Hello, everyone and welcome back to a new video shows the name - and this is what we're talking about today. Everyone in the entire damn world is talking about this right now, so I'm not even gon na mention the name, because I don't want this video to get demonetised. So I'm going to refer to it in this video as beer. But what I do want to talk about today is what, in the hell is going on in our financial economy in America and how its relating to the mortgage industry, unless you've been living under a rock you'll, see that this pandemic is literally causing the world to Go up in flames right now: the stock market in our financial economy is going absolutely nuts and because that mortgage rates went absolutely nuts, as we saw the lowest interest rates we've ever seen in the last 50 years, five - zero.

50 - that's not just before my time! That's like double before my time, but since I'm a mortgage lender, I am in the thick of what's going on, I mean I have been receiving 30 to 50 calls and texts per day. People wondering. Is it a great time to refinance what is going on with rates Shawn? What in the hell is happening right now, so there's so much that I wanted to dive into in today's video as to why everyone is trying to refinance in why mortgage interest rates are so dang low because of this financial frenzy. We are in right now.

So do we do we wait? First and foremost, let me get you caught up to speed with, what's actually been going on over the past week or two, the feds issued an emergency rate cut on March 3rd 2020 of 50 basis points which is insane like so insane. We haven't seen this much movement in a single day since, like 2008, usually rates move anywhere from 1 to 7 basis points per day, so 50 points in a single day is absolutely insane. It's not actually what started this financial frenzy, but it's what actually amplified it prior to the rate cut all these people in other countries wait. I guess pretty much just this one they've just been tossing a little too many of those back and it led to this crazy outbreak.

Since this, the internet and there's so many dumb people out there. Please do not think that this beer is what actually caused. What's going on right now, this beer has nothing to do with it. Ok leave Vin Diesel's favorite beer out of the equation, but because this thing we had a little bit of a supply problem because most things US Americans buy come from China.

So when people in China aren't able to work and produce the goods that we buy, we've got a little bit of a supply problem, or do we did it impact our supply chain, a ton? Yes, it did impact us a little bit, but not as much as everyone thinks. We've actually gone through way, tougher hardships in regards to supply chain with like oil over the past few years, and it did not lead anywhere near to a financial frenzy, as this is in fact the main reason why the feds cut rates is because it's about Trump. In this economy is Trump's economy when the economy is great, Trump looks tremendous and when the economy is not so great, well Trump, just kind of looks like a shriveled up orange come on, I'm not for or against Trump. So we're not gon na go down that rabbit hole.

We're gon na stay on course right now, I'm just saying that the economy is a direct correlation to Trump's presidency and, more importantly, to Trump's 2020 presidential elections. So when this outbreak starts getting out and people go uh-oh is this thing a major issue and the economy takes a little bit of a dip. Trump goes. Oh, we need to make this economy pump in and rockin, so everyone thinks that hey.

I need to be reelected for another four years. So how do you keep the economy strong? Well, you make money cheap. You make interest rates super low, so people can go to the bank and follow this for basically free when you can get money and loan money for ridiculously cheap prices. You're gon na go out and buy stuff when interest rates are low and that money is really easy to get and it's not really charging you a whole lot.

You're gon na go hey, I'm gon na go, buy a house, I'm gon na go, buy a car, I'm gon na go buy a boat because interest rates are so low. This money is practically free. Then once people are out buying things and the demand is super high and the supply goes down and that's exactly what we've been seeing in the housing market over the last six months, since rates have dropped about six to eight months ago, the housing market has been Absolutely fire more fire than it's already been previously so because rates are so low everyone's out there buying and there's not enough houses to buy it's not enough goods to buy. So our supply drops a little bit now.

We've got a little bit of a supply problem and that's the issue we're running into, but what happens is because so many people are out buying and spending money. Our economy keeps boosting and boosting upwards because it looks like we're in a really good economic time, but anyway, that was the strategy was to hey, there's this epidemic going on. Let's, just kind of you know cut this thing and kill it in its tracks by slashing rates to get even more people out buying and spending money, but what actually ended up happening well on March 3rd mortgage interest rates tanked, and when I say tanked I mean Like world war ii invasion, Hey, I had six refinances hop on my desk that day and then by the end of the week on Friday, which was March 6. That was when we saw the lowest interest rates we've ever seen in the last 50 years.

Media news stations and everywhere is blowing this thing up saying you need to refinance your home right now, rates are so low and blah blah blah blah blah so bring us back to the supply and demand. There goes. The demand to refinance is going up and up and up and more people, borrowing more and more money. So two things ended up happening.

One lenders got swamped. There was already a ton of refinances happening because rates were so low, but then there was just this massive boom and there wasn't enough manpower to actually keep up with how many mortgage applications we all got from people trying to refinance their homes. I'm not even exaggerating there was lots of sleepless nights and Wells. Fargo is even quoting people 90 day turn times on refinances because of how many refinances they got 90 days, that's insane unless brokers were barely able to keep up with it.

Just because we don't work a nine-to-five, we were able to work all night, but what ended up happening was to put a hold on all these refinances. All the bigger banks and most lenders were saying: look. We cannot handle any more refinances we're gon na raise our rate, so what they did was they artificially raised their rates? Here's where Trump in the feds set the rates, but here's where banks and lenders were setting their rates because they couldn't keep up with the demand. There wasn't enough supply to handle all these refinances.

