grocery bill, perhapsfor two weeks.
I mean, maybe more.
It's like that could be, youknow, the cost of paying for
(08:56):
other utilities, necessitiesaround the wintertime, back to
school.
You see a cheaper price on a ona sheet of paper.
It's like I can see thatenticing a lot of people out
there.
All of those statistics puttogether, that's assuming the
same rate.
So in reality, 50-year loanswould actually carry higher
interest.
So most of the early years,you're paying mostly paying
interest and not building thatequity.
(09:18):
Right.
Which is what people talk aboutall the time with home
ownership.
Here's why it's being proposedit gives buyers a lower monthly
hurdle and could expand accessto homes, offers a political win
on affordability withoutimmediate spending.
With home buyers getting older,median age is now like 40 for
first timers.
So the pressure to find a fix iskind of mounting and gaining
(09:39):
traction.
SPEAKER_03 (09:39):
I would be interested though to see, like,
for example, like I'm I'm ayoung person, I'm in my 20s, and
like the first thing I'mthinking of is if this if these
are the only two options, let'ssay renting and a 50-year loan,
I'm choosing renting for therest of my life.
Okay.
Like I just feel like 50-yearloan, you're you're paying so
much in interest, where I couldjust be paying that in rent and
(10:01):
then build out equity in otherways, is is my immediate
thought.
Cause just like fit like 30years is already a long time,
but adding an extra 20 years tothat, I'm in the age group that
would be like the audience forthis.
But I would be interested to seelike what actually happens with
this and how much it's gonna bea fascinating world that we're
about to move into.
Yeah, how much if this gainstraction at all?
(10:22):
Yeah, if it gains a lot oftraction, that you know, maybe
people feel differently.
I'm I'm really not sure.
SPEAKER_00 (10:26):
Yeah, it'll be interesting too if it's like
we're gonna get sci-fi withthis.
You ready for this?
You ready to get sci-fi?
Let's do it.
What if the Einstein protegecomes out and is like, we have
discovered a way to moveconsciousness from the brain?
Why is he telling Dracula?
We have moved consciousness.
Dracula, Dr.
(10:48):
Acula.
Oh, but it's like, what if we'reable to extend life longer,
lifespan gets longer?
So it's like a 50-year-old50-year loan for a 20-year-old
and gets them into the homemarket early, and then it's
like, sure, maybe they're 70,but then the average lifespan of
(11:09):
the human could be like 120.
SPEAKER_03 (11:11):
Yeah, right.
That's a really, really goodpoint, Zach.
I mean, the whole thing's reallyinteresting, and and part of me
is like wondering, because I I'mI'm over it's easy to like say
that this is you know, justpoint out all the flaws here.
Oh, sure.
But like at the same time, it'sjust like things seem to be
going out of control, like pricewise.
I mean, the median age being 40.
Right.
That's a lot.
(11:32):
That the I we can all attestthat housing prices have been
going up and up and up and up.
So it's just like, what like, doI have a practical solution?
Like, even though I don't thinkthis is one.
No, I don't.
So no.
I don't know what your what yourthoughts are on that.
SPEAKER_00 (11:45):
No, I I generally agree.
I mean, I think that for me inmy personal situation where I'm
at, given that base number oflike$250, like looking at a$300,
like a$400,000 home, loweringthe cost by$250 a month, that
number is not enticing enough tome right to sign the deal with
the devil.
Right.
So it's like, but if that numberwas even more, I don't know.
SPEAKER_03 (12:09):
I guess to a certain extent, like if you're building
like generational equity, youknow, if you wouldn't have been
able to buy a house otherwiseand you're just renting for the
rest of your life, and then butthis is the only other option
you have, and then your kids areset with a fully paid off house.
Sure.
SPEAKER_00 (12:23):
You know, like that that that's I think that's
probably gonna be one of the bigenticing factors for a lot of
people is just the idea of like,well, the market's crazy now,
but at least I'm securing thisfor my family and yeah, that is
a very fair point.
