Jason Hartman

Or investment properties. Who own any property has a mortgage adder below 3%. 65% of the country has a mortgage adder below 4%. It's insane.

Or investment properties. Who own any property has a mortgage adder below 3%. 65% of the country has a mortgage adder below 4%. It's insane.

So you know what they realized? they realize their mortgage is not a liability. It's an asset.

So you know what they realized? they realize their mortgage is not a liability. It's an asset.

Okay. Mostly the traditional idea is, okay, the house is the asset and the mortgage is the liability. If you had a balance sheet, that's the way you draw that. That's right. Okay. But a cheap mortgage is a mega huge asset. And now we have proof because we have what's called the lock-in effect.

Okay. Mostly the traditional idea is, okay, the house is the asset and the mortgage is the liability. If you had a balance sheet, that's the way you draw that. That's right. Okay. But a cheap mortgage is a mega huge asset. And now we have proof because we have what's called the lock-in effect.

Where people will not relinquish their houses. That's why the inventory is so low. Nobody wants to sell because they have these cheap mortgages.

Where people will not relinquish their houses. That's why the inventory is so low. Nobody wants to sell because they have these cheap mortgages.

You're never selling that house.

You're never selling that house.

We can't, we can't duplicate that cheap mortgage.

We can't, we can't duplicate that cheap mortgage.

Right. Actually, that's a really good point you made too. The lock-in effect has created a lot more real estate investors because they'll keep their old house, turn it into a rental because they've got such a good asset, that cheap mortgage. Okay. And this is why we're unlikely to have any major increase in housing inventory anytime soon. And I know we keep jumping off the topic, okay?

Right. Actually, that's a really good point you made too. The lock-in effect has created a lot more real estate investors because they'll keep their old house, turn it into a rental because they've got such a good asset, that cheap mortgage. Okay. And this is why we're unlikely to have any major increase in housing inventory anytime soon. And I know we keep jumping off the topic, okay?

Because this lock-in effect is so serious. The only way you cure the lock-in effect is with much lower interest rates. That's right. And the way you get much lower interest rates is a crisis. Without a crisis... we're not going to see those rates again. That's right.

Because this lock-in effect is so serious. The only way you cure the lock-in effect is with much lower interest rates. That's right. And the way you get much lower interest rates is a crisis. Without a crisis... we're not going to see those rates again. That's right.

You're right.

You're right.

I would say five and a half. And five and a half, think of the rationale between all these millions of homeowners. If their mortgage, if they can get a new mortgage at five and a half and they're currently paying maybe four and a half, they can rationalize that decision. And they'll put their house on the market. When that delta gets smaller, they'll sell.

I would say five and a half. And five and a half, think of the rationale between all these millions of homeowners. If their mortgage, if they can get a new mortgage at five and a half and they're currently paying maybe four and a half, they can rationalize that decision. And they'll put their house on the market. When that delta gets smaller, they'll sell.