The Jon Sanchez Show

11/14-Housing market solutions

We are all aware of the challenges facing the housing market right now. The main issues are rising mortgage rates, lack of inventory and regulatory burden in the world of lending. The question we must ask ourselves is this…..Do we think the new Trump administration can do something about it? We’ll discuss some possible solutions this afternoon

Duration:: 34m
Broadcast on:: 15 Nov 2024
Audio Format:: other

But there's only one feeling like knowing your banker personally, like growing up with a bank you can count on, like being sure what you've earned is safe, secure, and local. There's only one feeling like knowing you're supporting your community. You deserve more from a bank, you deserve an institution that stood strong for generations. Bank of Colorado, there's only one member FDIC. Good Thursday afternoon to you, welcome to the John Sanchez Show on New Stock 780K, which it's a pleasure to be with you and a pleasure to be with my co-host. First we will start with Mr. Mortgage extraordinaire, the man who of course, living, breathing, dying, smiling, sometimes sad, based upon our dear friends at the Fed. Don't wipe my lard, synergy when lending. How are you my friend? I'm doing good, John, how are you today? Glad the day is over, man. That's all I can say. Glad the day is over. One more to go. It's been a long, long week to say the very least, but other than that, we're smiling and we're happy and grateful to be here. Filling in for Choreage. It's interesting times for us. Yes it is, yes it is. Filling in for Mr. Choreage is Mr. Aaron Clark. How are you, my friend? It's great to have you back as always. Yeah, thanks for having me. I'm doing well. Good, good. There you go, there you go, easy to wake up in this weather, by all means. All right Aaron, well it's great to have you as I said and boy we have a lot of great things to be chatting about. So our topic this afternoon is very simple, housing market solutions. So throughout the week, I've tried to focus each and every show, whether it's the real estate show on Tuesdays and Thursdays or Jason and I Monday, Wednesdays and Fridays, trying to again peer into the crystal ball in regards to various aspects of the economy, the stock market, et cetera, under the Trump administration soon to be. Well one area that we haven't really got into, but we will this evening and that is the real estate market, housing market solutions. So here's the situation folks, we all know this. Housing market's under a number of challenges, right? Housing market is facing rising mortgage rates. It's facing lack of inventory, it's facing as Dwight always says, the regulatory burden in the world of lending. So the question I want to pose to all of you that we must ask ourselves is this. Do we think the new Trump administration can do something about the housing challenges that everybody is facing? We think the answer is yes and we are going to lay out some possible solutions. Guys, we, you know, at this point, we've heard some possible, you know, issues in regards to, you know, Trump tax policy and different parts of the economy that he wants to start tackling from day one. I don't know about you guys, so I'm going to throw it over to you, but I have not heard any mention whatsoever in regards since the campaign trail, in regards to healing the housing market, coming up with the solutions as we're going to do tonight. Aaron, very quickly, let's start with you, Dwight, then you, then we're going to get to the stock market then to, to you guys all the way. So Aaron, how about you? Have you heard anything out of the Trump administration yet? Nothing specific. We've heard a little bit of talk about creating some potential buying help for rural areas. So there's some winners of that. Okay. But then also we have this very specifics of, you know, I mean, everything's connected via dominoes, right? Yes. So as he goes through and makes certain changes that help put more money in people's pocket. So let's take the simplest one that we've all heard of, you know, if you can get approval to have, you know, people where they don't get taxed on overtime or tips, you're putting more money in people's pockets, which is giving them more buying power, which is giving more confidence, which is giving them more of an ability to buy. So I'm, you know, everything's intrinsically connected. Right. That's a great point. That's true. We haven't heard anything about the, the, the tips and even the first responders, not paying any taxes since the campaign trail. Good job, Aaron. Good job there. How about you, Dwight? In your world of mortgage lending. Have you heard anything out of the Trump administration so far? You know, to Aaron's point, nothing, nothing specific. But John, I think, you know, we kind of touched on on Tuesday. The biggest single reason, you know, that homeownership is out of reach for many is because there doesn't seem to be enough homes to buy, right? Right. So I think there's going to be a hard look at maybe additional regulations or rules or something around hedge, and whether I agree or not agree, they did suck out a million plus, you know, homes out of the market. And so I think, I think, but I, you know, like Corey was saying on Tuesday, you've got a businessman in there that