Jacob Davis

00:03

What’s up? Jared Evanson, how are you doing today?

Jarod Evenson

00:06

It’s another great day for a podcast.

Jacob Davis

00:10

It’s another beautiful day on the Palouse I was mowing some grass today at one of my Airbnbs at about like six, like, oh, dark 30 this morning. And it’s got, like, the best view in Pullman, I think. And as the sun was rising, I took a video, I put it on Tiktok this morning, of like the the red, the red was still shining in the brain Brian, clock tower and just awesome, awesome sunrise this morning. Pretty cool. Check it out on my Tiktok. Anyways, how about them? How about them? Cougs, crushing. Man. We should have been we should have smoked the Huskies. We beat them, but I think we could have beat them by a lot more. They looked terrible.

Jarod Evenson

01:13

Coug nation is fired up. I can’t believe it. And then, I don’t know if you’re watching, but they’re doing a big drive with, like the coug Collective, doing some matching. They’ve got a bunch of new people joining the the monthly club, the ninth 20 club, like, like Cougs, are fired up. And that win was exactly what we needed to make things roll, I think, keep us on the right track. You know what I’m talking about. On top of that, we had those four other teams joined the pack 12 last week as well. Like, like, you could not have asked for a better week.

Jacob Davis

01:50

Yeah. Well, and then, of course, fed drop dropped it like it’s hot, dropped the rate, like it’s hot, you know I’m saying so I’ve, like, been busier, almost busier than I can handle all of a sudden this week. So fed comes out drops the rate 50 basis points. Am I saying that correctly? Close? Yeah. And it’s like, is, kind of like, Oh, my God. You know, it feels like buyers are kind of trying to not really rush back into like the idea of buying a house, but they’re kind of making decisions again. So that’s nice. So, so how does that work? So fed drops the rate 50 basis points. So is my mortgage. So if I go out get a mortgage now, it was like, what? 6.1 6.2 so am I going to be able to get it for like, 5.65 now? Or, how does that all work?

Jarod Evenson

02:52

Not that, not exactly, that’s so. So that’s kind of a big like misconception. The media does a very good job of making the consumers think that, hey, fed dropped the rate. My mortgage rate went down a half a percent to go along with it. You would be kind of shocked to know that that that happened on Wednesday. Mortgage interest rates were actually worse on Thursday than they were on Wednesday and Tuesday. So had a different impact, but, but here’s what I like to tell people, is the the Fed funds rate, which is what was dropped on on Wednesday, went down a half a point for the first time in over four years, right? It it had gone up over the last four years, and now we’re bringing her back down. But that rate is directly tied to more type of consumer type loans, like your auto loans, credit cards, boat loans, your savings account is actually affected by it which you’re getting a higher yield on your savings with most banks. The higher that Fed rate is, the more the banks are given your return. Because what that number is, is that’s the number that banks borrow overnight money with, basically. So that’s kind of the standard. Here’s what the overnight borrowing is, and so, so that’s what’s directly related to that Fed rate that was that just went down. So if you’re buying a car, you’re going to see better rate. If you have a home equity line of credit that’s on, like, a floating rate, you’re actually going to see that go down, but your long term, your 30 year mortgage, your 15 year your 20 year mortgage, those are all typically based off of mortgage backed securities now. Now here’s where they are kind of loosely tied together. We’ve seen over the last kind of six, seven weeks, interest rates just start to go they’ve gone down quite a bit, and that was in anticipation of this meeting that happened Wednesday. So in the previous meeting, the Fed said, hey, it’s time. It’s not today. It’ll probably be at the next meeting, we’re going to start slashing rates to kind of let people know in advance, and the market reacted in advance. So. So that’s what’s really, really cool about the mortgage backed securities, is we didn’t have to wait till fed day to have those rates go down. They’ve been trickling down. They’re, like, one and a half percent lower than they were six seven weeks ago, and that was because the market knew it was going to happen. So by the time the Fed slashed the rate on Wednesday, we’d already baked in everything we were going to see for the improvements for this rate slash. Now, what was different about the the rate cut Wednesday, though, is if if you would have came, or if you would have been placing a bet in Las Vegas a week ago on whether the Fed was going to do a quarter percent rate cut or a half a percent rate cut, your odds would have been in favor of the quarter, but then something happened on Saturday. Some reports came out, some tweets went out, some advisors made comments that said we should do a half a point and all of a sudden, the the odds were in the favor of the half point cut, and that’s what we saw on Wednesday. And so what does that mean, though? Like, do you know? What does it mean for the economy? Really, like, we’re going to feel it on the racial stuff, but what it means is, they feel like the economy is not doing as good as they thought it was. So consumers got really, really excited. Home buyers came out of little dorks. I can’t tell you how many phone calls and text messages I got about, hey, what’s should I refinance now? Like, like, you’re really, really close to where we should do that. But this didn’t affect that directly. Today, we’ve been watching this lead up to that. You know, the market lead up to that and and a lot of people who do have rates to start with a seven and start with a, you know, 6.5 or higher. They’re getting really, really close to where they could do that refinance. But the rest of the world, you know, the job market’s not as hot as they thought it was. Unemployment, it’s a little bit higher than people thought it was. And so that’s what’s really going on behind the scenes and kind of that’s what sparks now the Fed saying, Okay, we’ve got to, we’ve got to keep the economy from going into a recession. So we got to start lowering and that’s why I did a half point now, instead of a quarter, was to try to keep us from falling into recession.

