Venture With Joe and Cody
Venture with Joe and Cody is a captivating journey into the lives and stories of business leaders, entrepreneurs, and pivotal community figures, revealing the essence of success through candid conversations. Tune in to discover the setbacks, triumphs, and invaluable lessons learned on the path to making a mark in the business world and beyond.
Venture With Joe and Cody
Lock Or Float
Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.
Mortgage rates don’t just “go up or down” in the background, they change how picky buyers get, how long listings sit, and how confident you feel writing an offer. We kick things off with some Friday Night Lights energy, then pivot hard into the housing and mortgage reality a lot of people are living right now: higher rates, slower decision-making, and a market that looks normal in the data but feels anything but normal day to day.
We dig into the latest mortgage rate trends and what’s moving them, from Freddie Mac’s weekly survey to the daily lock benchmarks, plus the impact of jobs reports, inflation, gas and diesel prices, and the next Federal Reserve decision. Then we talk boots-on-the-ground real estate: buyers who are willing to walk over one missing feature, sellers who feel stuck, and why “testing the market” with a high list price can lead to a long, painful string of price cuts.
The core deep dive is a clear, practical breakdown of locking versus floating your mortgage interest rate. We explain what a rate lock actually is, why it’s tied to a specific property, how 15-day vs 60-day locks affect cost, and how we guide clients who want updates while they float. If you’ve ever wondered why you can’t just relock every time rates dip, we cover that too, along with the mindset we use to reduce stress and keep deals moving toward the keys.
If you found this helpful, subscribe, share it with a friend who’s buying or selling, and leave a review so more people can find the show. What’s your move right now: locking early, floating for a better number, or waiting on the sidelines?
College Football And Rivalries
SPEAKER_00Hey guys, we're back with another episode of Venture with Joe and Cody. Focus, Cody. I'm here. I'm here. I'm ready. I'm Joe Skipper, uh, the owner of Skipper Realty Group Broker by AXP Realty, and that is Cody Wilhelm to my left. Maybe you're right. I don't know. Um, with residential borders. What's going on, my man? How are you doing, man? Good. We are excited. We had our live stream and um live stream on Friday Night Lights. And we were talking about college football. Super excited. Right? Does it get any better than that? Uh next week is NFL, correct? I think next week starts NFL. Yeah. Yeah, this week is like college football every day. Yes, it's crazy and fun, and I can't wait. Um the your friends, the Ducks, are playing Boise State on Saturday. Yep. At the Broncos. My friends, the Beavers, are playing Houston. So yeah. We're gonna see how all that goes. Um the is is Boise State traditionally is pretty good, but you know, Oregon's obviously a really good team. Are you are we are they thinking this is gonna be just a blowout, or what's the what's the predictions here?
SPEAKER_01I think so. I mean it's like a I think Oregon's favored by 24 points, so I don't think the expectation is that it's gonna be uh close, but for some reason at Modson, right? Yeah, yeah. But like two years ago, Boise State almost beat Oregon. Yeah. And they just for some reason they don't they don't match up well with Boise State. I don't know what it is, but they they don't have a good history. So as much as it feels like they should be able to go in there and just take care of business, I it's yet to be Yeah, you gotta be convinced.
SPEAKER_00You know, and that's the kind of the cool thing about college football is you just don't have any you know, you have to be careful, right? Like you don't know who's gonna who's gonna come out that day and win, but I I think that it's just a little too much in Austin to or Austin Austin. Um I'm thinking I'm looking at Texas, but um Oh yeah, yeah, I was like it's a little too much, I think, for anyone to handle it there. Like you've got to be a really good team and and deal with deal with what comes with Austin Stadium.
SPEAKER_01So yeah, I'm a little nervous because I've I've been hearing more and more um over especially over the last couple weeks, months, talk about Oregon, how how great they could be, and how all this, and I'm like, I don't like hearing that. I don't like hearing it one bit. As much as I love to hear it, I don't want to hear it because then it feels like, well, if we don't win it this year, then when are we ever going to win?