has a mind outside of Washington that may come up with some ideas. And you know, you start looking at his cabinet picks. I mean, these are people, most of them are outsiders. So you're looking at something that's not what we thought before. So I think, I think Aaron's right too, that they're going to start looking at ways to move people out of the, you know, metropolitan areas. I do like first responder type of loans and things like that, that they can start creating. But it's going to take everybody all hands on deck to kind of figure this thing out, you know, because there's just not one simple answer to this. Well, you know, as we all know, his former life, of course, being a real estate developer and obviously still heavily involved in real estate, yeah, we're, I think we're all on the same page that we want him to think outside the box. And you know, this is the first comment that I have made in regards to Elon Musk, but you know, he's being brought in, of course, to, you know, chop some heads and throw out some fat and so on and so forth as the saying goes, I, you know, I'll be really interested to see, again, let's, to your point, Dwight, thinking outside the box, thinking outside the norm of Pennsylvania Avenue, what other ideas are there and is all of you are going to find out? There are tons of ideas. I mean, we're, we're just three guys coming up with some of our own ideas that there's a lot of people out there that have, you know, some real fancy Ivy League degrees, which I don't know if that's a good thing or bad when it comes to this, but there are a lot of people out there that should be able to come up with some ideas either in line with what we're talking about or some other things, but something needs to be done. I just hope and pray that the next four years, once he sets foot in the, in the White House, it's just not more of the same as far as the housing market is concerned because Aaron, as a real estate professional, you've been doing this a long time, like Dwight and like myself, I don't think this, I don't think the buyer has the patience or the tolerance to, to go through another four years of, you know, scrambling to, to try to find a home scrambling, trying to find, you know, a sub 7% mortgage rate, et cetera, correct? Absolutely, not in a lot of the rumors or conversations that I'm having with people over the last few years, especially with interest rate increases from inflation is my kids are never going to be able to buy a house. Boy, we all hear that. Good. That's right. Or the kids themselves saying that. Yeah. I'm never going to be able to buy a house. I hear that all the time. Exactly, so we're hoping to see some relief in that arena for the next generation. You know, we all want our kids to have the dream of homeownership, if they can. Right. Right. Absolutely. All right. Well, to that point, that may be in large part to why some of the younger demographics shifted to Trump was because of that dream being just probably not even on the radar under the way we were going and why not try something else? They're attitude. You know what I'm saying? I've got nothing to lose here. I'm already. Yeah. I've already lost the American dream. Let's see. Everybody can. And also, I mean, I'm just wondering, you never know what the, because they don't tell you they just show that some demographic shifted that way, but they don't tell you the real culprit of why they shifted, you know, inflation, the economy. But I think the younger generations, realizing exactly what Aaron's saying, hey, I just can't. I've tried and I've got to bring on 16 co borrowers to just, you know, buy a basic house. It just doesn't. It's just not working for them. You're right. You're right. No, that's a very excellent point. Dwight. You're absolutely right. Okay, guys. Excuse me. Let's, let's get down to the stock market side because I want to get this moving. It was a heck of a day today. I'll just summarize it that way. I'm going to take you back to this morning because we had an abrupt reversal in the stock market, especially mid morning and, you know, Dwight knows what I'm going to be talking about as far as Fed Chair Powell is the culprit behind this one. So I want to kind of lead into this morning. Now, if you've noticed these last couple of days, and for those of you that attended our webinar last night, that Jason and I put on as far as, you know, where we think things are going under the Trump administration, this was one of the many things, and thank you, by the way, for attending. This was one of the many things that we talked about that this market right now is on a sugar high and it can't last, right? There's a lot of enthusiasm, a lot of optimism that we all have. But look at folks, this is the stock market traders, algorithms. They don't give a damn about, you know, Trump and so on and so forth. They're out to make money hour by hour, minute by minute. So volatility, of course, has been phenomenal. And this market, as we've said, for about the last week, actually, since last Wednesday's rally, the market can pull back and I'm going to steal Jason's term just because, just because, just because of this, just because of that. And today was one of those just because us. Okay. So here's what I mean. Go to this morning. Stock update with Ross this