Jacob Davis

07:18

So if I’ve got, let’s say I bought a vehicle or two at a higher interest rate. I could go and refinance those right now and save some money you might.

Jarod Evenson

07:29

Oh, you know, it’s kind of like houses, your purchase interest rates are always better than your refinance interest rates, usually So, but, but you might be able to save some money on that. A worth looking into. You’re supposed to see if you have a high rate. I would probably wait. So here’s the deal, though, if I’m you, or if I’m someone thinking about that, the one of the things that happened on Wednesday and then Thursday was all the extra commentary that goes along with the meeting. They don’t just walk in there and slash rates and leave they they actually do work. And one of the things they do is what’s called their dot plot. And what it means is all of the members of the Fed chair or of the Fed board, they go in and they literally got a board, and they’re, they’re putting dots, and they’re, they’re forecasting over the next year, what they think they’re going to do with the Fed funds rate. And they take that information, they compile it all together, and the consensus was that with all the members of the Fed, they’re saying we’re going to do at least another 50 basis point cut by the end of the year. So we’re already 10 days away from October, so between November and December, we’re going to see another likely see another 50 basis point drop in the Fed funds rate. Which car loans now they’re going to be even that much better, credit cards, personal loans, that kind of thing. So I would hold off if it’s me and I’m in that kind of consumer debt, just a little bit longer.

Jacob Davis

09:07

Okay, that is good to know. Yeah. So what now?

Jarod Evenson

09:18

So anyways, but, but with, with all that said, though, Jacob, you and I were talking before we got on, your phone’s been ringing like you’ve been it’s it’s been wild. What do you think this is kind of driving more home buyer because rates are down? I mean, even though we can’t say it was because of yesterday, but rates are down.

Jacob Davis

09:40

So would you say there’s a lot of fake news out there right now about interest rates or inaccurate?

Jarod Evenson

09:47

It’s just inaccurate because they are down. They just were already that we we’ve been we’ve been going there. I think we’ll continue to see them go down even a little bit more. But here’s what’s happening. Zach, what you’re. Seeing is what I’m seeing, and it’s what a lot of agents I talk to are seeing, is more buyers are showing up, which is in turn, making more. And we talked about this before, more home sellers are saying, okay, rates not at 7% anymore. I’m at four. I can sell and buy something else and not get whacked on a higher rate that bad. So competition is picking up.

