Swing State Voters say NO to Bidenomics

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Episode Transcript

Speaker 1 (00:01):
All right, before we get into the big stories of
the day, I just have to say I got to
see one of the coolest things I've ever gotten to
see in my entire life, and that was this eclipse.
Oh my goodness, if you didn't get to see it,
you better not miss another one. I don't even know
how many years it is until there's this again, but
I have to tell you this was amazing. And in fact,

(00:21):
my producer, who's geeking out over this deer has just
said it's going to be in in twenty sixty one,
the next time we're going to have a chance to
see what I just got to see.

Speaker 2 (00:29):
Yesterday.

Speaker 1 (00:31):
I had the just amazing experience of traveling to Kurrville, Texas. Now, Curveville,
Texas is the same spot that NASA went to basically
broadcast and record this eclipse. Why because it was going
to be the total darkness and the longest period of
darkness anywhere in the United States of America. Now I

(00:54):
got invited to come to Curveville to experience this, and
I just have to tell you it was mind blowing
to be middle of the afternoon, lunchtime with my kids,
my family and get to watch this with their cousins
and all of a sudden, I mean, you're now let
me explain.

Speaker 2 (01:11):
This to you, just because it was so cool.

Speaker 1 (01:14):
Kerrville is like an hour and twenty minutes outside San Antonio.
When I say it's total darkness at night, it is
you can't see a foot in front of you when
you walk away from the house. It is there's zero
ambient lighting from any city. There is nothing there. There's
no radio towers you can see, or blinking lights on anything.

(01:35):
It is total wilderness style darkness. It is incredible. It
is amazing place by the way, if there's a full
moon or to see the stars, but to be there
in the middle of the day with no one else
around on a ranch and get to watch this was
just truly phenomenal. It also, and I just say, one

(01:57):
of the coolest things about this is is is getting
to watch your kids see it and they'll remember it,
and you know, it's a core memory and they're going
to see it and remember it.

Speaker 2 (02:06):
For the rest of their lives.

Speaker 1 (02:09):
And that for me as a dad, getting to watch
them be so excited getting there a few days early,
getting in the excitement, the anticipation, and you can explain
it to them.

Speaker 2 (02:18):
My kid are younger.

Speaker 1 (02:19):
I've got twins or five and a seven year old,
and you can talk to them about what they're going
to see, but until they experience it in the middle
of the afternoon, there was nothing that I could say
or my wife could say to them that was going
to give them, I think, preparation for the moment that
was about to happen. And it was this moment of like,

(02:40):
are we okay? Is everything okay? Yes, everything is okay.
Oh my gosh, what's happening? And it also just reminded
me going back and I can't imagine. We know a
lot more now, right. We have technology, we have the internet,
we can we know when these things are going to happen.

Speaker 2 (02:56):
There's fore warning.

Speaker 1 (02:57):
But I if you ever watched eighteen eighty three on
TV or any older movies about America and the Trail
of Tears, or traveling or just living out on a
prairie or in Kerville, where I mean we find I mean,
for goodness sakes, I'm not exaggerated.

Speaker 2 (03:17):
I say this.

Speaker 1 (03:17):
We go arrowhead hunting when we're in Currville, So this
is like total weird wilderness. And the thought I kept
having when I was watching this was Can you imagine
how much you would be freaking out if this happened
when you didn't know it was going to happen, Like

(03:38):
can you imagine working on the farm or traveling by
horse and buggy or i should say covered canopy wagon
and all of a sudden, or even you're in a
big city like in New York City back in the
early days when this happened, or wherever it would be
in the country where the path was and all of

(03:59):
a sudden, to just anywhere in the world where this
has happened before, without there being warning, without you knowing
this was a thing, without you knowing this a possibility,
you would think the world was ending. You would think
it was like the end of the world for those minutes,
and then think about, Okay, we didn't just die. Is
it gonna happen again tomorrow? And is it gonna happen

(04:21):
for longer? Or let's take it a step further. Is
this gonna happen and and and it will We won't
have daylight for the majority of the time. I mean,
your mind would be racing, wondering what just happened. And
then I'm not sure if it makes it better or worse,
and it would only happen once in your lifetime, probably right,

(04:42):
because you would be sitting there, especially with life expectancy
back then, it would be one time in your life.
And I'm wondering if you'd be like, you know, every
day for the next six weeks, six months, year, two
years ago.