morning, guys, Dow was up 136, NASDAQ futures were up 31, S&P's were up 12, kind of hovered around there. Now that was at 523, 530 rolls around. We get our initial claims. So listen closely to what I'm about to say and then I'll make my point. So initial claims, first-time filings for state unemployment benefit, edging up just 4,000 to about 218,000, okay, no big deal there. Continuing claims, those that continue to receive the benefit, down 11,000 filings. So 1.87 million, okay, no big deal. The takeaway there, hey, the jobs market is still strong, right? Those are very good historical numbers. Simultaneously, we had the release of PPI, the measure of inflation on the wholesale side. Yesterday, of course, PPI, remember up 2/10 of a percent month over month, today was wholesale. So this is a way to see what businesses are facing. And I like PPI, in many cases, more than CPI because if a business is facing inflationary pressures on their products, on their goods, et cetera, darn well, they're going to be passing that on to UNI as a consumer. So it's somewhat of a forward-looking indicator. Now PPI today came out and said, okay, PPI prices, wholesale level of inflation, up 2/10 of a percent month over month. Now doesn't sound all that bad, again, similar to the CPI. But what we have to do is we got to take a step back. This was October's report. We got to take a step back and go back to September. Up 2.3 percent, excuse me, up up up up, well, let me back up, up 2/10 of a month over month. I want to go to the head to the year over year. This is the point I'm trying to make. So year over year, up 2.4 percent, okay. Now here's my point. September, we were up 2.3, okay. Now, as we all have been discussing, we, you know, the Fed wants to see these interest rates and, or excuse me, they want to see the inflation rate coming down. We didn't get that, guys, up 2.4 from 2.3. Now again, it's 1/10 of a percent, not, you know, by any means a historic monthly move, but it's a move in the wrong direction. Then we strip out food and energy, we get to what's called core. Now core was up 3/10 of a percent month over month, a little bit hotter than expected, year over year, up 3.1. So my point to all this with these boring numbers is this, inflation is not subsiding, at least based upon the October data. So you go, wait a minute, we got a lot of people that are still working, that's inflationary, and now we have the CPI, or the PPI data, and yesterday CPI showing inflation is not coming down. So what did we see happen? We immediately saw the probability of a Fed interest rate cut drop from 82.5 percent in December down to 58.9. So the market's going, uh-oh, we may not be getting that quarter percent cut after all based upon this inflationary data. But then the icing on the cake happened mid-morning, and we have Mr. Powell to think about this. Um, actually it was not mid-morning, it was right at the 12 o'clock mark, so we barely missed the morning. 12 o'clock, Mr. Powell spoke, I'll tell you what he had to say, that rocked this market when we come back. Turning it on over to Kristin Snow in the right-not traffic center. Hello, my dear. Welcome back to the John Sanchez Show on his TOC 780K OHH with Aaron Clark of Agility, Dwight Mallard of Synergy 1 Lending. All right, here's how we finished up, not on the lows of the day, but, uh, we put a good dent into it. 207 decline on the Dow, 0.47 percent to 43.750, and as that could triple digit loss down, 123 or 0.64 percent, S&P lower by 36 points or 0.60 percent. Where's level? Dow is down almost, uh, 300 points, uh, best level. We were up over 200 at the open, and this is, again, this is abrupt reversal. Now, the market was trending down, uh, but boy, I'll tell you what, if you want to look at something amazing, look at a chart, uh, of the trading of the Dow today. Uh, because it all changed, right? We were kind of drifting like I said, some gain, some losses. It looked like it was kind of, you know, maybe finished with a small decline, but it all changed when 12 o'clock rolled around. Guys, I, I looked up on my screen and I see these, you know, cells or, or, uh, you know, big red bars on my, on my trading system, and all of a sudden I say this, you know, one after the other, sell, sell, sell, sell, sell, sell, sell on the Dow side of things, NASDAQ and everything was the same. Now I look out, the, here comes the flashing headlines of what just happened. So once again, PPI coming in, forget about all the numbers that I screwed up and kind of stumbled with you. PPI was hotter than I expected, the wholesale side, and then we get this, this comment from Federal Reserve Chirp House. So he's doing a speech today, okay, given a speech and he rocked the markets, rocked the world by saying the following, the economy is not sending any signals that we need to be in a hurry to lower rates. The strength we are currently seeing in the economy gives us the ability to approach our decision carefully. Let me read that one more time. The economy is not sending any signals that we need to be in a hurry to lower rates. Dwight, your much better. Is this not what we just said, said it Tuesday, Jason and I got into a debate, a debate about this yesterday, said rates are going up and sure enough, here comes the Chairman saying this. If you're a bond