every c-span fan and every purchas operations. scan the code or go to c-shop our fourth of july sale. >> c-span is your unfiltered 'rfunded by these television companies and more. including charter communications. >> charter is proud to be recognized as one of the best internet providers and we're just getting started. building 100,000 miles of new infrastructure to reach those who need it most. >> charterommunications supports c-span as a public seice along with these other levision providers. giving you a front row seat to democracy. "washington journal" continues. host: at our table this morning is lawrence yun of the national association of realtors here to

talk about the state of the housin u.s.. what are the big picture facto caller: -- guest: morning, thank you for having me. we have a bizarre housing market at the moment. home prices are at a high, making it very difficult for potential first-time buyers to enter the market. all-time high interest rates and a lack of inventory in the maplace,spec■0ially fofir mid -- midpriced andery . at the same time we are not getting the transactions. essentially at 30 year is trending a little bitelow that level. but home prices are at a record high. host: who should be buying? guest: o t americans believe in is the dream of over ship. 100 years ago, the middle class

and the working class didn't come anywhere was the middle-class and upper-class but once home rise, it was up to 66. it was the solid middle class, middleericowning a piece of america. right now i think thesp there, l capacity is very limitedof affot there. high mortgage rates■income growt well below the home price growth. host: about this headline from "the new york times," "a huge number of homeowners have mortgagee up. " guest: it's a restriction on potential first-time buyers and youngerns. they are frustrated. on the others, the peoplwh ownel

smiling. it's wonderful, low monthly payments. no lies. monthly payment isn't light -- isn'sihelove it. one trend we are beginnings we know the life changing circumstances like a death in thefamily. new child. people maybe they want to sws. maybe within the same house, a ng pattern. over time i think some people say i love the percentage but i have to give it up because i need a house. we are beginning to see more inventory now. 18% year ago. historically we are still low in terms of inventory. host: will ever see 3% interest rates again?

guest: i don't think so. th lockdown. massive stimulus with monetary policy, zero interest rate essentially led to mortgage rates going to took advantage o. people financed at those rates. those were special circumstanced today the mortgage rate is right around that level but compared to the recent past, it's much higher. host: how long does consumer to adjust to the idea that they are not going to see 3% again and that it is likely to hover around so, younow, thel reserve has indicated that the current monetary policy is restrictive. by saying that they are indicating iormeaning some norml

be arountesome delays might getd into next year. that could lead to mortgage s ining mewhat. not 3% or 4%, but maybe trending down as a possibility. americans needwhether 7%, markee rates were 16%. they said it was one of the best decisions ever and that they could always refinance down with interest rates declining apprecn that they could use when they tried to sell the home as a down payment on the next trade purchase. host: the appreciation percentage rate right now? guest: 5% compared to one year

ago. we sawase in 2020, 2 thousand 21, 20%, 25% in some markets. then there was another 10% increase. now it's 5% to 6%. but it is still a gain from the host:il consumerases in the■k see 20% appreciation rates ever again? guest: it' going to be a tough go. any people are tapped out periods first-time buyers cannot enter the market unless mortgage rate declines. once the homebuilders will takeantage of the low-cost borrowing to build more homes so the you will get more supply. effect, think that once the interest rate differential begins to narw, lie

circumstances have changed. they will need a different size or location and then we start to see more movement. have -- host:ng by homeowners. (202) 748-8003 for homeowners --(202) 748-8000 homeowners, (202) 748-8001 for tental (202) 748-8002. guest: is difficult. there is sentiment across the country control. i understand that sentiment, but it's a worse policy position because it would lead to lower maintenance of the property and deriorof property, less construction leading to housing. the weight on the rent s build . sometimes it may require tax incentives. the rentas b■pinterestingly, fo2

months, we are in july of 2024 compared to ju of last year, rent across america islightly down from one year ago. that is because we have new coming to the market. omaha, nebraska, they are building apartments. all of these new units coming onto the previous to construction surge, you had high demand and low supply of apartments, eroding the price of rent. guest: that's right. you think it will go down as long as construction continues? gu as long as construction continues. ilding future apartments,a about

which has me thinking that many ve■d are saying they cannot make the numbers work with theseh interest rates and they have the federal reserve with lower interest rates fee for putting more supply in the market. i hope we don't that for a couple of years when things start to aggressively rise becsef we need to build mo, ■■çneeds to be incentive to build more homes, so that's how situation.thesi host: let's see what our viewers t say. texas, good morning. caller: although i respect your guest, he's what has happened to the housing maet is that 51% of all housing inventory is being purchased by what are called thcrisis, whichhappened 10 year.