Jacob Davis

10:21

Yeah, I’ve, I’m getting, I got a house in contract on Wednesday that’s been on the market for a while. Had ton of showings, ton of people just like, almost about to pull the trigger. So, so that’s nice. I got another house in Colfax that, you know, buyer is like, you know, it’s like bobbing and weaving, man. It’s like these buyers are bobbing and weaving, trying to make a decision. It’s like, just pull the trigger. Because I think the longer you wait, you know, it’s just, you know, the more chance another buyer comes in and then they lose all that leverage. You know, it’s like, just make the offer. Let’s go. Let’s do this.

Jarod Evenson

11:03

Yeah, and we’re not quite to that point like in that same respect. And this is maybe a little off topic, or cutting you off, my bad, but, but only because I noticed this last night. I saw a couple Realtors posting on Facebook about how they had some appraisals come in a little bit low. So we’re not to that point yet to where the market can support, you know, offers way over asking price, if the house is priced where it should be, like we were four years ago. But we’re getting to that point to where it’s really, really hard to ask for, you know, ask for the world like we could six months ago as a buyer, it’s getting level playing field for buyers and sellers. You still, you know, buyers are still getting concessions, I think, in a lot of cases.

Jacob Davis

11:49

But, yeah, I think, I think that leverage for buyers is going to go away. We’ve got so we’re at 98 homes on the market in Pullman. So that’s quite that’s still a lot. But, I mean, we were at 100 now we’re back at 98 so I think leverage is going down for buyers daily, is what I think. And I think there’s renewed interest in Pullman and the Cougs. It felt for like a while, there was a lot of negative energy around Pullman. WSU, now it’s like, Hey, we’re three.

Jarod Evenson

12:34

No, we got a conference. We almost have a full conference.

Jacob Davis

12:37

We got a conference. We beat the Huskies. So, you know, I think today’s game against San Jose State is a huge game. They’ve got some good players. So if we could, you know, continue four. No, I think real estate is very it’s tied a lot to sports here. I know some people would disagree, but I think when the kids are winning, buyers are like, let’s go, you know. So I’m always pulling for the kids, because I think it benefits our real estate market.

Jarod Evenson

13:17

I read an article this morning. It was talking about Pullman WSU, Pullman, that first year enrollment numbers are actually up. Been kind of trending up year over year. You know, COVID obviously put a corkscrew and everything, but still trending up, which is huge for Pullman as well.

Jacob Davis

13:37

So, yeah, so, so I showed a house on College Hill last week to a group of sorry girls. And I was asking them, you know, two of them were from California, five of them were from Western Washington. And I was just, it’s kind of research, you know, I’m like asking them, if like, with the pack two, and this was before they announced, this was before the Husky game, and before they announced the the teams coming. You know, I was like, Are you guys with all the, you know, the pack two, pack 12 thing. Does that discourage you to, you know, from coming to WSU, is, is there still that like, interest in coming to Pullman? And they were like, they didn’t really. I mean, they they said, not really. I mean, it’s like, we still, like a lot of these kids are coming because their parents, their aunts and uncles, came to Pullman. I mean, it’s like, a a legacy thing, I guess, I don’t know if that’s the right term. Good turn. It’s like, and, you know, I went to, I went WSU, I got a bunch of friends that went to WSU. And it’s like, that’s what P. Will do, you know, it’s, I mean, it’s, it’s probably one of the best college experiences, I think, like, hands down, like no comparison. I think for people, for people that want to go to school, live in a college town. I mean, the whole town revolves around good sports, or, well, WSU, and then sports, and it’s just, you know, it’s a, it’s an amazing experience to, I think, for people to go to school here. So anyways, I thought that was interesting that it really doesn’t matter, you know, we could be in the pack one. It could just be us, and people are still going to want to come to Pullman go to school, so, football game. So, so that’s, that’s, you know,

Jarod Evenson

15:50

that’s a loose tie in to real estate with WSU sports, right there.