SPEAKER_03 (12:35):
If if like your only other like you would never have
been able to buy otherwise, Imean I could I could see that.
Yeah.
SPEAKER_00 (12:40):
It's definitely interesting.
I mean, obvious, controversialthings extends debt for two
extra decades, delays wealthbuilding and equity, puts
borrowers deeper into long-terminterest payments, and a lot of
people see it as a gift to banksand not buyers.
So low supply, high investorownership, and unaffordable
markets.
It like uh this is basicallydodging those root issues of
what's going on.
(13:00):
So it's basically getting out ofthe way of like finding an
actual practical solution andsaying, like, well, we have this
option.
It's like it's clearly gonna bea test bed, right?
But my prediction, just sayingthis, I bet these are popular.
You think so?
I think so.
Okay.
I think more popular than weexpect them to be.
Uh I'm not saying that it'sgonna be like the new basis, but
I can see this being enticingenough to people where they're
(13:22):
like, what do I care that I'mpaying more over time?
Right now, I'd like to buy ahome and not live in this crappy
apartment.
Yeah.
I feel like there's gonna be alot of people that are gonna
make whatever justification theymeet, they need to get to go
through that.
Just a thought.
I know that a lot of my financefriends at Ben, if you're
listening to this podcast,buddy, I'm sorry that I'm even
like floating the idea outthere.
(13:43):
But if these kind of argumentsare out there, I mean here's
something.
SPEAKER_03 (13:46):
I just thought of this actually.
Here's something that I wouldlove to see as a positive from
this.
Let's just say in inhypothetically, people who are
renting long, long, long term,and this, let's say the price
that you would pay in this50-year mortgage locked in,
let's just do a number 1600 amonth in the mortgage payment.
I'm just choosing a number.
And then let's say long term,like right now, your your price
(14:08):
of rent is 1600 and you and youdon't foresee buying a house in
the foreseeable future, youmight want shipped over.
Well, like, yeah, let me juststart paying a like a this
locked-in mortgage of 1600 forthe rest of my life.
I'm paying all this interest,but I don't care because I'm
just throwing my money away onrent, for example, you know, and
so they switch over to that.
And I guess the positive that Iwould maybe foresee from the
(14:28):
situation is uh sort of like acompetitive desire to lower the
rent costs, like for landlordslowering the rent costs, thus
making things easier for forrenters.
Because it's just like whenyou're a good point, when you
have this viable like 50-yearmortgage solution that might be
more enticing to a lot ofrenters to buy, it's just like,
well, now what's the what's thepro to renting?
(14:49):
Yeah, making it cheap, likemaking it more affordable.
That way people are moreattracted to to renting.
I could see that as a potentialpositive, but I think it's a
great point, producer musei.
SPEAKER_00 (14:59):
If if you're able to do some Google searching and
figure out how many Americansrent for the entire duration of
their life.
I don't know if that is uh likea quantifiable stat that you
could find out there, but like,yeah, that is an interesting,
compelling thing where it's likethere are people that probably
just due to their situation,maybe they want to do it, maybe
(15:19):
it's their that's the situationthat they're in in their life.
People do rent forever.
Yeah.
Like that, that is a thing thathappens.
So if this can be the enticingoption or be the motivational
factor for a landlord to reducethe cost of rent because there
is this other option availableto them, right?
I think that is definitely apositive.
Or I could see that being apositive.
SPEAKER_03 (15:40):
It makes, I mean, I have obviously I just thought of
(16:05):
this like two minutes ago, and Ihave no like data or you know,
really evidence at all to backit up, but it makes it makes
sense potentially.
I don't know.
SPEAKER_00 (16:12):
So why would I pay my landlord sixteen hundred
dollars when I could just paythe mortgage payment?
And it's like I'm probably nevergonna move, but it's like this
is all I need.