Speaker 2 (04:53):
Man, I wonder if that's gonna happen again. I wonder
if that's gonna happen again. What was it? What just happened?
How did that happen?

Speaker 1 (04:59):
And just the thought process of that was when I
was watching this clip was truly I think, mind blowing
because you're prepared and it still blows your mind, rocks
your world, however you want to describe it. Watching kids
see it who can't get their head around it yet
was even more of a magical moment. But going back

(05:22):
one hundred and fifty years, two hundred years, five hundred years,
whatever you want number of years back and having this
happen while you're in the middle of a normal day,
I cannot imagine you would be probably thinking, all right, well,
I'm going to heaven.

Speaker 2 (05:37):
This is it.

Speaker 1 (05:38):
This is the end of the world, and it's all
ending right now in the middle of the afternoon and
everything's gone to you know what, and I'm done like that,
There's a part of me that things that had to
be was like I was talking to die as my
producer about this, and where he was it wasn't totally total,
you know, full eclipse, like where I was in Curvily.

Speaker 2 (06:00):
It was in Arkansas.

Speaker 1 (06:01):
But even then, I'm like, dude, can you imagine can
you imagine one hundred years ago, one hundred and fifty
two hundre years ago, if that happened in a normal
day what you would have been thinking? And he said
the same thing. Couldn't imagine it. So I just want
to give you that perspective. It also just reminded me
how amazing it is that we have and if you
listen to show you know, I am a believer. I

(06:22):
believe in God, and there was something very spiritual about
this moment as well, because it's like, what an awesome
God to be able to do things like this and
you have these days are normal, normal, But to me
it's just like a reminder but yeah, hey, guess what,
I'm still in charge and can do amazing things like this.

(06:45):
That was my takeaway from it, and That's what I
also told my kids as well. I was like, this
is the magic, and I hate using the word magic
because somebody's going to criticize me for that, so let
me rephrase it. This is the in my opinion, I think,
the glory of God's creation and how incredible it is

(07:08):
what he did to create this world, and it's just
a glimpse of what he can do as a creator.
And I love that aspect of this. So I hope
you got to be a part of it. I hope
you got to see it, and it was truly amazing.
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AMO in your account today. Now let's get into some
of the big news that day, and it's going to
deal with the economy. There is some problems with our

(09:08):
economy right now. Everybody knows that the problem now is
in Swing state voters. There is even a bigger problem.
Now we're being told for Joe Biden, take a listen
to this.

Speaker 3 (09:21):
The poll also finds negative perceptions about the economy do
remain a problem for the incumbent. Sixty three percent of
Swing state voters say the US economy is in not
so good or poor condition, while it's just thirty six
percent say it's an excellent or good condition.

Speaker 1 (09:38):
You listen to that number. Sixty three percent of Swing
state voters say that the economy is not so good
and or poor, only thirty six percent described as excellent
or good. And we know who those people are. Those
are hardcore liberal Democrats who refuse to admit that the
economy is hurting right now, and so therefore what they're

(10:01):
saying is I'm sticking with my guy. That thirty six
percent is almost exactly the correlation between those that give
a good approval rating of Joe Biden, which means the
president is upside down on this now, Ralph Norman went
on Fox News and said this about the economy right now,
as Joe Biden has a new tax plan and he

(10:22):
says it will have tremendous impact on the economy, saying
he's deliberately derailing our economy with this new Biden budget
that they're also saying will kill eight hundred and seventy
seven thousand new jobs. The Tax Foundation warning this would
have catastrophic consequences for our economy.

