Millennial Housing Crisis: Can They Ever Own Homes? | Kori Hale

Eric Chemi 0:05
Welcome to Wealthion. I’m your host, Eric Chemi. We’ve had so much user feedback, comments, questions coming into us talk more about housing, real estate homes, can I buy land? Can I buy properties? How do I make money, investing in real estate? Or how to at least afford a home? Right? There’s so many layers about where you can be on the real estate front. So I’m pleased to bring in a housing expert here, Kori Hale, thanks for joining me on the show. And let me let me get this right. You’ve got a lot of titles, right, CEO of culture banx, Forbes, contributor, you got your social media, following your own channels, your business and culture expert, and you’re doing a lot with housing and real estate. Did I get that right?

Kori Hale 0:44
Yes. Eric, you nailed it. Perfect. Awesome.

Eric Chemi 0:47
Well thank you for spending some time with us. Because here’s the thing that I wonder about, right? incomes have gone up a little bit. Prices have gone up a ton. And when you think of that ratio of the number of years of income, you need to buy a house or you know, like the the ratio of housing price to income, that’s just gone up by a huge factor that I wonder, can anybody with a normal job, who’s not a multimillionaire actually buy a reasonably nice house, and we’re just losing that American dream now?

Kori Hale 1:17
Wow. Well, let’s hope Eric that we are not losing the American dream and albedo, it is becoming much, much harder to achieve. And I love that you brought up the fact about the fact that didn’t come out and gone up but not at the same rate, right that we’ve seen inflation go up. And that is part of the problem. It’s all about the mortgage interest rates, I will say I don’t want to be all doom and gloom because we are at least off those 20 year highs that we’ve seen on interest rates. Right now they’re hovering around 6.9%. So finally falling below that 7%. But it all is up to the Fed and what they’re going to do. However, I will say the broader market is predicting it this way, or that we are going to see rates go down. And you know what that’s going to do that’s going to spur the market for both buyers and sellers.

Eric Chemi 2:08
How much of that she thinks about the rate though, right? The borrowing rate is one thing, the price of the home itself is the problem, right? Because even if I had all cash, right, back in the day, people didn’t borrow as much, right, they just save up, buy the house. And, and now it’s like the price. Even if you were an all cash buyer, you can’t get enough cash to try to buy the house because the price is so high,

Kori Hale 2:29
the price is very high. And I’m gonna give you a personal example. Because I was someone who participated in the market in the real estate market on both sides as a seller and a buyer last year, and 2023 in New York City, and I sold my condo, it was an all cash deal. Insane blew my mind that someone had this type of cash sitting on a cow waiting to buy property. And then I decided to move to Texas, and I’m buying a house but I need to finance it. I don’t have that type of cash sitting in an account somewhere. And it was difficult. The interest rates were sky high. But I love that you said it’s not all about the rain, right? Because you’ve heard this saying, you know, you’re married to your location, you’re purely like dating your interest rate and you are dating the interest rate, the home prices themselves, they’re going to go up and this year alone, the Federal Housing agency actually expect for home prices to grow by 4%. What if I was to put this into a better perspective, I really like to make this tangible for our viewers and really put some numbers around this area specifically, right? If you look at a home with a 70% interest rate, right, it’s gonna take around 110,000, maybe a little lower $107,000 to actually buy a new build or an existing home. Now, if that interest rate drops by just 1%. So I’m hugging going from 7.1%, everyone down to 6.1%, you’re only going to need anywhere from 99,000 to about 103,000. That’s given the 4% price increase in the overall price of the house to buy something new, a new build or an existing home. So the interest rate while it does not make or break whether or not you buy a house, the price of the home, right? That will be the ultimate deciding factor. However, if there’s more wiggle room, and that interest rate, the amount of house that you’re able to afford with doing a modest 5% down I’m not even saying going all in at a 20% down type of thing. You stand a much better chance this year.