Yeah.
SPEAKER_01 (16:22):
According to multifamily executive, it said
it's hard to determine the exactnumber, but a 2024 report found
that 20% of renters expect to belifelong renters, a 33 increase
since 2021.
SPEAKER_00 (16:35):
That's high.
Yeah, right.
I I mean that's a sizable chunkof renters.
Right, yeah.
20%.
So what comes next, Patrick?
You might be asking.
I was asking that.
This is still just a proposal,it's not a policy.
So legal reviews are ongoing andit may actually require
congressional action.
We're not sure what's gonnahappen if banks or buyers are
gonna necessarily adopt it.
A lot of people are talkingabout it just kind of being a
(16:57):
political soundbite.
We don't really know if this isactually gonna be a viable thing
that a lot of people are gonnado.
We don't know if it's gonna gothrough.
And uh, you know, we'll we don'tknow if lenders are even gonna
offer that 50-year productwithout having that federal
backing.
So time will tell.
I think this is a big time willtell sort of situation.
If this thing does end up goingthrough, my personal opinion, I
think it will.
I think it's gonna be, again,like I said, more popular than
(17:20):
we expect, but probably not.
People are gonna look at it asbeing like just another form of
debt accumulation, yeah.
Just more extreme.
Who knows?
Yeah, I I think I'm largely,largely in agreement.
SPEAKER_03 (17:30):
I'll I'm very interested to see, like, just
you know, if this actuallypasses, like what kind of splash
it makes in its first likecouple of years.
SPEAKER_00 (17:37):
Yeah, the market is kind of all about the now.
So it's like I feel like a lotof people just figure, what am I
doing to kind of like make themost of the dollar that I have
in my pocket right now ratherthan think like, well, there's a
chance I could sell this home in30 years for X amount of money
and build that equity when it'slike maybe not.
Right.
Maybe we'll all be living inspaceships by then, and then the
(17:59):
housing market completelycollapses.
Sci-fi corner.
New segment.
We're gonna do the sci-fi cornerwith Zach.
SPEAKER_03 (18:06):
150-year-old people humans living in spaceships.
That's Zach's predicted future.
Yeah.
Next up.
US government reopens after43-day shutdown and what that
means for housing.
SPEAKER_00 (18:20):
You read that, you read that title very uh
seriously.
I was like, didn't that I wantedto have like the news ticker
behind you going on like put abut it put up.
SPEAKER_03 (18:27):
I mean, it's a pretty serious, you know,
serious episode.
Not that we have unseriousepisodes, but like all things
considered, like, you know,these are two very big articles.
SPEAKER_00 (18:35):
Very relevant articles, very of yeah, in the
big big moment in time.
SPEAKER_03 (18:40):
Yeah, but in case you didn't know, Zach, uh,
because you hadn't heard, thefederal government was shut down
for 43 days.
Did you did you miss it or didyou were you?
SPEAKER_02 (18:50):
Did I miss it?
SPEAKER_00 (18:52):
I just, you know, it was like day 32.
I was like, you know what?
I miss is the government.
I just really missed thatgovernment.
Uh I did hear about this.
SPEAKER_03 (19:02):
Yeah, they're but they're back open after a
record-long 43-day shutdown.
Congress passed a short-termfunding bill through ending the
standoff that froze essentialservices, including key housing
and economic programs.
Uh, so the good news is that thehousing market operations are
back online.
The the not so good news is thatuh backlogs, delays, and missing
(19:22):
economic data could impacteverything from closing to
mortgage rates.
So let's talk about why thatmatters.
The the shutdown froze criticalfederal services that prop up
the housing market.
Some of these are floodinsurance approvals were halted.
SPEAKER_00 (19:36):
That's scary.
SPEAKER_03 (19:37):
Yeah.
USDA rural loans were paused,economic reports were delayed,
which helped guide interest ratedecisions.
So all that kind of was was at astop for the during the
government shutdown.