trader, what's the first thing you do when you hear that comment from the Fed Chair? What's your first thought? Hit sell. Hit the sell button. That's right. Hit the sell button. Yeah. Well, you know, John, I got a few techs after the show and, you know, thinking of how we explained it, even though it's not comfortable to hear it, this is potentially a reality and more and more each day it feels, you know, more like that. And I had a conversation the other day yesterday with somebody, you know, very well attached to the market as well. And they too believe that the 10 year has a greater chance to go to five than four, just as you said. And so, I mean, it's going to be a bumpy ride till we can get this thing figured out. I mean, it's going to be, you know, a bumpier ride than I think what I was hoping for. But I knew that the election wasn't going to be the end all be all but, yeah, no, not at all. Yeah. He went on to say the following inflation is running much closer to our two percent longer run goal, but it is not there yet. We are committed to finishing the job. Powell said, noting that there could be quote on a sometimes bumpy path. Ooh, there you go. Dwight Chairman said the same thing you just said on a bumpy path. So this is what caused the sell off mid stream today, 12 o'clock, well, three quarters of the way through the day. This is what caused that. This is what's causing a bit of, we'll call it a little bit of nervousness that's going on in the, in the after our recession right now, checking the futures again, still very early, of course, but Dow futures down 46, NASDAQ's are down 67, S&P futures are down 12. Folks, this comment today, I cannot emphasize enough to you. This could be the turning point that just because excuse that we were talking about for traders, both on the bond side of things as well as on the equity side of things, they go, you know what? I'm stepping aside. I've got some good gains for the year. I'm stepping aside, closing the books, and I'm just going to write this thing out, meaning they sell, go to cash to protect things. I've been, you know, as I've said on the show every single night, I've been sensing something strange is going on out there that this inflation, people are not giving it enough credence at this point. I don't see, Aaron, how this inflation can come down with all the stimulative measures and programs that Trump has already begun to talk about, not to mention what we still don't even know it's going to happen, but also so many people still at work, stimulated economy, excited, regenerated about the Trump administration coming in, all of these factors coming together to say, what's going to cause inflation to come down? Again, it's spitting in the wind when the Fed gives us a quarter percent cut. Do I, I used your comment on our webinar last night, how you emphasized on Tuesday night, John, September 16th, Fed gives us a half a percent cut. We're up 80 basis points on the 30-year mortgage since that quote cut. So what's a quarter percent going to do in December or another quarter percent or another quarter percent? It means nothing as we all warned everybody, it's all about the bond traders and their perception of inflation. Aaron, take it away. Yeah, I mean, especially in this market right now, I think that any movement that we are seeing is typically in the place of emotions as opposed to action. So we're seeing like on the housing side where, yeah, you're getting some people that are getting confident because we have the change in the fact that we're going to have a new administration that might stimulate and do things, but people are still not confident when they start looking at the paper and running calculations and saying, well, you know, since we've been in this state for a while, we've seen rates supposedly drop, but they're not really dropping, they're holding their breath. So emotionally, there's excitement, and I think that's why we saw a lot of movement right on election night on, but now people are like, all right, the honeymoon period is over. Let's see what actually happened. Yeah, that's a great one, but it was a short lived honeymoon, right? Day after the election, and then the rest of the week was kind of choppy, and this week is still kind of following right along with that. Yeah, a lot of fiction to do. Yeah, a lot of fiction to do. That's exactly right. And you know, we, as we went through the CPI numbers yesterday, you know, I went back to June and you know, when we had the month of June, where it was down month over month, the rest of the month, on average, up about two tenths of a percent. So you just keep adding that up to tens last month, up to tens this month. So on so forth and before you know it, you're up, you know, 1% still historically high. But I, I, do I, real quickly before we go to break, you were very, very critical of the Fed. You went on one of your soapboxes that I absolutely love, angry many times over the last few years, you know, before we started getting rate cuts and things, that the Fed was, was behind the curve that, you know, they kind of fed us a line of, you know, what's, you know, saying inflation was transitory, et cetera. Do you still have that same doubt in your mind? Because I'll tell you, I do. I, I think they're, I don't think that they are on the