SPEAKER_00Yeah, and it's and I think it's just because that they've always been out of reach by one or two games, you know, and so yeah, it's like everyone's there on the radar every year. So ripping our heart out. Man, I had such a hatred for the ducks, like a hatred, like a passion in the soul for them when I was in college. Because that's just what's built into you. Oregon hated Oregon State, Oregon State hated Oregon. I think part of it, I'm old and don't care as much. Um I think the other thing is when the Pac-12 kind of disassembled, it was like, ee, it the rivalry's done. You know, it's no longer, it's no longer there. So yeah. Um, I though I don't, I don't want to say this, though I don't want the ducks to win a championship. Uh that's fair. I think that's how most people rooting against them necessarily. I know my beaver fans are gonna be like, you a hole. Right. Um, but I guess I just don't, yeah.
SPEAKER_01I care less and less, but maybe that that's that's definitely, you know, I I feel that way too. I although I never, you know, I didn't go to Oregon, I didn't go to Oregon State, so I don't have like that built-in passion hatred from against the other, yeah. Yeah, and you know, where we grew up, I feel like I I had more friends that went to Oregon State than Oregon.
SPEAKER_00Yeah.
SPEAKER_01So I, you know, I probably still to this day have gone to more beaver games than I have duck games just because knowing people and and going there and hanging out, but I've never really had a uh a big Oregon State hatred. Um I I will never like the Huskies, but outside of that, I'm like I think that's the mutual thing that Oregon and Oregon State have is they don't no one likes the Huskies.
SPEAKER_02Nobody likes the Huskies.
SPEAKER_00I I haven't really heard the you know I haven't really heard the reasoning behind it. I was in or at Oregon State and we hated him, but it was like you were just raised to do it. It was like almost a kid you're just taught to hate them. And you didn't have to have a reason, you're just like I hate him. Like you hate him, I hate him, we're good.
SPEAKER_01Like yes.
SPEAKER_00Uh so we always always go for the cougars, you know, when they're playing, and you know anyone who plays them.
SPEAKER_01Which, you know, they play, I think they play on Sunday, which is really weird. Or maybe it's the next week. Yeah, the coup the Apple cop is is like week one or week two. Really? Which is really odd. Yeah.
SPEAKER_00Really weird. Oh, yeah, you're right. It is. It's a one on Sunday. Yeah, super strange. Yeah, that's interesting.
SPEAKER_01How do you have a rivalry what used to be a rivalry game?
SPEAKER_00And you have it unfortunately it's not first week. No, it's not anymore. And they they tried to hold on to Oregon, Oregon State, and it's like it's just not, you know. Um it's just different. No one cares as much. No, it's just not a thing. Um it when you're not in the same league and it what didn't have any mat it, you know. There were times that it didn't matter, you know, who won. Oregon was going where in Oregon State, but there were definitely some years that were like, this will determine the Civil War will determine what you know, yeah, if Oregon goes to the championship or if you know Oregon State goes to a bowl game or whatever that may be. So yeah, it's just over now. It sucks.
SPEAKER_01I know. Yeah, that end of season two game where it's like you you might count one team out and it turns in to be a close game, or like you said, there was you know, the winner goes to the Rose Bowl, or for sure, whatever. It's it added that extra layer to it, and you just never knew what was gonna happen, especially when you go into Reese Stadium where it's like that's they were the for a while there, it was the giant killers. So it's like, man, you don't want to go in there when you think you got something figured out.
SPEAKER_00Yeah, it was fun, it was fun. Yeah, but anyways, that's exciting. We've got that going on. Uh, we're headed to Sun River um this weekend uh for for the long weekend. Well, not long weekend because I work Monday, but um, but yeah, we're going over there. Get a couple days out there. Yes, for nice, so it'll be fun. Nice. So, anyways, let's get down
Mortgage Rate Snapshot And Fed Watch
SPEAKER_00to business, man. Let's get down to business. Let's start with Cody's stats and trends today. What do we got going on in the mortgage world?