Jacob Davis

15:56

But so, so, and I’m kind of, you know, I’m kind of mentioning that so, like, for investors, because I work with a lot of investors, and they’re just like, oh, what’s going to happen? Oh, should I invest in Pullman? Oh, it’s like, yes. And right now is a great time to buy, because there’s quite a few rental properties on College Hill around Pullman. You could buy something and actually be able to negotiate. There’s hardly ever been properties for selling College Hill in the past. Yeah, I noticed there’s, like a lot. And the problem is, with a lot of these College Hill rentals is they haven’t really been maintained, and so they just need a lot of work. But, you know, typically on College Hill, you can get 650 per bedroom a month or more, you know, like, I’ve got a property we’re getting, I think, 750 a bedroom, um, and so you could buy a College Hill rental get, let’s say, 707 50 a bedroom. And if it has seven bedrooms, I mean, you do the math, that’s that you can cover your mortgage, you know, with that in almost any case,

Jarod Evenson

17:13

yeah, no, that’s, that’s interesting,

Jacob Davis

17:17

that the issue is you’ve got to do, you got to be able to do the work. You know, that’s where a lot of buyers, a lot of buyers and investors just, you know, on turnkey it’s like, well, that doesn’t exist. What for? What you’re looking for, you don’t need to put the top end finishes in manure.

Jarod Evenson

17:31

The kids don’t care.

Jacob Davis

17:35

Yeah, exactly like, location is way more important on College Hill and Pullman than having quartz countertops. I was like, yeah, these kids are going to college. They don’t care.

Jarod Evenson

17:49

Yeah, no, exactly. That’s kind of cool. No, it’s that’s good to see. I’ve been seeing a lot of creative transactions being put together using different types of financing right now, whether it’s investors using non traditional type loans, or getting into the types of financing that we’re not Used to, I’m doing one right now that’s for a a non US citizen. They don’t have, like, a work visa or anything, so, you know, they don’t even have a social security number, but they own a restaurant, and we’re able to get them into a house using financing type that I’ve, you know, never really used before, but slam dunk, easy types of stuff. But like so lenders are hungry, I think, and they’re trying to help find ways to create more home buyers. And that’s what’s, I think, driving the market right now. I’m not just doing your vanilla loan types or but, you know, there’s, there’s a little twist to darn near everything I’m doing, which is awesome, or I’d say about half the stuff we’re doing. So it’s like one of those things, but that the real estate agents, I think, are driving those tougher transactions and making them happen. So it’s like kudos to to to the to the realtors of the world, the you know, the Jacob T Davis’s of America and and friends. But are you, are you finding that? Is it tougher deals? Are you seeing? Are we getting back towards your traditional 20% 3040, 50% down, conventional cash buyers. I feel like there’s less cash buyers right now, like they’ve all spent their money now, and we’re getting back people needing to finance.

Jacob Davis

19:49

I’m working with still quite a bit of traditional financing as well as cash. I’m not doing too many like create. Of financing deals myself. But yes, I’m very, I’m very, I have a lot of experience in that same stuff. My myself that way, so, but the buyers I’m working with, they all seem to kind of have their their house in order financially, I guess, and so, which is amazing, because it makes my life a lot easier when you know we can just use a 20% down loan. Yeah, before I forget, Jared Evanson, I had I so I met with a buyer yesterday and his wife, and so they might be the only fans that we actually we have. We have fans now. Can you believe it? We have more than you think I’ve had my man, Quincy, yeah, in his Oh, and his son, Zaza. I hope, I hope I said that properly, but I guess Zaza was watching our videos. So that’s cool. We got, we got a fan.

Jarod Evenson

21:10

We got, we got lots of fans. Man, that’s cool. No, I’ve had a handful of people surprise me and be like, Oh, we watched that. I’m like, Oh, I thought that. I thought we were just putting those out for us, because we like to talk,

Jacob Davis

21:24

just us, you know, hanging out on YouTube. Just yeah, breeze.

