[00:02] still expensive. The housing market has not crashed. Housing affordability remains depressed. And now they're talking about creating 1 million Trump homes to solve the problem. In today's video, I want to give you a housing
[00:14] market updates. And you know what? I think the best place to begin the looking at the median price of a home in the United States of America. And this is a five-year chart. And I want to ask you an honest question.
[00:27] Does this look like a housing market crash to you? And the Okay, there's actually a correct answer. The correct answer is no. It's not subjective. The answer is no. There's no housing market crash and homes remain unaffordable.
[00:42] housing market crash for the past 5 years. And I mean, come on, we're in 2026 now. You know, two years ago, many people are like, "Oh, you just wait, Brian. You're going to see." A year ago, people are I mean, there are still a few
[00:55] holdouts and some people were like, "You should just still wait, Brian. You're gonna see a housing market crash." But now, it is silence. It is obvious that the crash callers were wrong. Home prices are actually up 1.1%
[01:10] compared to 12 months ago. So, I wouldn't call that a crash. Now, I want you to take a look at this. This is the National Association of Realtors Housing Affordability Index. And here's how you read this. At the 100 level, that means
[01:26] a median income family can afford a medianpriced home. If it's well above medianpriced home. If it's well above 100, like here back in 2019 2020, when 100, like here back in 2019 2020, when the reading was 160 170, that signifies
[01:41] the reading was 160 170, that signifies that housing was comfortably affordable. where it's been over the past four years. We're right at the threshold near 100. Many times over the past four years, we dip below 100, meaning that
[01:56] the median income American could not afford a medianriced home. And listen, afford a medianriced home. And listen, we are barely over 100 right now. And just because it's over 100, it doesn't mean that we're doing great. You know, I
[02:09] would say that's like equivalent to your child getting a D minus on their exam. And you know, it's nothing to celebrate. Like you're not going to say, "Oh, technically they didn't fail. It's better than an F." No, it's it's still a
[02:23] bad situation, at least in my opinion. And this chart, it only takes us back to And this chart, it only takes us back to 2019. So, how was it before 2019? Now, this chart takes us back to 2013. The index was above 200 in 2013, and
[02:39] leading up to the pandemic, housing was affordable, but now it's not. And anyone that bought their home before the pandemic, you know, they were they were fortunate and they know that. Now, a very good question is how do we get
[02:53] housing more affordable? And I would say one way to do it is to have or to allow a housing market crash because that way home prices plummet. They become cheaper and more people can buy a home, right? But I just want you to know that
[03:07] President Trump does not want that to happen. He doesn't want a housing market crash. And how do I know? It's because that's what he said. He said that he So, I just want you to know that President Trump said that he wants home
[03:21] prices to stay high. He said that at a cabinet meeting and he also said that in his speech at Davos. President Trump said, and I quote, "I don't want to drive housing prices down. I want to drive housing prices up for people that
[03:36] assured that that's what's going to happen. Okay. If President Trump's going to do everything he can, everything in his power to keep home prices high, then how will homes become more affordable for Americans?
[03:50] Now, President Trump is saying that he wants home builders to build more homes. administration is now working with now submitting their proposals to President Trump. And one of the
[04:03] proposals is to build 1 million Trump homes. Now under the plan, private investors would fund the homes and then if you rent the home, the monthly rental payments over 3 years would be applied towards a down payments. So what we're
[04:19] essentially talking about is like a rentto own type of program or situation. However, the investors are asking for mortgage guarantees from federally controlled Fanny May and Freddy Mack. Currently, this is one of various
[04:34] proposals that are under review. Listen, I don't know what's going to happen, but all I can tell you with certainty is that President Trump and his real estate money from whatever they scheme up. Like, I see all the angles here. But
[04:48] some people may respond with, "But Brian, like it's going to be worth it. People, Americans will have homes." And I'll just tell you, like, no. Once the government gets involved, they're just going to screw it up. Like, setbacks,
[05:00] overbudget, subpar homes. Like, you don't even have to use your imagination here. Listen, I have another question for you. Do you know why this happened? of situation? Why is housing affordability so unaffordable?
[05:15] It's because of the Federal Reserve and all the money printing. It's not like everyone received an equal share of the printed money. It was disproportionately distributed and the wealth gap increased. It's the inflation. It's the
[05:29] financial asset inflation that screwed over the median income family in the want to blame anyone, I'm telling you, it's the Federal Reserve working in governments. Okay, now I want to cover this with you. Why does President Trump
[05:44] want to keep home prices high? Okay, first of all, many people may say or think, well, President Trump does not control home prices. but the Federal Reserve can just print money and flood the system with
[05:58] liquidity and keep home prices high. And took control of the Federal Reserve by having his guy Kevin Walsh as a new going to become the Federal Reserve chair in May. Okay, going back to the
[06:13] to keep home prices high? And I'd say for two reasons. The first reason is if you have a housing market crash, then the Republicans are going to lose votes. The average American, just think about it, they would be very upset if their
[06:28] it, they would be very upset if their home value fell by 20%, by 30%. And the average American has no idea about the Federal Reserve and they they have to blame someone and they would blame President Trump and the
[06:40] Republicans, those that are in power and they would lose votes. Now the second reason is that if there's a housing market crash then we would have a recession and the US government literally cannot afford a recession
[06:54] because if you have a recession tax revenue would fall and then debt to GDP would shoot up and then we would have trouble in the bond markets which means that the government would have a much more difficult time borrowing money and
[07:08] then the dollar would get crushed. Listen, I do not know what President Trump's going to do or what housing plan that he's going to favor. However, President Trump is already making moves. We discussed in January how President
[07:22] Trump ordered Fanny May and Freddy Mack to buy $200 billion in mortgage bonds to lower mortgage interest rates. So, here's what President Trump posted on January 8th this year. Fanny May and Freddy Mack have $200 billion in cash.
[07:37] Because of this, I am instructing my representatives to buy $200 billion in mortgage bonds. And mortgage interest rates did react because if you buy mortgage bonds, then the bond price is going to go up and the interest rates is
[07:51] going to come down. There's an inverse relationship. So, I want to show you, rate on a 30-year fixed mortgage, and this is a 5-year chart. It was in a 3% range up until 2022 and then it it peaked just under 8% in 2023 and right
[08:09] peaked just under 8% in 2023 and right now the average 30-year fixed is at 6%. So the interest rate has been drifting down since the peak and we've seen a steady decline over the past 12 months. But the $200 billion of mortgage bond
[08:23] buying has not been enough to make a drastic change because you have to remember that the mortgage back security market is a 12 trillion market. So yes, $200 billion is a lot and I'm sure that's been helping, but it's not been
[08:37] enough to move the needle in a significant way. So listen, that's the situation. I don't know exactly or what specific plan that President Trump's going to go with, but all I know is that Fanny May and Freddy Mack are going to
[08:49] be involved. like guarantees are going to be given so that investors stay protected. I'm sure that there's going to be many bad deals involved. You know, great deals for them, but bad for the American taxpayer.
[09:01] until then, housing affordability remains unaffordable. So, let me know know the situation. At least you know what's going on. Please subscribe. Thank
[09:13] you for the support and wish you a very nice day. Take care.