Jake Novak - Commentator / Host Joins Houston's Morning News

Episode Transcript

Speaker 1 (00:01):
Yeah, it's gonna be a long way to get the
economy I think exactly where we want it to be,
because it got destroyed so much during the Biden administration.
Seven twenty three, Our time here in Houston's morning news
host and commentator Jake Novak join us. There's so many
things that are up in the air right now, Jake,
that the President has on his list of things he
wants to do. Of course, there's the tariffs. Have to

(00:23):
see how that works out. There's getting ready on tax
getting rid of taxes on tips and Social Security. You
know what, if you're him and you're trying, I guess
the inflation monster is probably the biggest thing right to tackle.

Speaker 2 (00:36):
Yeah, and it's not just inflation at the grocery store
and at the ball or online. It's the inflation in
housing prices that came from the boost and mortgage rates.
I mean that, when you think about it, that's the
biggest sticker shock. And if we want to see a
real recovery economically in this country, Jimmy, we've got to
get that mortgage rate, the average thirty year mortgage rate

(00:58):
below six percent. Don't care if it's five point nine
nine nine percent. The psychological freedom in a lot of
people's minds, both as buyers and sellers. When that happens
will be big. And I think that you know, that's
not going to happen from the said. The said can't
make that happen. It's going to happen from some of
the president's policies that he's been talking about, like allowing

(01:18):
for homes to be built on federal land. You know,
I know you're in Houston, but you know Austin had
a significant drop in some of the housing prices.

Speaker 1 (01:25):
How do they do that?

Speaker 2 (01:26):
They increase supply. Remember in fifth grade, you learned about
supply and demand. You got to increase supply, drop the regulations,
make more good housing available, and then you're going to
see not only the prices go down, but also the
mortgage rates go down because they'll be able to make
up stuff and volume. So to me, that is a lynchpin.
A lot of people are not talking about enough. We
have to get those mortgage rates down.

Speaker 1 (01:46):
Yeah, one thing that's probably going to have to improve
as well. And we just got these numbers. US consumer
confidence felt for the fourth straight Bunchet's as a twelve
year low. For whatever reason, the confidence Board reports the
decline in Consumer Confidence Index to ninety two nine, down
seven point two points from the previous amount. Now these
are not crazy low numbers, but it shows that people,

(02:07):
you know, people are pulling back because they're just worried
about the affordability of life in general.

Speaker 2 (02:14):
Well, and here's the good news. The consumer confidence reports
are what we call soft data and word they're asking
how people feel. The harder data shows that the economy
is still strong, you know what, People are still actually
are still spending a little bit.

Speaker 1 (02:28):
I do agree with you.

Speaker 2 (02:28):
I think that there's definitely some.

Speaker 1 (02:30):
Pullback going on.

Speaker 2 (02:31):
But thankfully, right now, the consumer confidence what they're telling
the polsters and the analysts about how they're feeling, thankfully,
is not yet completely showing up at the cash register
and on the click button on when you're buying, when
you're shopping online. Now that could change on a dime,
don't get me wrong, But I think we should be
looking at the harder data. And I think that's what
kind of Wall Street looked at yesterday as well, Like

(02:53):
that's why we didn't have a big sell off yesterday.
We ended up with a real just even flat day.
And we're starting out flat again today. I think that
the markets are waiting for something else because they feel
like that's soft data and that people sometimes say that
things are worse off than they really are. But we
have to keep an eye on that because that means
they're worried them they're going to look for more bargains,
but whether they're going to actually stop shopping altogether. I

(03:14):
don't think we're there yet.

Speaker 1 (03:15):
Jimmy, Yeah, that remains to be seen. Jake, always a pleasure.
Thank you. Commentator and host Jake Novak at seven twenty
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