So now that the agencies areopening, the system will reboot,
but it's not instant.
So it's it's gonna it's gonnatake some time.
SPEAKER_00 (19:57):
Uh well, I like the article referring to the system
rebooting like it's a computer.
It's like, have you triedturning the government on and
off again?
Maybe try clearing the break,clearing its cash.
SPEAKER_03 (20:09):
All right.
So what is resuming, you asked?
Did I hear you asked that, Zach?
Yeah, you did.
Yeah, I thought so.
Uh so the National FloodInsurance Program is back,
underwriting over 90% of U.S.
flood policies.
SPEAKER_01 (20:23):
Yeah, exactly.
SPEAKER_03 (20:23):
Uh yeah, I guess that's not.
I mean, we don't live in a superlike flood heavy area in one of
the city.
SPEAKER_00 (20:28):
Well, parts of Cincinnati are, like if you're
down by the river, but but yeah,I mean, compared to like
hurricane.
Yeah, exactly.
Right.
We're less impacted by thepeople like actually on ocean
properties.
Right.
So I guess that's not evensomething I've I've necessarily
thought about.
SPEAKER_03 (20:41):
But like for like, yeah, a good portion of the
states, you know, yeah, it couldbe a real uh you know, a real
worry.
Um, so USDA loans uh andguarantees resume for rural home
buyers, um, which is basically Ialready kind of covered a lot of
this.
Yeah, pending mortgageapplications and real estate
deals can finally move forward,and then federal economic data
like jobs reports will trickleback in.
(21:03):
But some reports like Octoberinflation are permanently lost,
which is kind of crazy.
Like there's just like a like awhole 40 to three-day period
where it's just like no data,didn't didn't happen.
Yeah.
I'm not an expert on like data,obviously.
So like I don't know how likewhat the data loss really means
for interest rates and stuff.
SPEAKER_00 (21:20):
You have to imagine there's gonna be tons of
residual effects, just kind oflike whether or not you feel or
you feel the impact of them onyour day-to-day life.
Certainly, behind the scenes,there's gonna be a lot of stuff
going on.
Government government employeesis a big thing.
I'm curious to see how like wekinda start hearing about, but I
mean, that's not necessarilyrelated to real estate and
property management, but it'sstill it's like there's a lot of
(21:41):
real people that were impactedby the government shutdown.
I'm just gonna be very curiousto see what happens.
SPEAKER_03 (21:46):
Yeah, for for sure.
I mean, it's it's being thatwith like the with workers being
in agencies being uh off, likeor just like not not uh
functioning for the past 43days.
Yeah, things like loanapplications, that's something
that there's weeks of pileupthat like are now it's back, and
so they'll be able to make theirway through it, but things are
delayed for you know for folks.
SPEAKER_00 (22:07):
Yeah, those uh those notaries, they're gonna have to
bust out their double stamp whenthey go like this.
They stamp all the papers likethat.
Yeah.
SPEAKER_03 (22:15):
So yeah, and so with insurance evaluations and
property policy processing, allthat all of that'll be backed up
as well.
Yep.
Uh and then buyers closing sooncould still face delays with
things like uh flood insuranceand USDA approval.
Right.
SPEAKER_00 (22:28):
Yeah, in terms of the property management or like
just the real estate aspect ofit for me personally, it's like,
yeah, I've been like kind ofthinking about getting you know
home buying and all that stuff,but still targeting next year.
But it's like, boy, am I gladthat I wasn't dealing with that
process right now.
As are, you know, I feelsympathy for anyone that was
like in the closing process oranything like that.
(22:48):
Like I'm sure right now, likethe last month has been pretty
hellish.
Right.
What about the impact rate onthe Fed?
SPEAKER_03 (22:54):
What about that, you ask?
Well, to that question, I'd saywhat about that?
The shutdown left the Fed flyingblind.