Speaker 2 (10:43):
Listen, kind to assess.

Speaker 4 (10:45):
The president's tax plans.

Speaker 2 (10:47):
He's telling us what another four years would look like.
What's the impact, Well, it's.

Speaker 5 (10:52):
Going to be a tremendous impact, Marioll at every sectors
of the economy. You know, in South Carolina, we are
a growth state. We have businesses movement here. But what
he's doing is is pretty much derailing this economy. And
he's done it the three and a half years has
been in office. You know, in capital gains of twenty
eight percent, the regulations that he's putting on businesses. We

(11:13):
can't take it anymore. And so this is a real
Mike Johnson is going to have a big decision to
make in the next five to six months. Is he
going to let the Democrats continue this, but we're going
to stand up and fight. And I hope we're going
to fight.

Speaker 1 (11:26):
Well, that's I hope we're going to fight, he says there,
and he's right about that. Now, let's talk about this
budget for a second, so that you understand this budget.
This budget that the President has put forward is a
seven point two trillion dollar budget. Seven point two trillion

(11:49):
dollar budget. It is a budget that will break this country.
The Tax Foundation said Biden's budget cuts wages by one
point six percent as well. That's another one of their concerns.
And they also said this about the budget, saying, not
only does it do that, but they said Biden's budget,
on top of that one point six percent loss, will

(12:11):
also have this.

Speaker 2 (12:13):
Catastrophic effect on our economy.

Speaker 1 (12:15):
And that is the fact that with this budget, they
believe that the majority of Americans will actually be losing
a massive amount of their income to new at taxes.
In fact, they say it will reduce the economic output
by two point two percent. And that's exactly why you
heard that warning from the House Budget Committee Congressman Ralph

(12:39):
Norman from South Carolina. He's telling you what this president
is going to do and what four more years looks like.
So if you think things are bad now, right, we
go back to the stat that I just gave you
a moment ago. Sixty three percent of voters in swing
states now say that the economy is either in poor
shape or not so good of shape.

Speaker 2 (12:59):
That is significant, kitt.

Speaker 1 (13:01):
And then you have a congressman coming out saying, look,
I'm on the budget committee, this is what the President's
budget is. This will be the biggest increase we've ever
seen in taxes in this country. It's going to hurt
the American worker like you've never seen before. Now, look
the President of United States of America, he keeps coming
out and lying to you. This is what he had
to say this last week about the economy, trying to

(13:23):
Jedi mind trick you that everything's actually fine when it's
a disaster. You know.

Speaker 2 (13:28):
But mister President, I'm feeling I'm feeling. You know, my
buck isn't going as far.

Speaker 6 (13:32):
What do you say to those folks about the economy
and what's going on. Well, I say, we have the
best economy in the world. We've got to make it better.
We really do have the best economy in the world.
Jobs are up, more than they've ever been. We're in
a situation where the lowest unemployment rate in fifty years
is maintained.

Speaker 2 (13:48):
We have people who just but people who look I.

Speaker 6 (13:51):
Think we're going to find out that what happened is
a consequence of the crisis we had on health is
have a lasting effect to.

Speaker 2 (14:00):
Get people to move in. And we're ready.

Speaker 6 (14:03):
I mean, I think the country's ready to come together
in a way that I mean not necessarily.

Speaker 2 (14:08):
I'm truly optimistic. Now.

Speaker 1 (14:12):
Our rokers giving easy questions the president. That's what the
Today's show does, right, They coddle him and they caddle
him because that's what they do. But Biden, you could
hear there, his brain just shut down and went to
coronavirus during this rambling answer defending the economy, saying we

(14:33):
have the best economy in the world.

Speaker 2 (14:34):
That's a lie, we do not.