SPEAKER_01Yeah, so Freddie Mac's weekly survey is at 6.66% versus the daily lock benchmark at 6.78%, which is a one-year high. So when when we start to get into this environment of locking versus floating, uh and we'll we'll kind of deep dive into that a little bit more, that's where a lot of this stuff will really you can kind of nerd out a little bit more because if you start looking at at what the rates are and what the changes and trends and everything are, it's like, okay, cool, they went up you know, 0.18%, not that big of a deal. But yeah, we'll kind of deep dive into it a little bit more of you know what that means, not only for the for the rate, but just the cost for the rate. Um, but a lot of the numbers that they put out there, it's it's good information to have, but sometimes it's just numbers that kind of get get blurred in there. So yeah, um, you know, the jobs report came out today, which was a big I mean it was almost three times larger than what was expected. So we'll kind of see what that ends up doing for the the interest rates. Um and then next week we've got the Fed decision. Um which you know what that means is it's gonna be they're gonna get together and they're gonna determine whether or not they should keep rates the the way that they are, or raise them, or lower them. So right now, for a little while, it's been the expectation that they're just gonna kind of sit and wait. Inflation, because of the war over in Iran, has kind of driven up the cost in gas. You'll see that obviously, anybody that's driving on a gas vehicle. I just drove by a gas station the other day, not the greatest gas location. You know, when you're close to the freeway, it's like it's always more expensive, but it was like $750 for diesel. Yeah, I'm like, holy smokes. Yeah, I'm not going there for diesel.
SPEAKER_00I have had, I've had, we've I've got an electric vehicle, no big deal, not bragging. Right. Um, so I have not even looked at it. I haven't even looked at it. I don't even know.
SPEAKER_01Yeah, gas was. I mean, I got it at Costco the other day and it was $469 or something like that. And everywhere else I'm seeing is like like cheapest $480, $490. Wow. And then you go to, you know, your your more expensive places, it's five and a half, close to six dollars. So um, that's obviously driving up everything, right? The cost of fuel. I saw I saw a little snippet um just yesterday that said that diesel in America is I I I probably should have like that. I think it was the most expensive it's ever been.
SPEAKER_00You're like, uh well, you know what's funny as you say that is Trump says that about everything. So you could honestly do you could be like, it's the bit, it's the it's the most expensive it's ever been. And someone's like, no, no, it's not. You're like, No, it's not. What are you talking about?
SPEAKER_01It's either the most expensive that it's ever been, or it is the most expensive that it's been since 2022, which was the previous high. So we're sitting in a spot which you know, everything that is delivered to stores, restaurants, wherever it's not. It all affects everything. It's you're using diesel. Yeah. So yeah, all that to say that continues to drive up the rates and inflation. So it'll be interesting to see what the Fed ends up doing. Um but I don't know, like what uh what are you seeing? Because the mortgage side, I feel like it's it kind of just stays in this little bumper lane week to week. There's not there's little changes, it has nothing crazy. Yeah, like from the market side, like the housing market side is are similar. What are you seeing?