Eric Chemi 4:31
There’s been an argument. I remember talking to the head of cell phone, the founder of cell phone going back many years. And his point was the government. Right is the biggest predatory lender. And obviously His thing was in student loans, but it’s similarly with mortgages is that the idea that they encourage they subsidized loans, they they make it that this is a borrowing culture, and everyone’s stuck in debt rather whether it’s housing, education, same idea, right? The government is that backstop So we borrow more than we should, and prices are higher than they should be both in housing and in education. Right? Anything the government subsidizes the prices go way too high, because we borrow too much. It’s not a real market driven capitalism system there has these weird skewed incentives. Do you agree with that? Do you think it’s if the government actually just got out of it be like, you know, what, not gonna push the price of these homes up, just do whatever you want, could actually bring prices back down to some reality levels,

Kori Hale 5:28
I’m not necessarily sure that that’s going to bring the market stability that people wouldn’t necessarily hope for, if the government which of course, they do hold the majority of mortgage loans across the country, we’re talking about Fannie Mae, Freddie Mac, these big government entities that are backing only really, I would say, propelling a lot of the real estate market across the country if they were to leave the market, right. And let’s just say all capitalism just goes or the way that we think in our minds, it’s going to work out, that’s not necessarily the case, because there is some type of stability that the government also raised to the market. Now, in terms of overborrowing versus what you actually meet, I mean, that’s part of the American way, so to speak, or the American Dream that you referenced earlier, it’s one day I’m going to have a nice house. Well, most of those nice homes, they just don’t cost $100,000. Here, you and I both know that it doesn’t matter where you live in the country, the median home price for a home as of November of last year, was hovering around $380,000. That’s a lot of money for a house, everyone’s not for the average

Eric Chemi 6:36
house in the average place in the average part of America, you’re talking $400,000. That’s a mind boggling number for the 50th percentile.

Kori Hale 6:47
Yes, you’re exactly right. And I didn’t even mention out of West California, Oregon, the state of Washington that starting at around 600,000. And I’m not talking you know, a beautiful mini mansion, a brand new, all sparkly, I’m talking just a whole, you know, something with a roof over your head, these are very big numbers are people to try to swallow for them to wrap their minds around. And they shouldn’t be, it’s almost a bit absurd, who has this type of cash, it’s just that the market is not necessarily going to retract back what we saw during the Great Recession in 2007 2008, when we saw that housing bubble, we’re not going to see home prices plummet in that way there is going to need to be some type of work around, but I just don’t see the whole prices falling significantly by any stretch of the imagination, not just this year, I would say in the next five years.

Eric Chemi 7:42
What do you think about these? You mentioned home prices? What do you do with the idea that inflation actually, you want to buy a bunch of real estate, right? Because if inflation continues to be a problem, as we, you know, so many of our guests talk about the massive national debt, the deficit all of these things that they’re gonna have to inflate their way out of right to be able to pay it back? Do you want to just go and buy as much real estate as you can? Because it’s nominal prices, right? And that’s real assets. Inflation maybe helps you in that case, right? high inflation helps you the value of your homes

Kori Hale 8:12
High inflation does help the value of your home. And I wouldn’t necessarily say you should go out in bilateral real estate, especially on the cash side. But if you have access to cash, which to me is always the key moreso than having the cash or the access to cash, it could be a very lucrative opportunity. Look, no matter what type of market cycle we’re in, in a real estate, there are always going to be opportunities to make money to come out a huge winner at some point. And of course, depends on how you’re looking at your real estate. Are you looking at it on just the residential side, or you’re looking at on the commercial real estate investment side? And of course, for the purpose of this conversation? We’re speaking more on the residential side, but there is a lot of opportunity on the commercial real estate side as well to make money in a high inflationary period.

Eric Chemi 8:58
So you know, tell me about on your channel, what are you getting feedback wise? What do people want to know about you’re you’re obviously reaching that younger audience, right? That millennial audience, that first time homebuyer, maybe, maybe if they’re lucky, they actually invest in a property that they’re getting rental income on, but it’s usually buy my own home first, then try to make some money off of someone else’s home. What are the conversations and the kinds of questions you’re getting from that audience?

Kori Hale 9:22
I love that you asked that question. It’s a great question, Eric. And I will say the main thing they’re asking is, what city should I buy a home and because a lot of them to your point, they may own their own home if they’re able to do that. So they’re looking at this next real estate purchase to be some type of investment property. So they’re saying, Cory, what cities? Can I make the best return right on my real estate investment? Which Eric, I’m just gonna throw it out there. Do you know what cities this year are actually slated to be the hottest housing markets in the country? I’m just throwing it out there.