Speaker 1 (14:36):
And he's sitting there and then he goes into coronavirus
and everybody's like, what are you talking about? Now, that's
the guy who's in charge of this country right now.
In theory, I think the people behind him at the
White House are actually running the country. But they can
convince him, I think of anything so if they say, hey,
we need a seven point two trillion dollar budget, he
says okay, because he doesn't know what's actually happening. There

(14:57):
is a lot going on with our economy right now,
and it's not just financially. It's also the strain that
is being put on our economy when it comes to
legal immigrants coming across the southern border, and it is
making the prices of not just goods and services skyrocket,
but mostly where people are feeling it the most is
in home prices.

Speaker 2 (15:18):
Now.

Speaker 1 (15:18):
A couple of days ago I talked about this warning
with you that Americans now need more annual salary than
at any other time in the history of this nation
to a ford to afford a medium price home.

Speaker 2 (15:35):
How much is it up? A staggering amount?

Speaker 1 (15:39):
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(16:01):
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Usa dot Comtom Benferguson sent you. All right, let's get
back to what I was talking about a second ago
with home prices and how bad it is in this country.
Now this came out a couple of days ago. Did
Americans now need an annual salary of more than one

(17:50):
hundred and ten thousand dollars to afford a median price home? Now,
it's not just it's one hundred and ten. I want
you to understand what it was back in twenty twenty.
So this is four years ago. It was just seventy
five thousand. So you're gonna have to make basically forty
thousand dollars more to afford the same home that you

(18:11):
could afford in twenty twenty when Donald Trump was leaving office. Now,
to put into even more perspective, Jerry Willis Fox Business,
dear friend of mine, gave the report just to give
you even more perspective. Listen carefully, because then I have
more information about what this is doing to younger home
buyers listen, The.

Speaker 4 (18:30):
Average home buyer needs to make over one hundred and
ten thousand dollars to afford the average home. A new
bank Rate study showing that the required salary to make
that purchase has jumped forty six percent in just four years.

Speaker 1 (18:43):
Now, let me just hit pause there and ask you
this question. How many of you listening have had your
salary increase by forty six percent over the last four years?
Forty six percent. Now, I know people have gotten raises, Okay,
I saw a lot of people get raises. I gave
raises over the last four years, especially when you're trying
to get people to work during COVID and things changed.

(19:05):
But I don't know anybody that got a forty per
six percent raise on average. Now, there's some that did,
right like, I'm sure there's some of the other listening
right now that you've got a promotion or you went
to work for yourself and things are going well right
now and you're making forty six percent more than you
were in twenty twenty. But I'm asking for a whole
of the country. How many average workers that work nine

(19:26):
to five jobs, that don't own their own business, that
are working for someone else got a forty six percent
raise in the last four years. That doesn't happen for
the average American. It can happen for maybe one percent,
two percent, three percent. I don't know what the number is,
but it's not the majority of Americans. And you would
need ninety percent of Americans to average a forty six

(19:49):
percent increase in their salary over the last four years.
Now here's the other part that you need to understand.
If you look at the average salary to ford a
medium home in this country, back in twenty twenty, it
was seventy five, nine hundred and thirty nine dollars. That's
what you need to make a year to be a homeowner,
and a median priced home in January of this year,
you need one hundred and ten thousand, eight hundred and

(20:11):
seventy one dollars to afford the same home. Now, let's
look at home prices. Okay, so not only do you
need to make forty six percent more to move into
that house, but the average home price is up now
forty two percent. So what is a median This is
middle of the road home. This is kind of home
ownership for you and a family, maybe one kid, possibly

(20:32):
two all right, like is your is you're growing? This
is the middle of the road medium priced home. Do
you know what the number is now in this country?
It will now cost you over four hundred thousand dollars
to own that home. Now that used to be a
dream home in the past, not anymore. That's medium. So
so it costs now more than ever just to get

(20:52):
an average house. And it cost you a salary that
had to got forty six percent since twenty twenty to
get that average house. Keep listening to what Jerry Willis says.

