Understanding Inflation and Its Impact on the Mortgage Industry

Mike Mills (Host) | 00:00:13 to 00:00:28

Hello. Hello, everybody. Or zero people, whoever's watching right now. My name is Mike Mills, and I'm a mortgage banker here in the DFW area. And my team and I focus on helping local agents grow their this by providing insight to all aspects of real estate.

Mike Mills (Host) | 00:00:28 to 00:01:10

We can show you how to better market yourself, provide referrals, great referrals, to real estate related vendors in the area that take amazing care of your clients and provide some simple tips and tricks to streamline your business so you can help get more buyers and sellers. So if you'd like to have a conversation about your business or what we can do to help, please don't hesitate to reach out. And, of course, if you have any buyers need to get pre approved to purchase a house, we'd love to take care of them as well. So today on the this is my 43rd episode of the Texas Real Estate and Finance podcast, I am very happy to welcome one of my really good friends from White House, Tennessee, and fellow branch manager here at Verity Mortgage, mr. Donnie Eden.

Donnie Eden (Guest) | 00:01:15 to 00:01:25

See, there's so much production value here, buddy. So much production value. What's up? How you doing? I've never gotten that big of an applause when I came on board, so why not?

Mike Mills (Host) | 00:01:25 to 00:01:34

You should. I mean, you're a very important person. I told you earlier, I'm wearing my Def leopard shirt. I don't have a Motley crue shirt. I'm sorry.

Donnie Eden (Guest) | 00:01:35 to 00:01:51

That's maybe one you're going to have to buy for me, but this is the close to my 80s hairband rock I could get for you. I would take kiss. My two big ones was Kiss and Molly Crue. I was 100%. My wife was a big Kiss fan, which is OD, I don't know very many.

Mike Mills (Host) | 00:01:51 to 00:02:05

Gene Simmons. It's Gene Simmons everybody Loves So I want to start with asking you about your Vauls, your Tennessee Volunteers. They're in the suite 16. How are you feeling, buddy? No doubt out of the whole state of Texas.

Mike Mills (Host) | 00:02:05 to 00:02:21

Is there any teams still in the suite 16 in Texas? I have no clue, because I don't pay attention to college basketball. What did Darth Vader do last night for dinner? I bet you know that. Well, Darth Vader is dead, sir, so he's not doing anything.

Donnie Eden (Guest) | 00:02:21 to 00:02:47

But I don't have anything against college basketball. It's just you pick and choose your battles, right? I'm usually at a practice five nights a week and at a volleyball or a baseball tournament. And in my younger years, when I wasn't chasing my children around all the time, then I certainly was a little bit more heavily involved in watching the Cowboys and the Rangers. But even college basketball, I don't know.

Donnie Eden (Guest) | 00:02:47 to 00:03:09

I've never been much of a college sports fan in general my whole life. I know that that's a big thing. For you, but for me, I wake up in the morning to Rocky Top. It's your whole they're having a good season, and we do have a great ex university of Texas out of Austin, head coach Rick Barnes. Oh, yeah, you got all ricky Barnes.

Mike Mills (Host) | 00:03:09 to 00:03:32

Yeah, Ricky Barnes. He's doing great. We lost our point guard in the SEC tournament. We've struggled with that, but pretty good. And you would think FAU, Florida Atlantic beat Purdue, which we were like, you see the brackets, you see where they are, you think, oh, my gosh, purdue, they're in good shape, whatever.

Mike Mills (Host) | 00:03:32 to 00:03:43

And then they beat them. So it's either good, like, oh, it's just FAU, or wait, they beat Purdue. So who knows what we're going to have tonight? 08:00 central time. Yes.

Donnie Eden (Guest) | 00:03:43 to 00:04:03

08:00 P.m.. Big game. But it's just something to do while there's no football. Well, here, I'll tell you, anytime I get involved in any type of sports whatsoever, I'm usually gambling if I care about it enough, except for the cowboys. I'll sit there and watch them, of course, without having to put money on it.

Donnie Eden (Guest) | 00:04:03 to 00:04:18

I don't bet on the cowboys, but if I were going to bet on the NCAA tournament, it would be the best type of game to bet on because it's exciting. There's no doubt it's exciting. Right at the last minute, you're up by ten. This is great, man. We're making money.

Mike Mills (Host) | 00:04:18 to 00:04:33

Yeah. Well, that is a little known fact about me as emotional and high energy that I am. I hate any type of gambling except the golf course. Any kind of gambling. It makes my stomach hurt.

Mike Mills (Host) | 00:04:33 to 00:04:47

I'm meaner, than hell, my wife hates me. I'm a terrible gambler. Well, but if you're gambling on the golf course, it's the same thing, right? Yeah, but guess who's in control when I gamble on the golf course? You right.

Mike Mills (Host) | 00:04:47 to 00:05:16

I don't want to gamble on some no, somebody else's performance out there. 18 year old kid, whether or not he got a good night's sleep or god knows what he did two days I gamble on me or even cards roulette craps, it's chance. And that's confidence. Maybe. Although I'm not the best golfer in the world, I play with people that are pretty even with me, but I will bet on me any day, right?

Mike Mills (Host) | 00:05:16 to 00:05:23

Is that too cocky? No, sir. I don't think that's cocky at all. I would call that confidence in yourself. I think that's great.