Why Buyers Are So Picky Now
SPEAKER_00Well, we're seeing nothing crazy to report. It's kind of boring because probably if people hear our stuff or actually faithful listeners to us, they're hearing the same topic every single time. Because even in the real estate world, it's not like anything is you know drastically changing here and there. Um, for a while now we've seen buyers come back into the market and buyers are in the market right now. They're just sitting there. I picture them like sitting like in the shadows, like not creeper shadows, but like they're just there and they're like they're working, but they're not like they're they're waiting for that right home. They're in the and when when I talk about the right home, it's like they have to that home has to fit all of their needs. They're walking through every single place, being like, this checks off, and they're checking boxes, like it does this, does this, does this, and if it doesn't do this, see ya. We're we're going back into the shadows and we're gonna wait and we're gonna sit in our home or we're gonna rent for a little bit longer because they don't have any rush. Um, we always have buyers that are like, they're always like a small group that's like, we've got to buy, like we moved here, we don't want to rent, we don't want to do this, or our rent's up, and we want them wanna buy. Those are the ones that still are in that, like, okay, it fits most of what we need. Go. But the people that are like patient, which we're seeing more and more as buyers, are just sitting there and they're waiting for that perfect home to come along. And I'm not knocking them for it at all, it's just that's the market. Sure. And the frustrating part on the flip side to sellers is we've had lots of beautiful homes that we have listed, and they don't go um right away because they're missing, you know. I'm trying to think of things like, you know, missing an extra bedroom or missing, you know, we wanted a bathtub in versus a walk-in shower. Like we've had those sort of things. Like, great house has a bath, it doesn't have a bathtub. We need a bathtub for it. And like, are you kidding me? You know, but that's what that's the detail that we're seeing. And so it's very frustrating for sellers because they're like, what's wrong with my house? And it's like, there's nothing wrong with your house. We need the buyer that like needs uh your house and your house particularly. So there's just a lot more specificity going on in the buyer's side of things, a lot more patience on the buyer's side of things. What that does to the seller side of the market is more inventory comes on the market, that inventory sits for longer, and you know, I I haven't seen this all depends on your area. I haven't seen home prices like go down. Like we're still seeing a list price ratio. I think the lowest we just saw on a listing we just uh or a listing appointment we just went on was like though homes in that area were selling for 95% sales to list price. So meaning that the home price had to drop 5% uh to get it sold. Um that's like the largest we've seen recently of of of when we did market analysis um for the homes that we look at and the homes that we're selling.
SPEAKER_01Okay.
SPEAKER_00Most are 98, 99. I think Wilsonville's staying in the 99%, you know, list sales to list price. So we're not seeing, we're seeing indicators of a buyer's market, but we're seeing the prices stay the same. So it's like you hear these people say balanced normalization, and I do think that's right, is it's it's it's normalizing in the sense of if we saw the time on market inventory increase and prices drop by 10%, then we're seeing some trouble here. Like there's you know, things are significantly happening um that's affecting the market. We're not seeing that one uh data point change too much, the price, the sales price. So um people are, I think, being more realistic, which is good. So we're not coming in, you know, a lot of good agents are telling their sellers this is not the time to test the market. It is the worst time to be testing on the high end of the market and say, let's just see what happens because buyers will see they'll they'll just poo-poo yours away and then they'll never come back to it, or they'll wait six months, seven months, eight months, and then they'll be like, now we're gonna offer you what you should have listed it for. Sure. Yeah. So um we kind of advise clients and sellers to, you know, you don't want that death by a thousand cuts of like, let's test the high market, let's drop it, drop it, drop it, drop it. Then everyone's frustrated and everyone hates each other, and then it's just a not a good deal. The ones, the the clients that ultimately, and I say this not being rude, is the clients that listen to us when we tell them the market and what it's doing generally sell fast or faster because they're sure we know the market, listen to that, what the market's saying, and go for it. Whether it hurts initially and it hurts your heart because you don't you wanted more money for it, um buyers are just really every house is unique and that's cool, but you know what comes with that uniqueness is think about your uniqueness of your house and what a buyer won't like about it because of that. Yeah. Because the buyers that are patient are seeing the thing that you thought was really cool, or you know, the the unfinished space that you did XYZ on. Everyone's like, I don't want it. You know, that's cool that you have it. I don't want it, you know, and I'm house because of it. Um, but like you've we've talked about on the live stream, is like when rates drop, their pickiness ends, you know. So it's like it kind of they they're uh that relationship is there as rates go up, pickiness goes up, as rates go down, pickiness, they're like, dude, I I'm saving 700 bucks a month on my mortgage. I'll I'll take whatever you know this house has whatever, I'll take it, you know. I'll put in a new bathtub or I'll put in a new bathroom, like with their with the rates. So yeah, I think that the though the market is balanced, you know, I get a little hesitant when we talk when you see a lot of agents on social media just saying it's normal, it's normal, it's normal. And Christine and I indicate it's normal. Data is showing it's normal, but I don't know, makes me a little nervous. Like I I I think when everyone kind of does this, like the same that that buy the rate, date the rate, or buy either the home. I'm like, eh, I think it's overgeneralizing, it's over like, you know, and I think I said it at one point, but it was like I was when it was cool, it wasn't when I was like trying trendy, like I was in the front end. Yeah. Um, but the same sort of concept is like I just I think once agents all start kind of bantering the same thing or or echo with the same thing, I'm like, is there something different? Like I always think the opposite, you know, uh-huh of what's going on in the world. But I don't know if that's healthy or not, but I'm just like, uh, I always get skeptical when everyone's kind of everyone's in agreement, you know, like that this is.