Eric Chemi 9:57
What I mean, I don’t know I’m gonna guess her 24 minute gas like let me think so we had the big you know southern move right all your Vegas, Phoenix, Texas like, like you’re part of the Texas migration, the Carolinas the whole Montana Idaho thing so I, I don’t if I had to guess. And Florida’s overheated I gotta assume it’s something southern but I don’t know, right maybe it’s maybe it’s Alabama or Mississippi or something that’s just adjacent to the ones that have been hot already.

Kori Hale 10:30
Okay Eric, you’re a little bit off and not completely. So the migration is still happening. A part of it is likely happening in reverse, though, the top three housing markets for 2020 for this according to Zillow, Buffalo, New York, so we’re talking way up safe Central New York, in middle of the cold tundra, as I like to call it, that place gets more snow than any part of the country. However, Buffalo number one on the list, followed by other cities like Cincinnati, and Columbus, or we’re talking about going out to the Midwest. So the migration happening just happening in a different way. And the reason that buffalo is on track to be the hottest housing market for this year, is the fact that it has the highest number of new jobs in the city, per home permitted, which is actually an expected measure of demand. So it’s very, very fascinating, because at this point, you can’t just move to a city and hope you’re gonna get a house right, with the migrations happening all across the country, because you’re going to be priced out of the market. So now a lot of people are going to what are the areas where I can get a good job in relation to the housing affordability, and those are the top three cities of Buffalo, Cincinnati and Columbus.

Eric Chemi 11:43
That’s funny, you were saying those cities while I was my drinking my water, and I almost spit it out, because I was just so shocked to hear that, but I don’t. I’m gonna have to dig into those numbers because but it’s hard to believe that right? I get the reverse idea. Then I thought, well, maybe they’re coming back to New York or coming back to California. But to go to that thing about those football teams that your buffaloes, your Cincinnati’s, like the freezing cold winters that we’ve seen here in the last few weeks in the playoffs, those those snow games and buffalo. I struggled to believe that. But I appreciate that data point you mentioned, right the number of job openings, right, like this idea that that’s where the opportunity is. And it makes me think about a research paper maybe it was like an economist or an expert on happiness, one of these kind of guys that said the same thing. People keep asking me, Where should I move, right? People want to find a city that they think will make them happy. And the guy said, You got to find a job that’s going to make you happy, and it won’t matter what city you live in. Right? If you can find the right job, you can, you can be happy in Los Angeles, New York or, or the middle of nowhere. But if you’ve got a really crappy job, or no job, I don’t care what city you’re in, you’re gonna be miserable.

Kori Hale 13:03
Right And I mean, you know, as well as I do for a living on the East Coast. You know, in New York City, the greater New York City tri state area, you’re gonna make a lot of money to be able to afford a home in these areas, right? It’s expensive. So making $100,000 in a New York City, I mean, that’s like pennies on the dollar to some extent, like you’re barely scraping by, as opposed to going to a Buffalo, New York, and maybe you’re making $100,000, you got a good job, you know, at some of the companies that are headquartered in the broader Central New York, eastern New York area, like a carrier, huge air conditioning, Copic things of that nature, where you can make a really good money, and the price of the home is not going to, you know, be such a shock to your financial budget into your system. And there’s a lot of, you know, migrations that always take place across the country. And a lot of it stems with what you just said, it stems where the jobs are, where they’re coming from, and where people think they’re going to have the best quality of life.

Eric Chemi 14:03
So it’s to dig in more on so these are the conversations that people are asking you like, where should I move to, right? So when you see a data point, like a buffalo, or Cincinnati, or you say to them, Hey, well, this is what the data says, You should go there and they and they say, Sure, I’m going to do that. Or they’re like, Oh, I wasn’t looking for that answer from you.

Kori Hale 14:21
They’re definitely more so when I wasn’t looking for that answer. However, I’m going to shout out buffalo because my mother is from Buffalo, New York. I spent my summers as a kid hanging out with my grandmother in Buffalo, New York, but only went in the summer, so I didn’t have to experience the winter. But yeah, they’re not necessarily excited. However, you have to remember 1020 years ago, people weren’t necessarily clamoring to move to Austin, Texas, clamoring to move to these other areas either. Tesla wasn’t an Elon Musk wasn’t trying to move his company right to Austin. Like this wasn’t a thing. So with a time in perspective, things can always shift.