Speaker 4 (21:02):
Home buyers only needed to make seventy six thousand back
in twenty twenty, and the issue widespread. You now need
a six figure salary to buy the average home in
twenty three states, including the District of Columbia. Four years ago,
that number was just six mortgage rates.

Speaker 2 (21:19):
Of course, better thay, it's just stop there and dissect that.

Speaker 1 (21:22):
In January of twenty twenty, there were only six states
in America where you need a six figure salary meaning
one hundred thousand and one dollars, okay, to afford a
medium home. So the majority of America, Okay, look at
the map. Only six states did you have to make
one hundred thousand and one dollars or more to afford

(21:43):
a medium home price. That number has now skyrocketed from
just six states to twenty three states in four years.
That is catastrophic to our economy because what that means
is is people are having to pour more money than
ever before into the dream of homeownership, and that means
they have less money for other things like goods and

(22:03):
services and their kids in private school or whatever it
may be, a car, as all the other prices of
goods and services have also skyrocketed.

Speaker 2 (22:12):
That's not all.

Speaker 4 (22:13):
Mortgage rates, of course, have played a small role in
the bump, but home prices have buy and large kept
pace with a needed salary to buy them. They average
home up forty two percent, sitting at four hundred and
twelve thousand dollars.

Speaker 2 (22:26):
Let me just put that into perspective.

Speaker 1 (22:28):
I mentioned a moment ago that it cost you four
hundred and twelve two hundred and twenty seven dollars in
February of twenty twenty four to afford a median home.
Right now, do you know what that number was for
the same exact damn home in January of twenty twenty
two hundred ninety thousand, two hundred and sixty four dollars.

(22:48):
Two hundred and ninety thousand dollars is what it cost
you for the same home that would cost you today
to buy for four hundred and twelve thousand change. That
is a forty two percent increase. That is unsustainable. You
cannot continue to have houses go up by forty two
percent over a four year period indefinitely. And there's no
way in hell that wages can keep up with that.

(23:09):
Where you used to have to make seventy six thousand
at for that home and now you've got to make
one hundred and ten thousand plus just to get into
an average home.

Speaker 2 (23:17):
That's not all. It gets worse now.

Speaker 4 (23:20):
Even though the housing market may be pricing people out,
people shouldn't be too quick to think that renting is
the solution. Since President Biden took office, rents are up
nearly twenty one percent.

Speaker 1 (23:32):
So twenty one percent rents are up because you may
say yourself, well, Ben, I'm just going to sit on
the sidelines, right. I had a good friend they're renting
the other day. They're renting for years, and they had
a good deal on the rent. They liked the house,
they'd made it their own. They probably should have bought
the house or bought another house when interest rates were low,
but they didn't, right because the rent was a good
deal and they liked where they live and it felt

(23:52):
like home.

Speaker 2 (23:53):
They got to.

Speaker 1 (23:53):
Notice February saying hey, you got sixty days to move out,
and what they found was is that they now can't
even afford the same house that they were renting because
it costs so much money because rent rates have skyrocketed
since they signed their lease with someone who basically figured
it out. Like, that's what this really boils down to.
They figured it out. The guy who has a house

(24:15):
is going to do one of two things. Either he's
going to raise the rent a lot, which I don't
think that's what he's actually doing. I think he's saying,
I'm gonna cash out because I feel like there's a
bubble coming, Okay, Like I think that's what they're realizing,
that there's a bubble.

Speaker 2 (24:31):
I want my money.