SPEAKER_01Well, it makes you it starts to make you wonder of like, wait, is this like this this used to feel like it was my opinion, now it's feeling like it's everybody's opinion. Is this like we're all just trying to convince someone rather than sharing, like, hey, don't freak out. Yes, for sure, you know, buy focus on the house, not the rate and not the payment as long as you can, because that's going to change. But then after a while, yeah, you're like, why does this this feels like we're just trying to convince people into it as opposed to guiding them through it or like focusing on it?
SPEAKER_00You put it in a great way. That's exactly what I'm talking about. Is I hate putting a rosy color on something that doesn't need to have a rosy color on. I think people need to be given the honest facts of what's going on, and if that's bad, it's bad. Like, but if it's good, it's good. And I I do think the market is normal. Data suggests that it's normalizing. But when everyone kind of puts that sugar coating on it, I kind of hate it. Like sure. So I'm always looking for like, are they are are we accurate here or is there something something going on? So yeah, but yeah, it's it there's nothing to indicate like we've had a uh we've had homes that have sold in a week with multiple offers in this current market, and we've had homes that we were like, dude, this house is gonna sell so quick, and then it's still sitting with no you know, so it's it's just a really interesting, but it again, it's like people want very specific things when they have their list. So yeah, just yeah, it's an interesting, interesting market.
SPEAKER_01Yep. And if you have the time, you're you're gonna do you're gonna be able to be picky. Oh, absolutely. But I mean, we saw it at the beginning of the year when when rates started to really come down towards the end of last year, first part of this year. Yeah. Activity picked up big time noticeably, you know, over half a percent or so of rates coming down. So we're not talking about needing a point, a point and a half. We don't need to get back down to four percent for things to start really picking up and kind of going nuts. I think shoot, at this point, we've been sitting at s over six now for what four years. Yeah.
SPEAKER_00So if we see in a fives, like anything in five, yeah, I think things would go nuts again.
SPEAKER_01Like it will, it will turn, yes, it'll turn very quickly.
SPEAKER_00Yeah, yeah. So it'll be interesting. I think you know, we've talked about it before as Trump's, you know, got the new Fed chair in and people say, Oh, he's staying neutral and he's but I don't think Trump hires someone to be neutral and Trump wants rates down. Right. So uh we'll see how that goes. We'll see what he does. I don't think, you know, uh I don't think he can do anything, you know, too much. It's not like the feds dictate everything, but um I do think Trump put him in there for a reason, and you know Trump's you know what Trump wants, so and he wants rates to be lower. So we'll see kind of what what they start doing. I think the war, if that was concluded, I think that's gonna help a lot. Um big time if that happens. So yeah, there's a lot that could be happening in the next you know six months, you know, to see what could happen with rates, but you know, very unpredictable. And it's like, yeah, I don't think it's a bad market. It's just a slower in the sense I say slower in the sense of like not slower in the sense that there's not buyers, there's less sellers, it's just that everyone's kind of just on slow motion in in their trajectory. It's not necessarily that it's slow as to numbers, it's just slow as to progress, like getting through sales and purchases. So yeah, yeah, yeah. Nope, I agree.