Jarod Evenson

21:29

There’s been a handful of people that actually have reached out and done applications or, you know, started the home buying process with it. So, you know, if there’s content or stuff people want to hear drop, drop us a message.

Jacob Davis

21:42

Yeah, it was up. Yeah. If you want to shout out, you know, let us know.

Jarod Evenson

21:47

We’ll give you birthday shout outs for $5

Jacob Davis

21:52

I’ve got a, I’ve got a electronic board on the highway here. I’ll do a shout out on the board. You know, it’s like, happy birthday, so and so.

Jarod Evenson

22:03

Yeah, dude, that’ll be fun. Oh no, it’s good, but, yeah, it’s and we gotta find our next guest too. Who we bringin on?

Jacob Davis

22:13

Yeah, I’m a tear or a Coug player, you know, or maybe, like Drew Bledsoe. Maybe

Jarod Evenson

22:21

I’ll call him. We had Jack. Jack was great, man. You know, you know who we might be able to we’ll find someone good, yeah, send us, send us your recommendations, and then, and then give us their cell phone number, yeah.

Jacob Davis

22:37

And we need some more subscribers, you know, like, we’re almost at 300 I think we should do like, a giveaway for whoever is number 300 you know, like, I’ll buy dinner at Black Cypress houses.

Jarod Evenson

22:54

Or do they have to you have to go? Do they have to go with you? Or do they get to take whoever they want?

Jacob Davis

23:00

I don’t think they want to go with me. But, yeah, yeah, black, I guess you know, if you’re out of the area, gives you a reason to come to Pullman too.

Jarod Evenson

23:11

So we, we, you did that open house bingo last week, and that was a hit, and we gave away that Black Cypress gift card for 100 bucks and a couple of Stanley mugs. Jordan got the host one of the houses. He had a blast.

Jacob Davis

23:27

People come out. I think we’ll do that again. Another Open House bingo. Yeah, it was you,

Jarod Evenson

23:36

open house poker. That’d be cool.

Jacob Davis

23:42

Yeah, we’ll have to figure that out. Heather, Heather Salteralla, she’s, she’s amazing at, like, putting that stuff together, so he’ll have to throw it out there. Cool.

Jarod Evenson

23:53

Alright, man.

Jacob Davis

23:54

Heather Salteralla, with Woodbridge real estate, she’s an amazing bingo master,

Jarod Evenson

23:59

huh? Bingo, Master, well,

Jacob Davis

24:03

she’s a great Moscow. So she lives in Moscow. So if you’re looking for an agent Moscow, she’s great over there. She also does Whitman County, yeah, like she’ll do, you know, she’ll work in both, both states. But anyways, well, so what time is kickoff is seven? 737?

Jarod Evenson

24:25

Yeah, I gotta start. I gotta start getting ready. I gotta find something to drink. But no, yeah, it’s still a ways away, little early for that seven o’clock San Jose State.

Jacob Davis

24:38

So I wanted to tell you I’ve been coaching flag football. Did I tell you that? Yeah, I heard that river. I’m coaching flag football, so I’ve got a game. We’re the Seahawks, so my flag football team, we’ve got a game 345 to probably about, you know, 445 we’re taking on the Panthers. Is we’re going to crash him. We’re going to crash him today.

Jarod Evenson

25:03

Are you going to dress like Pete Carroll? Have you shoot your bubble gum?

Jacob Davis

25:08

You should do that. I’m starting to get kind of the the Pete Carroll, you know, got the Pete Carroll dude going on?

Jarod Evenson

25:15

So sweet. Let’s do it well. Well, forget him. And isn’t his kid on the Husky coaching staff too, or something? His dad, Bella checks and God, they couldn’t stop showing him on the TV. But just goes to show we’re better. We out coach them. It was just going, oh, man,

Jacob Davis

25:36

100% anyways, well, thanks for joining again on another podcast, podcast slash YouTube video and until next time go Cougs go down.