right path. I really don't. Not at this point. Quarter percent's not going to do it. They need to shock this market three quarters to a half a percent and in shock this market, bringing these rates down. Otherwise, they're just going to keep climbing. I couldn't agree more wholeheartedly. I think they missed it all the way. You know, I, and hindsight is 20, 20, but they had way more information than you and what I had, and we talked about it on this show over and over month after month at transit Tory. We're not seeing anything. All you guys just go to the grocery store. That's right. It's real. Paul doesn't go to the grocery store. Then he doesn't have no clue. Right? He has no clue. That's right. That's right. You know, so yeah, I'm still very critical and still very concerned that they still don't get it. Yep. So don't get it. That's a great term right there. All right. We come back to what I want you to hit the 30 year mortgage rates as of today when this all this movement happened, and then we'll get into our topic, which is housing market solutions by the Trump administration. What are they? We'll give you some more of our ideas. Starting over to Greg Neff. He's got news traffic and weather. Hey, Greg. Welcome back to the John Sanchez show on News Talk 780 K O H with Dwight Millard of Senator Joanne Linden, Aaron, the master Clark of agility. We finished down 207 on the Dow 123 decline on the NASDAQ and the S&P 500 giving up 36 points. Once again, just got done mentioning one of the culprits to today's weakness, Mr. Powell saying, hey, you know, let things are fine. We're not any hurry to cut rates. It's all good. And then the market went, yeah, let's show you that it's not Mr. Powell and sold things off pretty, pretty heavily. Like I said, we're down almost 300 our worst, but as I said, down 207. Okay. Real quickly, Dwight, let's go to mortgage rates. I saw they, of course, the 10 year did not really react much, which shocked the heck out of me. This market had the potential to just rally on the rates, finish down three basis points at yield of 442. Imagine we did not get much movement in the 30 year. Well, the good. Yeah. The good news, John, as we are exactly what we were on Tuesday, 7.02. Okay. Presented for 30 or fixed according to the mortgage news daily. But yeah, that didn't, you know, the mortgage backsecurities, cities down 13 basis points. So it was late in the game, John. So if it doesn't recover in the morning, you know, what that was, there you go. That's right. The bottom market was, it was essentially closed by that point. That was the goal. Yeah. Good point. So you may see a little bit of worth pricing tomorrow, but it doesn't recover. Right. Right. Amen. Okay. Good point. Last segment, Aaron, so I want to, I want to get a couple of these points in in our, you know, we're going to, we're going to play like we're in the, the housing department of the new Trump administration and Trump has come to us and said, okay, boys, but what is, what are some solutions that I can be thinking about here? Dwight, an area, of course, that has been a burning area for you for many, many years. No pun intended. The potential reduction in regulatory burden. This is something that your industry like ours, but I think yours as worse has this been dogged with, yeah, ever since 2010, John, the dog Frank bill that we've beat to death on this show, um, I, I would say it's probably somewhere in the neighborhood of three quarters of a percentage point to maybe even one and a half in cost to the, you know, to the pricing. So I mean, to your point, and we've talked about again, you guys had to convince me three or four or five years ago. It's all about rates, rates, rates, right. Um, John, I can see, so I saw one of Trump's comments earlier on in the, in the, uh, you know, before the election talking about maybe private, privatizing Fannie and Freddie again, which, you know, I don't know if that's a solution, quantitative easing is always on the board. I mean, the feds have completely gone dark, right? They don't buy. They don't, they just sell. And to your point, if we can get some, uh, regular regulatory or compliance reform, you might see that. And, and, you know, John, we talked even, I think it was two weeks ago, um, in, in spite of this rough housing crisis, Fannie and Freddie continued to raise their costs to get a mortgage by their loan level price adjusters that we've talked about. Why not take those off the table right now? Why not use it for the consumers? Why are we still, why are they making $17 billion a year? You know, I don't understand. And this is where someone like Trump could come and go, wait a minute, we're making $17 billion over here and people can't afford. That doesn't make sense to me, you know? So I'm hoping that some of these somewhere along the line, something connects with somebody. Well, you know, there's a way, I think out of the, the various items that we're going to go through, Aaron, I think this one has a lot of, a lot of legs to it simply because we know that Trump does not like regulatory issues. He's all for deregulation, no matter what area of the economy we're talking about. So don't you agree that this one has some pretty good legs to stand on, Aaron? Oh, yeah, this is probably the crux of the start of all change