Locking Versus Floating Explained
SPEAKER_00Like, let's get into um let's get into the deep dive with you. And and it goes into uh kind of what we're talking about rates. Um, a lot of people don't have no idea what you're talking about when you lock in or float or whatever. So maybe just kind of go over um one, what are those things when a buyer comes into you and says, What's my rate? Um, what are the options? What is floating a rate? What's locking in a rate? When can you do it? And then more specifically, like what are you suggesting now, like with this current trend in the market? Like, ooh, okay.
SPEAKER_01Well, it's a lot, it's a lot, yes.
SPEAKER_00Okay, start like I'm an idiot. I know it's hard to imagine. Start like Joe the Idiot. And like Cody, yes. What is like when what is my rate and what do I have to like? What is this floating we hear about in locking in? Yeah, yeah.
SPEAKER_01Okay. So your rate, like when somebody says, Hey, what are rates like, which is usually the the general question. Number one question, yeah. Yeah. I I there's two parts of me, one part that wants to just give a general ballpark, yeah, like what I do on here, you know, 6.74 is the national average, and then kind of explain that there's a lot of differences. Or other times I'll say, Well, what's what's your credit like? How much would you want to put down? Blah blah blah blah blah, right? Because that's ultimately what determines your rate. But like sometimes I don't want to just go into that with everybody. So um the what goes into your rate is you know your credit score, how much you're putting down, what loan program it is. Um sometimes your debt to income plays a part in that too. So when you lock your rate, that just means you're securing that rate with your property. So I can't lock in your rate until you're under contract on a home because the lock. Is actually locking to the property. It is not to you. Like if yeah, if you were to go in and get a car loan, they're going to tell you, okay, cool, you're good to go. Here's what your rate would be. Because it's really more for you. It's not like based on, hey, if if you go buy this car, I'm going to give you this rate. If you go buy this car, it's going to be something different. So lock. Yeah, locking in your interest rate is really locking in for that home. So you have to be under contract. So I can't get you pre-approved and say, hey, dude, rates are looking great right now. I'm just going to lock you in. And then whenever you find something, we'll just tie it in.
SPEAKER_00And it and that rate comes along with it. You know, yes. Um, but it's not, it's particular to a home under contract.
SPEAKER_01Yes. And and there are ways that you can do, especially in an increasing rate environment, you can do a like a long-term lock without being attached to a property, but it has an upfront cost to it. And then you have to, and then you do a float down, is what it's called. So you're essentially you're not buying the locking in the rate that you're at currently. You're buying something that's security that in case rates go higher than where they're at right now, then you've got that secured. So that's that's probably a different episode to kind of dive into that. And that's usually yeah, like back in 22, 23, when they started going up, they became more popular again because people were willing to do it because it's like we just saw rates go up half a percent. Yeah, let's not matter of a week. Yeah, yeah. Like we're trying to find a house and shop here. So you get yourself under contract. Now we start having the conversation. When do you lock? When do you lock in your interest rate that is going to secure that rate to your your payment? Um, and that is uh that's kind of a mixed bag of what is the market doing? How what do we see the the next few days, the next few weeks, how much time do we have? Because locks are typically done in 15, 30, 45, 60, 15-day increments for your lock. And the longer you lock out, the the more expensive that is going to be, right? Because you're securing, call it 6.75.
SPEAKER_00Yeah.
SPEAKER_01If I locked you in at 6.75 on a 15-day versus a seven, a 60 day, it's going to be more expensive to get that 60 day because you're guaranteeing that rate for a duration of 60 days. Yeah. Yeah. Like the market could go bonkers and that, yeah. You know, that might be a huge cost for somebody else later. So a lot of it comes into what's the market doing? Do you, as the buyer, do you like the idea of kind of seeing what the market does over the next few days, next week, two weeks, or do you want to just secure this and lock it in and be done with it? We don't have to think about it.
unknownYeah.