that's because they are allowed to then fleece the communities because , planned communities that are only. where people are looking for rent control, these apartments have been in existence for 20, 30 years, yet they want $750 a month for one bedroom160n inventory.and ck the inventory that is lacking is because most of the housing, especially starter homes, they are being purchased by corporate landlords and hedge fund accounts coming into these citi and purchasing properties and manufacturing a housing crisis. host:■w let me stick with that point. manufacturing a housing crisis. what is the crisis they are manufacturing? caller: they are buying 51% of all housing inventory. when a person enters the housing

market, there are a limited number of houses to and they have up to the numbers so high that m house and the people who can enter int bidding war. a bidding war for a house that wasoffer 25%, 30% over the just to get the offer approved. that leadso trice-down effect. other people see that as value d then the other houses in the area increase in. people who go to sell their homes, rightnot bu other homes because the interest rate is too high. the rich are manufacturing a housing crisis. host: in his words, the crisis is affordability. respond to the argument. certainly, the instutkkveor ago saw the housing shortage.

covid did a estimate anticipating that 5.5 million unitul be short in america. policy going through everything at the state and local, the federal level, to bring supply. herwise, there is an incentive of major institutional investore funds have wall street money to get into the mar we are also seeing in states they are trying to restrict institutional buying activity so these -- they do that certain interest deductions that the wall street companies are getting. we see some measures trying to li market. i'm hearing tstrati of realtors atlanta saying i am a first-time buyer. ■kwe have to diss incentivize tf

we have adequate supply there is no reason institutional investors would want to enter the market. host: is his theory right? guest: cthat in some markets, yes. houses are being gobbled up by buyers.tional investors that is frustrating. are they getting special benefit in terms of interest deduction? we provide more housing supply? that means institutional investorsuy they feel frustrated that he institutional investors leave the market host: is the situation crat bur?

guest: the bubble would be a case where there was artificial demand. we saw that and 2005 with those risky subprime with changing interest rate. buy a then it checks outerfortunatelye devastation of the subprime lending and the focrisis, polico america and we blend in with common sense? bill, ability to repay. borrow money if you can demonstrate the ability to repay. budget. foreclosure rates of all time in america. host: eric in las vegas, homeowner. and flow and we all know that.

in 2008 my wife and i lost everything. g ally well. people that went down. 2018 my wife a wck o our feet, we got into a wonderful home for $230,000. that home just appraised at $418,000. we have a pool in the backyard. long-haul truck driver. i have a 2.70 5% ies let go of .

i see people that are strungfor me life is good. he is in a very good market. las vegas, not o prices risen is strong which means it is almost a sure there wie region. look a conditions. in the areas where lar factories shuts down, we see a ds. we have 6 million more people working today compared to pre-covid highs. al9of the job creation is potential housing demand. iemp$anof affordability challenges in high mortgage rates. host: robert inrent, is that ri?

caller: that is correct. good morning. what i touch base on is i rent, i've printed from a years and t rented from a mom-and-pop for about 15 y everh money to buy our own home. the 15 years, the when they finally decided wethey have been doing this for four years, we are done, we will retire, they did the best they could but they did sell all of their properties to a corporation and that corporation corporation. i would say is b starting on his own. when he bought it for the first year our rent stayed fine but

after that it doubled. our rent went up. everybody in the group that got sold to him, they all received notifications that the rent was going up because of interest and inflation. he was spreading the cost on to us. it worries me that for people $1000 for rent might be cheap in some areas but here in michigan that is pretty expensive, especially in rural areas. people in assisted living will have a hardway of having rent, t alone buying a home in the re that is all i have to say. i agree are you still there? caller: -- i ail host: you said this corporate apartment owner came in, doubled

t, and said it was because of inflation? is high, 9%, and he dos . lawrence, take those numbers. guest: in certainoc statistics. this is an■l example where king advantage of the housing shortage situation. the question is is offering the highest price? there making judgment onhat. the policy angle investors as interestucmost first-time buyere the retail is limited, they do not become mortgage interest deductions anymore. institutional investors they can

deduct interest. buyers? t rent control being an awful policy. tenants to live in a home? it is rental subesnce for people to go to grocery stores and provide food. rental subsidies is what we need for being able to hold rent. that is the policy. some states like ohio want to limit itucnce. michigan cal syracuse, new york.