So September jobs report isdelayed, October inflation and
jobs data are likely gone forgood, and then the Fed's next
interest rate decision inDecember will rely on incomplete
or non-existing data.
Interesting.
So the inside the uncertaintymay cause mortgage rates to
(23:17):
hover as markets wait forsignals on the Fed's direction.
I mean, so I guess that makessense.
I mean, they're probably notgonna until you gotta wait, wait
it out for new data, more recentdata before they make any sort
of interest rate decisions.
Yep.
Which I don't know if that'slike necessarily a positive or a
negative, because obviously ifinterest rates are bound to
would have gone up, but it'sjust, you know, for people
(23:38):
buying now, it's maybe theycaught a lucky break, or maybe I
don't know.
That's just me thankful.
SPEAKER_00 (23:42):
I I would assume that I don't know what the data
is around like the interestrates around the winter time and
the holidays, too.
But it's like that's gonna bethat's gonna be crappy.
Or it's like once they dofinally get that data and then
things start to settle out, andit's like, oh, happy
Thanksgiving, and it's likehere, interest rate went up by
three percent.
SPEAKER_03 (23:58):
Like, I'm that's a good point.
SPEAKER_00 (24:00):
So it's like, I don't know, and that's a time
that people get hit hard allaround the country, just in
terms of like personal financesand other things going on, so
higher utility bills withheating for the winter, so it's
like I don't know, lots of lotsof uh, you know, lots of stuff
to keep monitoring there for thenext month or two.
SPEAKER_03 (24:17):
Right.
And it's and obviously this dealisn't a permanent fix, it's a
it's a short-term patch, but andso the market can breathe for
now.
But another round of shutdownthreats or policy fights in the
government uh could just beweeks away.
I mean, especially with thestate of the US government right
now, there's really no ideawhere things are are really
gonna go.
SPEAKER_00 (24:35):
Yeah, selfishly for no for no real estate reason.
I'm I'm hoping that things arechill for a little while.
Yeah.
Uh as someone that has a prettytwo pretty important flights
coming up, one in December, onein January.
I'm a little concerned that I'mgonna have to find like
contingency options.
SPEAKER_03 (24:52):
Yeah.
SPEAKER_00 (24:52):
Because like, yeah, government shutdown affecting
airports and airport travel andthe reduction in flights, like
that's an absolutely horrificthing that people have had to
deal with.
Yeah.
The residual effects ofsomething, the snowball effect
of something.
It affects more than just thereal estate market, but it's
definitely one of those bigthings that people need to
concern themselves with.
SPEAKER_03 (25:10):
So I'll leave our audience with those thoughts,
Zach.
SPEAKER_00 (25:14):
Do you have anything to add?
Nothing else really relevant toadd.
I think you did a great job.
Well, that's been anotherepisode of the Rentish Podcast.
Thank you all for listening tothe show.
Thanks for hanging around withPatrick and I as we talked about
the real estate news that youneed to know about.
Follow us on social media at theRentish Pod.
Email questions at therentishpod.com with your
(25:35):
feedback or topic suggestions orquestions for the two of us.
Like and subscribe on allpodcast platforms that are out
there.
Give us a rating, give us areview, leave us a comment.
Tell your friends about theRentish Podcast if you have a
friend or a family member that'sinto maybe you're sitting around
the table eating your turkeythis Thanksgiving holiday, and
you're like, Uncle Jim, hemanages a property somewhere.
(25:56):
I don't know.
It's like maybe he likesrentish.
Tell him about it.
But yeah, until next time, I'vebeen Zach.
That's been Patrick, and we'llsee you guys next time.
The Rentish Podcast is recordedin Cincinnati, Ohio.
Hosted by Patrick Giro and me,Zach Rotello.
Produced by Mousse Gabermescaland Charlene Mulcindani.
(26:18):
Edited by Elliot Mongenes.
Theme song by me, Zach Rotello.
Popular Podcasts
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.