that could mean the easiest to implement and execute right away and have a dramatic impact across the board. Yep. You got it. All right, guys, let's go to a point number two, interest rate policy and federal reserve pressure. Now, I made a comment. What was it? I guess I remember what day it was. We went to last week, first part of this week, times a blur here, where Jerome, no, it was the last Wednesday at the Fed interest rate decision when Jerome Powell in his press conference was asked if Trump, you know, basically fires you, are you going to go and, you know, he was very adamant and like, no, you know, I'm not going to do that. So we know Trump, of course, is a huge advocate for lower interest rates. We know, at least in the past, he did not care for, for Mr. Powell very much. They but it heads quite a bit. Of course, there were some campaign rumors that basically he wanted to do away with the Fed as crazy as that sounds. So we don't know what's going to really happen in that area. But of course, the Fed says we're not politically affiliated. We operate independently and so on and so forth. But we know that in the former Trump administration, he did put and he said it publicly, he put a lot of pressure on Powell to drop interest rates. So guys, if my theory is correct, that rates are going to continue to rise, Aaron, I'm going to, I'm going to correct you, in my opinion, when you said this is probably the first thing, meaning the reduction in regulatory burdens, I'm going to go, let's put a colon next year point, I'm going to put a colon and say, you know what, interest rate policy is going to be this as important as the reduction of regulatory burden because Trump does not want rising interest rates. It's going to be bad for everything. And so it'll be interesting to see if he tries to exert some type of pressure on the Fed, which again, they're not supposed to listen to it. They've done a pretty good job, but boy, we could see what, you know, how those two could really start fighting like two brothers right from day one. Yeah, and it'll be interesting to see how quickly we start to see that pressure being applied. Yes. This will be the public. I think, yeah. Yeah. And this will be the public display of change, whereas the regulatory will be kind of more behind the scenes when we're fighting people into the market. Yep. Exactly. Right. He proved it in 2016, actually, 2017, when remember that kept it down basically to zero for Obama, and then remember he got in and started raising. That's right. You're right. You're right. You're right. You're an absolute fan. And they lowered the rate. So I do believe he has that if you remember that memory didn't take long, we really started raising rates. Yeah. So I agree with you. I think that do you see a quantitative easing at all? Do you see the Fed becoming part of the market players? No. You know, and for those of you not familiar, remember the Fed had a massive balance sheet. It's still pretty large because they, what they were doing is they're going into Dwight's world, into the mortgage backed security markets, buying mortgage backed securities. And basically, that was a very, very effective way of keeping mortgage rates down. Well, you know, after COVID and things settled down, they said, we're not doing that. We're going to let them run off, meaning when those bonds reach their maturity, the Fed normally and, you know, in prior times during the pandemic, they'd go in and buy those bonds and put cash into the system and get cash into the monetary system. And that, again, keeps rates down. Well, they're not doing that. When those bonds expire, they're just letting them run what's called run off the balance sheet. And so Dwight, I think that that is a quiver in their, in their arrow bag that they could do down the road. But I think it's going to have to get really severe before they even start to start talking about doing that. I think they're going to pull out other tool drawers and try other things if this inflation continues to run, like it's starting to do and rates continue to go up. Dwight, I want to squeeze in very quickly here because I know you got to run to an event. What do you think about Trump's policies, and again, or could this be a one, Trump policies, supporting veterans, rural housing, you know, to Aaron's point, from a lending standpoint. I know there's a lot of programs now, but you think this is the room for improvement. I guess is the point I want to get across. Yeah. Yeah. Absolutely. And to Aaron's point, it's a qualification, right? We are not giving the benefits about everything. The glass is half empty right now, right? It has them for the last four years. I think Trump, what he'll do, at least make it look half full. Hey, why would we not do this loan for this veteran? Why would we not make a concession here and do this? So I do believe there's outlying areas. Okay. 2014 USDA completely flipped their program upside down and nobody can qualify. 