Eric Chemi 14:58
It’s a good point. That’s a good point. Um, what are the other other questions you’re getting from people do you get? Do you get advice for questions asking for advice about owning properties to rent out, like becoming a real estate investor, or is it much more about just, I need to buy one home somewhere and get my life as an adult started?

Kori Hale 15:20
I think a lot of people, they go back and forth, right, some of them, especially in the millennial category, here, they’re saying, hey, you know, I want to live in a major metropolitan city and I want to live in the city, not on the outskirts, and I can’t afford some house or some nice condo, I’d rather pay $4,000 a month and Iran and live in some, you know, full service, high rise building on Miami Beach or something like that. And then I’ll will invest in real estate property in the adjacent Miami Dade County areas, and maybe try to flip a house or something like that. And to that I say, it’s all about what your long term financial goals are. Now, of course, I am not a financial advisor by any stretch of the imagination. However, if your ultimate goal is to be able to make a return on your investment, by buying property, then the sooner you get into that, the better off you’re going to be because you pay $4,000 a month in rent as some apartment, you know, putting you over $50,000 a year just in rent alone, that’s money, you’re never going to get back. So why not take that money and put it in some type of property somewhere where you need a lease, eventually borrow against that money if you need while still keeping that property, sell it and make a nice return on that investment and turn around and put that into more property. The Rachel game is set up to keep you in a cycle of debt. And in a cycle of constantly feeling like you have to owe someone money, which I love that you referenced that earlier, especially around student loans, you think it’s not just mortgages, car payments, it’s all the people are set up with a mindset that they’re always going to have to be paying some type of bill to someone. And that’s not necessarily the case, it is possible through the right investment and real estate could be one of those great vehicles that you can get yourself out of that.

Eric Chemi 17:20
That’s that’s kind of what I was trying to get out earlier. So I’m glad you said it better than me is now he’s on the fray, people are getting stuck in the rental cycle, because the homes are selling affordable, right? Where it’s the person who says, I want to be able to buy a home. And I’ve got my college degree and I studied really hard and I’m very good and academically driven. And I’ve got a good office job. But the office job pays $100,000. Right? It’s like, which is a lot of money still in America, but but in a big city that gets you nowhere, right? Like when you mentioned that 380 number. You know, I’m looking at like the towns like the town I’m in right now. Right? You can’t you couldn’t buy the worst house for 380. Like there’s nothing available for three ad in this top right. So I think if you spend maybe 450 or 500, you can get land with like a dilapidated house that’s been condemned, right? So it’s like, this is what you get for 450 or 500. And so now imagine someone’s making 100 grand, but I’m still paying rent. So I’m not able to save, right? And I can’t get the downpayment and the cost the home is so high, unless I take on a massive mortgage if I can’t even get that mortgage. So that’s my fear is that there’s, there’s there’s no way out unless at some point prices come down.

Kori Hale 18:34
There can be some ways out prices are never going to come down to a point where I think people say, Oh, I’m finally comfortable, just purely based on the price of the house, to jump into the market for something like that. They’re going to have to go really perhaps far outside of their so called comfort zone areas, which I highly recommend for people because at the end of the day, you want your opponent to be your place of solitude and peace. And are you really going to be that peaceful of you’re not living in the general vicinity of things that you want to be around and places that you want to go. Probably not. However, first time homebuyers have a unique position, right? We’re not talking about people that are you know, on their second, third, fourth, fifth house, those first time homebuyers, typically tend to be younger people and I’m going to use the word younger loosely because right now Millennials are living at home a lot longer than they used to not even to mention Gen Z, we will talk about them in a whole other real estate conversation. But first time homebuyers right they are really looking to do a down payment of around 8% on their home, which is far different than as I referenced the repeat buyers that are looking to put down around 19 20% As I stated earlier, so the 8% down Well, that’s pretty much a significant amount down. It’s not going to be enough to ward off the all cash buyer. So the way to really set yourself apart, right is to get in with someone who’s saying, Hey, what are the flexibilities that I can get with this new first time homebuyer that would make me want to not be interested in an all cash deal. And of course, that’s going to be very difficult. As I said, I accepted an all cash deal last year, because it was going to be a much quicker close. However, if you are a first time homebuyer and you’re gonna be able to show up right to the table already pre approved, which means that you can typically close within 14 days, and you can be a bit more flexible. And the current homeowner in terms of their timeline of moving out, they won’t necessarily have to move out in the two weeks, they can, you know, rent some weeks or a month back from you until they figure out where they’re gonna go next, that can spice up right the opportunity for you to get into a home for the first time. And I’m gonna put it out there, there are other ways of bringing cash to the table aside of the fact that you’re trying to put away a few 100, a few $1,000 every month to save for a home, if you have a 401 K, you may borrow against your 401 K folks to buy your first home. And this is money that you actually don’t have to pay back with interest, you do pay the money back, but it’s not an interest on the loan from your 401 K that can also help you have a bit more cash to show up at the table with it is a competitive competitive space to get into. And the main reason for that is because there was money to be made, the housing market is on fire prices, as you mentioned, they are super duper high. So people always want in on an opportunity to make money. He doesn’t mean though, that the barriers to entry are absolutely unattainable for the everyday person.