SPEAKER_01And I think that there are there are multiple ways to go about it. I, for the longest time, was known as the the the floater, like that, because floating rates, yeah, floating rates when when it's a boring market, you can tend to get better interest rates and lower cost for those. Because, like I said, a 15-day lock versus a 30-day lock versus a 45-day lock, you can get it cheaper by just going with a 15-day. So I tend to do that because I most of the time I could get people uh either a better interest rate or a lower cost for that rate.
SPEAKER_00Okay.
SPEAKER_01Over the last handful of years, that has not worked at all. So I'm I'm much more firm on I think we should lock in unless you're unless you're a person that wants to to check things out. Because as much as we'll see improvement for for a week and a half, and it's like, wow, maybe we're finally going to get there. It's one day and that's all gone. And you wait and wait, and it's like, shoot, we should have locked it in. We should have just taken care of things. So my advice in this market where things are just very unpredictable, and you know, it could be something that somebody says or suggests that's you know, president or somebody, and it's like boom, yeah, it changes. Poof, all this is gone. So yeah, locking in, I think, is really important when the market is is moving a lot or has a lot of volatility. If things when it when we if we ever get back to an eventual spot where it's like boring rate market, nothing's really changing, everybody's happy, it's safe, it's secure. I love floating it because you can start to you can get those little wins here and there, and the risk is so much lower.
SPEAKER_00But okay. Is it when what timeline do they have to lock in a rate? So if they're under contract, they got a 30-day close. Is there a timeline that they have to lock it in?
SPEAKER_01Yeah, I mean, they want to lock it in, I would say preferably at least a week before closing. Okay. Because we have to get the closing disclosure out, um, and that has to we have to be locked for that underwriting. For them to do the final sign-off, we have to be locked. So typically, I mean, if you really needed it, you've probably because an average transaction timeline is usually about 30 days. So call it 21 days, three weeks worth of time to really be able to analyze and see what's going on. And usually by that time, I feel like usually within a week, maybe two weeks, it's pretty clear on whether or not, yeah, you know, we should have locked earlier, or like, hey, we're we've had we've had six or seven solid days. I think we might want to look at locking this because tomorrow, who knows what what we're gonna see. So yeah, a couple weeks we're gonna do that.
SPEAKER_00If they're like, hey, we want to float, because right now you're suggesting in this current market that you generally say lock it in because we're just not not gonna see a ton, you know, go up or go down necessarily, but potential for going up, you know, depending on what's going on in the economy and things like that. Yeah. Um do you, if they're like, hey, we just want to float it, see what happens, do you regularly just update them or is it on them to kind of look at what the rates are doing, or what how do you how do you kind of advise a client as they go through forward, you know, on that if they're floating?
SPEAKER_01Sure. So I tip I will have the conversation with them about locking or floating. Yeah. And if they say that they would like to just let's just keep an eye on it and see what happens. I'll usually ask, like, do you want do you want to be involved in this process or do you want me just to do it? And when I see the right number, we lock it in. And some people will say, Well, it'd be nice to know you know what they're doing. Can you send me an update tomorrow morning and let me know, you know, what's changed? Um, so every once in a while I'll I'll get that where they really want to know and they want to be involved. And then other times, which is the majority, it's typically like, no, I don't really, I just trust what you're yeah, what you're gonna do. Like if you're telling me that you can get this, and I'll tell them too, like, I what we sent you, I will get you. My goal is to try to get you something better. So if it looks like what we've got is going out of reach, I'm gonna just lock it in. But if we can hit three or four days in a row where it gets better, then I'm gonna lock it in at that point. So they have that insurance policy, if you will, of all right, well, the numbers that we've got now, it's not gonna get worse, and and you're gonna try to get us better. And sometimes it's one day, and I'm like, we're locking because this is going the wrong way, and I don't want to lose all this. So uh some people are interested for sure. Um, but for the most part, I I think that there's a lot of people that that's just one more thing for them to have to worry about and stress about, and if they can just know like that's taken care of, you do your thing. This is what you're supposed to do. So just as long as you can do what you say you're gonna do, then we're good. We're good with it. Do your thing.