So everyone thinks rates are down here. Rates ended up being around here and then what happened on March 10th, the 30-year aka mortgage rates jumped up 84 basis points in a single day insane, but way. You know what happened on March 11th yeah. They jumped up another 66 basis points, oh yeah, and in March 12th you asked yeah we're gon na crank that sucker up another 87 basis points.

That's 237 basis points over the course of three days. So two things ended up happening. Banks and lenders were like hey: our rates are artificially hired because we can't keep up with the demand and this rule rates were well. Since rates went up that much these rates went up, but then banks, investors kept raising their rates.

So now we're way up here in rates just skyrocketed. It was a double whammy. I just kind of crushed us and I'm still getting people calling and reaching out saying, hey Sean our stock market is absolutely in the poop hole right now like is that mean mortgage rates are really good. I should refinance and I'm like.

Well, I can quote you a rate, but do you want the rate at 9 a.m. 10 a.m. 11 a.m. or 1 p.m.

because rates are moving every single second of the day right now and they're rubber banding they're moving up and down a ton? The volatility with mortgage rates is absolutely unreal right now, just like the rest of the market, but that's pretty much the mortgage side and the interest side of the Fed rate cut, but then number 2. The thing that kind of related to our economy was the fact that, once the feds actually cut these rates so drastically that so drastically, we haven't seen this since 2008. Everyone in America was like, oh my gosh, this beer problem that we have is in fact a problem because the feds are trying to get ahead of the curve and real quick. Is this beer problem an actual problem? I don't personally think so, because we have the big problem which, like what caused 13,000 deaths or something like that in America and this beer problem has killed like maybe a hundred people so far, and did we shut down schools and sporting events for the pig problem? Hell no, but anyway, the feds cut rates which pretty much solidified yeah.

We've got this serious problem that we've got on our hands and everyone in America was like. Oh my gosh we're going into our downward spiral of this economy. I need to sell everything. So people started selling everything, we're talking, notes, bran stocks.

Everything 401ks are in the absolute right now and that's great, because we can't even go to Target and buy freaking toilet paper to wipe our butts. More panic means more volatility, and, since the media and social outlets are blowing, this thing way out of proportion, it's literally killing our economy. Hearsay is killing our economy, not actual facts. Hearsay nobody's worried about what's actually going on with the Russians in regards to oil.

Right now, which is a direct correlation to what could happen to our economy and it's a factual correlation, not just a hearsay correlation, but no one's worried about that right. Now we're all worried about this beer problem, and that thing is it's just pumping itself further and further media outlets. Every time they mention this word they're getting more and more traction in more and more ratings and they're, getting the rocks off even harder. By mentioning this thing, so that's pretty much what's happening in our country right now and really across the world and, as things start shutting down because of this you're saying because of this beer problem, we are gon na start running into some serious economic issues.

But as of right now, before everything is being shut down, it's really not as big of a deal as everyone thinks it is. The housing market is still absolutely fire right now, even though you know it kind of follows the stock market on a little bit of a lag, but the housing market is absolutely firing. People are still spending just as much as they were prior to all this crazy pandemonium in the last two weeks. But that leads us to the question.

Okay, Sean now that we know kind of what's happening where our mortgage rates headed because of all this. And I don't have a crystal ball: no one knows where they're gon na end up going, but everyone's saying well in the past, whenever we've had an economic downturn, we just kind of cut rates. Mate made money a lot cheaper and people have gone out and spend more money, and that's what's kind of got us out of these economic hurdles since rates are already so low. What are we gon na do again, nobody knows and really what's my opinion worth, even though I kind of called that video, but I think one's base and lenders actually catch up on all this refinance business.

There's no longer gon na be this artificial rate increase gap and we're gon na come down to a rate should actually be at that's gon na help stimulate spending and get us back on track. Is it gon na be enough to get us fully back to where we were and kind of recuperate all of the points we've lost on the Dow? I don't really think so. I think rates seem to go down just a little bit lower than what they were previously at, because people are gon na see them go back down to where they were and go well. You know we're still kind of uneasy, because we were at this point at one point and nothing really happened.

So if we get lower than what we were, then I'm gon na go out and I'm gon na spend more. I'm gon na start hopping on all these investments and potential lowered price on goods, and hopefully that's gon na get us back to where we want to be in our economy. Are we gon na see negative interest rates in ridiculously low interest rates? Like some other countries? I don't think so, but that'd be pretty legit. If we can get to that point, I just don't think we're gon na need that to get our doubt back up to where we want it to be.

Who really knows, though, I feel like it's just the higher-ups in our society playing a game of chess and all of us are just the pawns at this point, but I don't know we'll see where this whole pandemic goes. It's just important to get the facts and actually understand, what's actually happening opposed to what the media is saying is happening because, like I said, the housing market is still absolutely fire right now, I'm getting contracts come across my desk daily, so there's still tons of people Out spending - and it's really just all this hoopla going on, which is what's hurting our economy, but we'll get through this like we always do, let's be honest, but if you enjoyed the video, then I'd really appreciate it. You can share it with a friend also just hit the like button on it and subscribe for more content, because I'm always trying to release content that'll, give you a step ahead, everyone else. So, hopefully you enjoyed the video and I'll see you in the next one.

Stay thirsty, my friends.