Eric Chemi 21:44
Those are some good points. I wonder about the 401 k loan. So let’s say you’re invested in the markets, right in the 401K, will they sell that out to give you the money? Or does that investment stay in there while they’ve lent you the money?

Kori Hale 21:57
Um, I wouldn’t say they sell it out. Now granted, I don’t I can’t speak for all 401 K plans and how they work you’d have to check with your individual employer, everyone. But um, I wasn’t

Eric Chemi 22:08
I know they do the loans. So that because I had forgotten about I know they do the loans in the 4k, but and yeah, maybe we don’t know the answer. But it was just something I was thinking about. Like, oh, as you’re saying it? Can you stay invested? Can your investments keep going up while they’ve given you the money? Right? Or is it No, no, I gotta sort that one out.

Kori Hale 22:25
Investments can’t keep going up because you can’t take all of them. Right? You take some portion of the money invested. Right, you can take a portion, but you can take a fair, fairly large portion because technically it is your money, everyone. I don’t know what the parameters are. Specifically, like I said, I do think it varies per your 401 K plan provider and how all of that works. But it is something that people need to look into. And they need to really think about leveraging because you can get into our home. Let’s say I’m just I’m using nice, small round numbers. Eric, if you decide to borrow 10,000 to help put towards your down payment for a home, it is very plausible that within the first year to two years, you would have created that $10,000 in equity that you can take out of the house and put back into your 401 K.

Eric Chemi 23:11
Right, right. Yeah, up here looks like you can do up to up to 50,000 or 50% Whatever’s last at least from what invested pdss So that’s the quick you know, the quick answer there. So most of it still stays still stays invested there. All right. Tell me about the move to Texas. Why did you go there? How come you didn’t go to Buffalo?

Kori Hale 23:33
Well, I will say the buffalo thing just came out for this year for 2024. Also, I would just Syracuse for grad school. So I know all too well. About the tundra in the snow and that lake effect snow and it is awful. All my goodness. It is absolutely awful. Plus, I grew up in Texas. I’m from Houston, born and raised. I just been to New York City though for 15 years and London before that. And I decided it was time to come home be a little closer to my family and just get off the New York City subway.

Eric Chemi 24:04
Yeah. I got it. And then tell me more about your what is culture banks? What are you working on? What are you focused on? Who’s the audience? You’re serving them?

Kori Hale 24:13
Yeah, culture bangs. Wow. This is a wonderful news platform, where we do all things stock market driven business news for a hip hop culture by leveraging music, and everything is told through a culturally attuned lens. I always tell people, Eric, you should imagine if Spotify had a baby with rap caviar playlist, and CNBC, or financial times, that is culture banks. In a nutshell, we use music to make sure our audience has a more authentic connection with high level stock market driven business news and I encourage everyone to sign up for our newsletter. It is free and it is the only place you’re gonna find the most culturally attuned business news that meets your everyday needs.

Eric Chemi 24:55
that’s that’s searching. So what do you find is the disconnect like He’s obviously you worked in New York City financial media ecosystem at all and all the big names. And and now you’re reaching people in a different way through a different approach, right, connecting him with the music and hip hop and, and bringing a little bit more, you know, like a hip attitude to it as opposed to guys like me, we’re in suits all the time. Right? So what do you find is the disconnect between kind of, let’s say, your old audience that you are serving to the new audience that you’re working with? Now, in terms of, would you say fundamentally, they’re all reaching for the same goals, the same worries, the same concerns the same hopes and dreams? Or do they seem like they’re living in two totally different worlds?