SPEAKER_00So it's interesting. I and this is a dumb question, and but I think a lot of buyers would have it. Um, and I don't know the answer, to be honest with you, is what what's why what's the prevention of saying, okay, lock it in at 6.5, oh, it went down to 6.4, relock it, relock it in. Like, is it all based on money? Obviously, it's based on money, but it's like you know, where who does this benefit when you lock it in? Like, what's the reason for saying we have to lock it in now? We're just stuck.
SPEAKER_01Yeah, it's and I don't know the official answer, but I know that it it has to do with the cost of when when we lock that in, you're securing that interest rate and that cost in the market in that point in time. So for them to them as the like the mortgage investor, yeah, lender, whoever it's you know, the money is tied to. Yeah, I don't think I think that there is a cost for them to cancel that lock. Okay. And send it back out. Cause I think you're kind of like you're purchasing, it's like you're purchasing that rate. Okay. And if it doesn't go through, then you lose money. I figured out.
SPEAKER_00I just was like, why what's the big deal? Just cancel like cancel and relock. But I I know that would cost money, but I'm like, I also like, okay, how yeah.
SPEAKER_01Yeah. And it's either a big enough cost that they say that nobody ever does it, yeah. Or they're there's just the reality where they're like, look, we can't do this because people are gonna lock and relock 20 times throughout the process. So which it would be nice. I feel like, and they do have a a bit of a threshold too. Like if the rates go down enough during your transaction, the time that you locked, which is yeah, it's usually like a quarter of a percent or half a percent, then they will do a relock, but you still have to you still have to pay for that relock and everything. So it's not like you just get to kind of go right back into the market. You have the opportunity to get that lower rate. So it's uh it's it's a weird thing, but I think that overall it's it makes it to where it's you're you're getting your rate for that little moment in time, which for better or worse, you know. Yeah, it's just it's it's the commitment, and I think it it does help with like okay, let's lock in, let's just move on. Yeah, because yeah, part of the time, you know, payment is huge and important, and rate is huge and important, but sometimes I think there there gets to be such an emphasis on it that like okay, the eighth of a percent indifference really doesn't change a whole lot. Let's not stress too much about it, let's just secure this, move on, let's get you through, let's get you get you the keys.
SPEAKER_00Yeah, okay. No, well, cool, man.
Quick Wrap And Buyer Advice
SPEAKER_00That was good. That was interesting for me too, because you know, we're in the world, but we don't I don't dive in as much as you do, so it was interesting to hear that. So hopefully buyers out there that are uh confused about how all that stuff works can get some good info on that. Yeah, yeah. Lock them if you got them. That's it for me, man. Um if you guys have any need any help, like Cody's always there to answer questions. He's non-salesy like me. So you don't have to feel like he's gonna pressure you to do anything. I can't sell. Same with me. I'm fine with just answering questions. I'm not we didn't build our business off of being too salesy, so we're good to answer any questions. This market's tough. Don't go with your your brother's cousin's uncle that sold one house yesterday and feels good about it. This is the time to get with people that know what they're talking about and what they're doing. So no offense to the brothers, cousin's uncle, you know. Yeah, probably a very nice person, but um you probably want someone with more experience in this market.
SPEAKER_01So yeah, we we kind of this is kind of our, you know, this is what we do all day, every day.
SPEAKER_00Yeah, kind of our thing. You don't have a podcast just for a hobby, you know, where it's a thing. No. This is this is a passion. Okay, man. Well, have a good week. Uh thanks for meeting up and uh until next time. We'll talk soon. Yeah.
SPEAKER_01Enjoy Sun River.
SPEAKER_00Okay, thanks, man. See ya. All right, see you later.