2014. Yeah. So it's like, come on, what is the problem here? You know, they want certain amount of trade line, trade line numbers and this and that. And it's, yeah, these are things I think they can direct, but I don't know if they can get into the trench with us and discover this. I think if they're going to have to roll up to sleep and jump in the trench and figure it out. Okay. Okay. Okay. No pun intended, right? Right. Go to your event. All right, buddy. Thank you. We'll chat with you next Tuesday. Do I have a large synergy? All right. I'll get out of this phone number. And now we come back. Let's wrap it up with Kristin Snow in the right now. Traffic center. Hello, Kristin. Welcome back to the John Sanchez show on news talk 780 KOH. All right. Mr. Mallard again. He did have to step aside. So in the meantime, Mr. Clark, can we please get your phone number? Yeah, six, seven, three, sixty, seven hundred. Beautiful. Of course, Mr. Mallard, synergy one lending, as I mentioned, his phone number, of course, seven, seven, five, two, four, zero, two, zero, two, two. All right. We've been talking about again, housing market solutions under the Trump administration. We've got a bunch of points, but as always, time is not on our side. So Aaron, I want to jump to point number six on your list. Supply side solutions for inventory shortages. What do you mean by that one? What can we do there? So as far as the supply line, we're kind of talking about the expansion of housing in rural areas, which we talked about a little bit earlier. One of, I know, one of the, and one of the speeches that Trump gave in, when being president was expanding housing in rural areas and incentivizing growth in those areas, I think there was one speech, in fact, that he was talking about creating new cities within the United States. So it'll be interesting to see how that translates into actual change and growth, but to Dwight's point about USDA loans, those were typically for expansion into rural areas. So incentivizing the growth in those areas by providing loans, typical of that is going to cause growth automatically. It's also more affordable. If you look at our rural areas that we have right now, if you want to buy a home and let's say you can't afford something in the heart of Reno or Spark, you can go to those outlying areas and get the same thing for about 20% of the cost. Okay. Okay. We're 20% less. Yeah. 20% less. Yeah. Yeah. Yeah. Yeah. Yeah. Yeah. Real estate is inside me up. Yeah. Real quickly on that point, what about some type of tax credits and various things like that for the developers? I mean, starting at the heart of the issue, which maybe give a bunch of developers a bunch of credits and tax credits, et cetera, that could spur them to start pounding some nails and getting some homes built. Yeah. You know, you hear the whole adage of like, oh, we don't want to cut tax breaks on the rich and the business owners because, you know, that's not fair. It's the little people that need it. Well, when you start taxing, getting tax breaks to those business owners, they're going to use those tax breaks to expand and hire more employees. The housing market is the same scenario. When you start to release some of this regulatory stuff and give tax breaks to these developers, then they can get in there and build more homes at a more affordable rates and then pass that on to the consumers. Right. You concerned at all that if they do the, quote, "round up" of illegal immigrants and that wipes out a lot of the workers in the construction industry? I mean, it's hard to tell because you don't really know, but most of the people that I see, they're not really using that. Okay. Yeah. Good, good. That's even better. Great job, my friend. I know as a fast show, we appreciate you as always Aaron Clark of Israel. We'll do it again tomorrow on the John Sanchez Show. God bless them. Have a great evening. This program was sponsored by Sanchez Wealth Management. The material in this program was intended as general information only and should not be taken as specific investment tax or legal advice. None of the information on this podcast was intended to be a solicitation for the purchase or sale of any security. Further information is available by contacting John at Sanchezwealthmanagement.com or 775-800-1801. John Sanchez offers securities and advisory services through independent financial group LLC, a registered broker, dealer and investment advisor. Member FINRA SIPC. Securities only offered in states John Sanchez is registered in. Sanchezwealth Management LLC and independent financial group LLC are unaffiliated entities. Synergy One Lending Equal Housing Opportunity, NMLS #1907235, Dwight Mallard, NMLS #241259, phone number 775240222. The information provided today is for educational purposes only. The position strategies or opinions of the show do not necessarily represent the position strategies or opinions of Synergy One Lending or its affiliates. All information loan programs, interest rates, terms and conditions are subject to change without notice. Synergy One Lending offers home loan financing only. Synergy One Lending is not affiliated with the John Sanchez show. Any speakers, companies or institutions feature. This is a paid advertisement. There's only one feeling like knowing your banker personally. Like growing up with a bank you can count on. Like being sure what you've earned is safe, secure and local. There's only one feeling like knowing you're supporting your community. You deserve more from a bank. You deserve an institution that stood strong for generations. Bank of Colorado, there's only one member FDIC.