Kori Hale 25:37
The fundamental void in the market is just that it’s the two different worlds. However, we all know there is only one world and we’re all living in it. But we’re all trying to find ourselves being representative before I got into media in New York City, I originally moved to New York City as an investment banker with Goldman Sachs that was right after my stint at UBS in London, and is during this time as an investment banker, before moving on to the big business news network that I realized there was such a lack of representation across the board, and so needed to be there to fill that void. And my last 10, down on the floor of the New York Stock Exchange, I was like, Oh, my goodness, it’s all these older men here, like not even one woman, this all these older men down here on the floor of the exchange. And this is why there’s such a big disconnect, and the information that’s going out in the people behind the dissemination, the creation of the news content, and if someone like me was already an investment banker, already, a digital journalist could not figure out a way to fill this void in the market. I didn’t know who else was going to do it. And I’m happy to say that for the past six years, we have been happily filling that void.

Eric Chemi 26:45
That’s, that’s yeah, it’s great to hear that. And then, you know, what else? In that in that homebuying world, like you mentioned, what cities? What are questions that you’re getting that maybe even surprise you? You’re like, oh, wow, I’m surprised that the audience is commenting or bringing me this kind of question over and over again.

Kori Hale 27:02
I’m surprised at the amount of people Eric, who consistently asked me, should I rent versus staying home with my parents, which I think is a lot of a pride situation, is what I’m gonna throw out, I’m gonna throw out I think it’s a pride thing more than like a pure logic, like, thinking it through

Eric Chemi 27:24
my money, like, should I spend money for the pride of living on my own? Versus saving money? To not have the pride of living on my own?

Kori Hale 27:34
Yes, exactly. Even though you can go to your friend’s place, or you’re still hanging out with people. I mean, this is a college or not having house parties anymore. Like you’re well past that, like the most you might do at a friend’s house at this point is like a game night or something.

Eric Chemi 27:49
Over the funds over yeah, there’s no more parties.

Kori Hale 27:51
Yeah yeah, I’m just saying it’s not like that type of environment. So I’m like, Wait, so you want to pay 1500, let’s say in a more affordable ish city 1500 $2,000 A month in rent, just so you can tell people when you’re already out, because you aren’t even at their place. So when you meet the for happy hour that you have an apartment. I’m like, blah, blah. That’s an interesting dynamic. And they are like, that doesn’t make any sides. Unless your parents are forcing you out the door. If they’re supporting you saving money so that when you do leave, you’re able to actually be invested in something, then stay. It’s not like who cares? I pride is like, let that fall by the wayside.

Eric Chemi 28:36
Interesting that that’s a great point. I never thought about that. Because it’s sort of like the one step before. The one that’s I’m renting. When do I get to buy my own house, they’re still trying to like, get to the renting stage. And maybe there’s a world where it’s, you just skip that step. Save all that rent money, keep it in your pocket, live at home, and then go buy a house and you’ve never wasted any money on rent. You have as much money as possible.

Kori Hale 28:58
Yep, the rest. Look, if you really want to have a rager that’s what an air b&b is for like, go rent an Airbnb for a weekend, invite all your friends over like, it’s fine. By the time you move out. Like there’s no great joy in renting and trying to figure out how to save money. I can tell you I did it in New York for a long time. If I’ve had family in the city that I could have stayed with as opposed to paying rent in Brooklyn and in Ireland, all those years, I would have done that. But I didn’t have that I had to pay rent. I had to save my money. And it was hard.

Eric Chemi 29:29
Yeah, yeah, exactly. Exactly. It’s it’s funny. So you mentioned you mentioned Goldman Sachs in London. And and I’ve got a little poll question here from from a Goldman Sachs global strategy conference in London, from January right really fresh. When do you expect the first rate cut? Right? When is the Fed going to cut rates for the first time? I don’t know if you’ve seen this or not. And you know, what would your guess be in terms of what you think the Fed is going to do? But what you think the other people thought the Fed was going to do what do you think the survey will say?