Speaker 1 (24:33):
If you've got a house, it's two hundred thousand dollars
four years ago, and you can cash out now and
you can put four hundred plus thousand in your pocket,
you may say, let's do that and I'll get out
of the rental game for a little bit and cash
out for retirement. Just take the four hundred thousand and
invest it because interest rates are up and you're now
getting a lot more for that four hundred thousand dollars.
If you invest it in basic money markets, you don't

(24:55):
even have to take big risks. In fact, you could
take extremely low risks. And this is hour we are
in this country because of Bidenomics. You can also look
to trends when it comes to the economy, and one
trend that I want you to know about is where
we are with gold prices. Gold right now, as I'm

(25:15):
recording this is up almost two percent alone today at
two thousand, two hundred ninety seven dollars and fifty cents
an ounce. Why is gold up from I'll give example,
if you go back to the beginning of October, it
was about eighteen hundred dollars an ounce. Why to go
from eighteen hundred to two thousand, two hundred and ninety
seven hours One simple reason, because people are afraid of

(25:39):
what's happening right now in this country. They're afraid of
what's happening with our economy. They're afraid about what's happening
with all of these basic issues that I just described. Now,
here's another headline for you that I want to give you,
And this is a little bit of a contradiction of
the last headline that I had for you, but it's
one that shows you how quick things even change. And

(26:01):
I'm not saying for the better, I'm saying for the worse.
Home buyers.

Speaker 2 (26:04):
Is the headline from Yahoo Finance. Home buyers need to.

Speaker 1 (26:08):
Earn eighty percent more than they did in twenty twenty
to afford a home in today's market. So they're not
referring to the medium home price anymore. They're saying just overall.
Yahoo Finance and Wealth putting this out, saying, as US
housing prices rise, is home ownership still even achievable? That

(26:30):
is Yahoo Finance. Listen to what they said on their
online show.

Speaker 7 (26:34):
Well, for many Americans, home ownership is seeming more and
more out of reach. According to new analysis from Zillo,
home prices have jumped forty two percent since twenty twenty,
but the average person needs to earn eighty percent more
than they did at that time in order to comfortably
afford a home in today's market. So why are homes

(26:55):
becoming less and less affordable. That's the big question here
with the latest We've got our very own Molly moorehead Molly,
what's going on here? And why is it so hard
to be able to afford a home right now?

Speaker 1 (27:05):
Hey, Brad.

Speaker 8 (27:06):
So, in addition to that increase in home prices, which
forty two percent is not nothing, inflation has been on
the rise since the pandemic, and interest rates have followed,
and so that means the cost of financing a home
is so much more than it was four years ago.
If you look at the average rate on a thirty
year loan, in March of twenty twenty, it was three

(27:27):
and a half percent. Today it's around six point eight,
six point nine, And so it's this double whammie of
higher home prices and higher financing costs.

Speaker 7 (27:38):
So what advice do you have for prospective home buyers
out there right now?

Speaker 8 (27:43):
Yeah, well it's not easy. This is a tough market.
But a couple of things you can do. Our number
one watch the Fed. A lot of economists market watchers
think that we still have three interest rate cuts potentially
coming this year from the Federal Reserve and that will
help the rate. You qualify for on if you apply

(28:04):
for mortgage, and so if you're in a position where
you can time your home purchase a little bit, you
don't have to buy right now, then watch what happens
more broadly with interest rates, because that can help you.
Second would be negotiate agent commissions. This was not really
in play until very recently with this settlement with the
Realtors Association. There has long time been a kind of

(28:27):
de facto six percent commission, but now all of that
is negotiable. So go into your home purchase ready to
negotiate your what your agent's going to get paid.

Speaker 1 (28:39):
So this is their advice. Yes, home pricing is out
of control. You may hope, and you can hope that
maybe prices come down. Okay, that's a possibility, is that
home prices might might come down.

Speaker 2 (28:54):
Okay, just might come down.

Speaker 1 (28:57):
They're probably not, but they might, and you shouldn't negotiate
with your real term what their commission is, and that
might help you. Now you notice at the beginning of
this they said, not only our home price up forty
two percent since twenty twenty, They say that's because both
rates and borrowing costs of skyrocket. Notice they don't blame
the Biden administration's policies for this. They just act like, Oh,

(29:19):
this is just some random thing that's happening, And I
get that this is yahoo. They're liberal, all right. But
what they did tell you the truth on was and
they didn't go with medium price homes.