brenda, you own a home there. caller: i took advantage of the subprime mortgagend bought a house for $68,000. itx bedrooms, 3200 square feet paid for. why would i sell? whwod move? syracusepa$40 ari can live on t? led daily from investors i tell them $1 million cash and they hang up on me. host:hat brenda. guest: upstate new york iof thes of the country. someone who may be pr o■x■v á+ boston situation of working from home, whether it is

a hybrid model or 100% remote and they unable to buy a home in new york city. customer service in rochester or other communities inew york, very affordable. even in syracuse she mentioned she bought for under $100,000, y prices have risen about $200,000. it is still a most affordable region of the country. in midwest america we are seeing more stability because it is very able. cincinnati, indianapolis, kansas city. other fast-growing areas like florida and we know how expensive californiaarut affordability. sometimes the job market dictates where they need to be. consider the next county or the other states. stym■ according to the national associative realtors, your

prediction for the market in the second half of 24 is rates predicted to remain above 6% -- mortgage ratescted to remain above 6% in 2025. median price inc. we did -- media to 400,000. home prices continue to rise. p with the numbers? guest: we looked at all of sales. mortgage numbers are a dominant driver. one ke move is we are beginning to see more inventory. changing life circumstances who conser we also have to consider 40%note mortgages.

move if the circumstances dictate. forecast , the federal reserve has indicatedrate cut this year. that is a change from what they said in december when they set about four rate cuts. they are holding back. whatever is being delayed i think willpl we see the inflation metrics decelerating. the inflation rate is approaching 2%. i rates later will drive the mortgage rateshat more. there is one big red flag. we have a massive federal budget deficit. the government is borrowing. that means there is less money av lending and that is one of the reasons consumers rate.

here it will settle down. host: michael ineawhat is your ? i live in a 680 square-foot apartment marketed as a one bedroom but it does not door. it is more like a tokyo style one bedroom with a sliding door. pay $3100 to live in the 98 116 area code ini worked in a mn the area. my salary do not keep up with the cost of living. my local state representative bill 21114d& legislature which did not pass. is b boomers that were fortunae

enough to buy a. host: what withhe do? caller: we have junk feissu■esw. my rent has increased on average of 12% to 13% a year. the housing bill is due improve housing stability forsubject tol landlord tenant act and manufactured mobile homes landlord act act -- landlord host: you are breaking up. i thin gt. that would be rent control. guest: one can see the sentiment arising but those sentiments are rising because of housing shortages. then the technology boom rr microsoft, amazon buying a■3 property and

californians getting priced out ofaliformong into the seattle region which pushed up the rising population. seattle did not do that and that is why there is a housing shortage. homes and stabilize the rent and in the short-term interim cde subss ller: k i wanted to comment -- host:. caller: i wanted to comment. my observation of the housing market is -- people with the money participating are the ones always winning and everybody else is losing. main mmenvironment that is paye

ultimate cost.i think everybodyt that phrase means. examples. theeveloped and after that happened no more■. frogs, o more butterflies, no more anything beaif that at even close to the same level. host: we understood your point. we will go to tony in north thank you for taking my call.this is a little bit of a different question. it has to do with -- there was some kind of lawsuit brought agair)ns■&ere people who were selling their homes were having to pay entire 6%, 3% rent to the buyers agent and 3% rent to the seller'sfrom what i understy

knows whguest: a lawsuit and there was a settlement. first of all, when we take surveys of recent home buyers which we've been doing consistently for the past 40 years, 9% of their realtors. excellentrecommend their friendr realtors. important of these servicetheirn it and they understand the science behind it and they treat them like extended family members. the lawsuit sentiment occurred. buyers -- in theñ. home. sometimes when the completion was, depending on the agency they worked with, they may even give a concession or maybe a commission rebate.

now from mid■é august it is possible the buyer will bet homy have additional money to get professional representation? someone may be unwilling to pay for thyegent. fiti great position. given the history of ameri, i just hope this does not impact vely for minority first-time buyers were first-generation buyers. they are just looking for the right home. now they have to consider whether they need to come up with additional fees, and without professional representation it would be taking advantage of by the home sellers and their agent.

so previously borthe lawsuit the seller could say what? guest:ete wision with my realtos about what the right percent based upon that the seller agent would get some amount andw the seller agent would break your buyers concluded, will pay the buyer agent a certain amount. from the buyers perspective they do not have to worry about what the buyer agent was gettingnow s to come up with their own money or go which means they are in a vulnerable situation of getting taken advantage of by the home sellers. an interesting dynamic. 's see how it plays out. from thes8 realtors, what i hear is they are entrepreneurs. some