Kori Hale 30:03
Well, Goldman, they do a great job at forecasting things. But the Fed is always a tricky run, especially uncle Jerome, as I call them, Jerome Powell, everyone, Uncle JP, right. You know, he’ll get on the mic after every meeting and let you know, we’re hawkish or dovish, or we’re somewhere in between. I just think at this point. I think that Goldman definitely expects rates to go down this year by a bare minimum of 25. If not 50 basis point at some point throughout 2024. I think you want it’s possible, it could be too aggressive. I want to go with Q. I’m gonna go with q3 because I just don’t know, I haven’t seen the earnings come in from the q4 earnings come in yet. I don’t think those are going to start for a few weeks at this point. So I’m gonna go q3 Here.

Eric Chemi 30:59
So it’s funny, I would have guessed also q3, I would have felt like they have to commit to at least the first six months of this year. It’s like we kept breaking steady, because otherwise, what was the point of raising it, if you’re gonna immediately cut it? You could have just skipped that last raise and cut cycle and kept it more steady? I already guess q3. The survey respondents a full 50% of them. Think q2 will be the first cut. And it’s a 50% q2 33%. q3. Got about 9% in q1 right now that feels very aggressive, like they’re gonna cut. Now in the next couple of weeks. 9% of people thought thought that tonight perfect q1 50%, q2 33%. q3 where you and I were 7%, q4 seems reasonable. And then 2% of people thought, nothing this year, that it would be 2025 or later.

Kori Hale 31:54
Wow, let us all hope it’s not 2025. Let’s start seeing some I mean, at this point, the federal funds rate is hovering around I think it’s 3.1 to 5%, which is still above their target funds rate around two and a quarter percent. But it’s not that much higher. I mean, lord knows it wasn’t much higher a couple of years ago, so they’re not far from it. I guess we’re back to that soft landing and whether or not that whole situation is going to happen. I think you want it just sounds too aggressive to me. Like I feel like we’re just not far enough out of last year to make that commit.

Eric Chemi 32:32
Right And when you mean you said federal budget, but I assume you mean the inflation rate, right? When the inflation at three for the target of two? Yes, sir. Thank you. Yeah, yeah, the Fed funds at five and a half, right, five and a quarter, five and a half. Yeah. So just, there’s too many rates. I just want to make sure we’re all on the same page. But we know

Kori Hale 32:46
what is also different than the interest rate?

Eric Chemi 32:49
Yeah prime rate. Sulfur, there’s LIBOR, right, so many, and I think that’s part of the problem, right? Especially for the younger homebuyer, it’s confusing to them, right? They see the Fed move, they see interest rates in the banks, why is the Fed 5% My base giving me 0.02%? And I’m not getting anything in my checking account, right? Or why why is the Fed this but mortgages are 789 Right? So I think there’s a lot of confusion for that audience that’s trying to sort out what to do but it’s according to tell us everywhere where we can find you right? I know it’s culture banks with an X at the end we’re all the platforms we can see you.

Kori Hale 33:25
Yes Culture Banx with an X on all the socials as a as a young kid say also you can follow me directly. I’m Kori dot Hale, very basic on Instagram, KoriHale on X, things of that nature. So yeah, you can find me to all the places where people are found on the internet, St. See states. Awesome. Awesome.

Eric Chemi 33:48
Great. Thank you so much. Appreciate, appreciate the Insights is really fascinating to hear kind of your audience and what they’re what they’re asking you about what they’re worried about their mindset, right? It’s a good reminder on these different ecosystems across the country, that we’re all we’re all living here, right? But we all have different experiences and approaches. So thank you so much for joining me here on the show today. If you liked this episode, please follow it. You know, share it, like it subscribe, tell all your friends, comment, engage all of these things will help this episode get the content out there to as many people as possible. So again, you know, Kori Hale was my guest today from CultureBanx, check out her platforms, her sites and of course, Wealthion.com got a lot of information there more about this episode, all the other episodes and if you’re trying to figure out your family’s finances and investments, we’ve got people that we work with that we vet that we endorse it, they can connect with you, you can connect with them, you can fill out the short form there, and it’s no obligation, no commitment, no cost, have a conversation, see if they’re a fit for you. If they’re not no worries, right, just a public service that we provide for free, trying to help as many people as possible on that one and then of course, Anthony Scarramucci has got his weekly show Fridays 11am Eastern time it’s live. You get and watch it and give questions directly call in, comment right in as he’s live, or you go to Wealthion.com and submit your questions, and he’ll answer them later during the show. So thanks again for watching and listening and joining me with Kori Hale today, I’m Eric Chemi. We’ll see you next time.