Speaker 2 (29:28):
They just were giving you the overall average.

Speaker 1 (29:30):
You need to earn eighty percent more to comfortably afford
a home in today's market. Now, why they say comfortably
afford If you want to be maxed out in your budget,
it may be less.

Speaker 2 (29:42):
But if you want to.

Speaker 1 (29:43):
Enjoy and retire and save for retirement and have a
balanced budget in your home, you literally need to earn
eighty percent more to comfortably afford a home in this
market than you did in twenty twenty. That is what
this election is going to end up being about, my opinion.
When media and home income have only risen twenty three

(30:03):
percent over the last four years, leaving many people without
the running for home ownership, they're saying, hey, most Americans
aren't even a candidate now for home ownership, and the
ones that are in the homes they're in right now,
they're not leaving because the interest rates are so low.
They couldn't afford to move even into maybe the same
house they have right now if they went and bought

(30:26):
the same exact home across the street because prices are
out of control because of inflation and interest rates. In
twenty twenty, a household earning fifty nine thousand dollars a
year could afford a typical home price at about two
hundred and forty grand. At the time, the income level
was less than the US medium income of sixty six thousand,

(30:49):
meaning more than half of American households had sufficient cash
flow to not only purchase a home, but also to
plan for retirement and save money. In other words, they
were able to purch a home without overextending their budgets
and being locked in a miserable cycle of hell every
month coming up short or having to cut things. Today,

(31:10):
those same people, just four years later that are shopping
for a home, they need their income to go from
fifty nine thousand a year to one hundred and six
thousand dollars to afford the same exact home. Because the
home price has gone, as I mentioned earlier, from two
hundred and forty thousand to three hundred and forty two thousand.

(31:31):
That means You've got to earn forty seven thousand dollars
more than you needed to earn in twenty twenty to
afford the same exact house, and that's well above today's
average income of eighty one thousand dollars. Now, Zillo is
more realistic than the other numbers I was giving you earlier.

(31:52):
Zillo's analysis is just saying, hey, this is the truth.
This is what's going to happen. And a point of
concern is also this that the bank's saying is look barely.
A handful of major metro areas evaluated were affordable for
the majority of the people living there at the median income.
The real estate firm defines affordability as spending no more

(32:14):
than thirty percent of your income after offering a ten
percent down payment, which, by the way, most people now
don't have the ten percent down payment because that money
has disappeared because the cost of goods and services and inflation. Now.
A senior analyst at Zillo said it this way, incomes
needed to purchase a home are just much much higher

(32:37):
than the typical household income. The increase in cost is
pricing out many families that will never get on the
housing ladder and will never be able to start even
in their starter home because of what we just described.
And the fact is today's typical buyers would be facing
a monthly mortgage payment that is ninety six percent higher

(33:00):
compaired to twenty twenty levels, so virtually double what you
were going to have to spend back then for the
same home. So there is the government numbers and I
gave you those earlier, and then there's the reality. And
Zillo is saying, you need twice as much money now
for a payment every month than you did in twenty
twenty in four years. So that's twenty five percent increase
a year. That's an average payment, by the way of

(33:23):
two hundred dollars a month with a ten percent down
payment just to get into what you would describe as
basically a starter home.

Speaker 8 (33:30):
Now.

Speaker 1 (33:30):
The main difference they say is yes, mortgage rates ended
January of twenty twenty at three and a half percent,
a little lower if you have good credit. So far
this year the rates have hovered between six and a
half to above seven, depending on your credit, but no
less than six and a half. And this uptick has
made not only the prices of goods and services go up,

(33:51):
but if it is put, would be buyers in a
spot where now they're basically saying, I can't afford it,
so now I'm.

Speaker 2 (33:57):
Gonna rent, all right.

Speaker 1 (33:58):
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