Donnie Eden (Guest) | 00:05:24 to 00:05:37

I get the sentiment. I know what I can do. That don't mean I do it every time. Right. Well, so I had you on here today because I want to chat about all the fun little market stuff that's happening in our world.

Donnie Eden (Guest) | 00:05:37 to 00:06:12

And since we are both knee deep in this stuff every single day and we have our own side conversations about this all the time, but we'll figure we'll do this publicly on these type of deals. So I want to start with obviously, the fed raised rates yesterday, another quarter of a point, which I think there was some general sentiment that they may actually start to pause and not actually do that. But of course that's not what happened, which ultimately is probably a good thing, I think. But I want your thoughts. What do you think just in general before we get into the mortgage impacts?

Donnie Eden (Guest) | 00:06:12 to 00:06:25

What do you think? Just about the Fed raising rate and what all they needed to do or didn't need to do. It depends on which hat I'm wearing, right? Okay, so put on my mortgage guy hat, right? 22 kind of sucked.

Mike Mills (Host) | 00:06:25 to 00:06:43

Rates went through the roof. Nobody with a three, four, or even 5% interest rate is lining up saying, hey Donnie, let's get this thing refined. I want to move it to a 15 or get some cash out. Right? So from my mortgage guy hat, I'm thinking, man, just quit so we can move on.

Mike Mills (Host) | 00:06:43 to 00:07:09

Although another potential really good thing is if they totally wreck the whole monetary system, our whole economics at all, we will be in a very painful recession. And Mike, we all know what happens when we go in a recession. Hey, listen, Uncle Sam's got this covered, man. Your country is here for you. We're going to bring rates down and get that covered.

Mike Mills (Host) | 00:07:09 to 00:07:22

So it could help me in both ways depending on how it goes. Now let's put my grandpa hat on, okay? Grandpa really wise guy. He's got a lot of experience. Are you talking about yourself again or.

Donnie Eden (Guest) | 00:07:22 to 00:07:40

Are you talking about your grandpa? Whatever. Anybody's grandpa wise guy he knows give good financial advice. They would probably say something along the lines of, hey man, price of corn last four years has gone up 40% total. That's ridiculous.

Mike Mills (Host) | 00:07:40 to 00:08:03

We got to stop that. I went to go fill my fuel up. I went to buy some whatever. And they feel it these people that really pay attention, not just eggs, because you see it on news. But I talked to a golf cart guy, Shocker, earlier today, and he was talking about he said, I'm not seeing any relief on the price of things that I buy.

Mike Mills (Host) | 00:08:03 to 00:08:17

So that's the PPI, the producers price index. Then you got the consumers, which is when he sells it to the consumers. He said, I'm not seeing any breaks on that whatsoever. I'm not seeing signs of it. It's not coming.

Mike Mills (Host) | 00:08:17 to 00:08:36

So with that hat on, I think we got to go. And our good friend Barry Habib says, we don't need to go further. We just need to let this take hold, right. What we've done over the last seven or eight months. So it really depends on which hat you've got on.

Mike Mills (Host) | 00:08:36 to 00:09:07

But to be quite frank, I think a quarter was applicable and probably needed to some extent because a lot of people give our Federal Reserve, the people in charge, each individual, a lot of grief about you're being stupid. You're looking in rear view mirror, you're not looking forward and you don't understand what's going on. Right? They know what's going on now is some of this political and we're trying to force ourselves in one direction or another, maybe some of that. But they're smart.

Mike Mills (Host) | 00:09:07 to 00:09:27

They know what they're doing. So depends on which hat you got on. Well, part of the issue, I think, with the rates going up like they have, is that there's two things that they're trying to accomplish. Well really one main thing that they say, even though they'll mention it, but they don't say it outright, but they want people to lose their jobs. That's what they're trying to do.

Donnie Eden (Guest) | 00:09:28 to 00:09:38

They're trying to get the unemployment rate up so people will lose their jobs. Right? That's kind of rough, right? I mean, you don't want to root for people losing their jobs. It's not a good thing.

Donnie Eden (Guest) | 00:09:38 to 00:10:07

But one of the things that I've read recently about it that I've done a few things on is a good portion of the inflation that we've experienced has actually come from corporate profit margins, not from the actual cost of it going up. Because when you look at now, people say, well, their profits have gone through the roof. That's true, they have. But they've gone up because when you have a higher dollar amount, you're going to have a higher dollar amount of profit. That's just how that works.

Donnie Eden (Guest) | 00:10:07 to 00:10:41

So you can't judge it off that, but what you can judge it off of is the margin, because the margin is a percentage of what you're selling it for versus what the cost is. And that has gone up pretty heavily. And there's several economists, different people looking at it different ways that have said it's anywhere between 30 and in some places 50% of the total inflation that we've felt has come from that. So when your guy is telling you that he hasn't seen it come down I don't doubt that. Because until they start turning down I mean there was something I saw online.

Donnie Eden (Guest) | 00:10:41 to 00:11:02

Where? Starbucks. Actually, they were doing one of their SEC calls or their earnings calls that they have to do because they're a publicly traded company and they were talking about on the call how they were going to add an extra nickel to this, an extra dime to that, or whatever. Not because their costs went up, but because people would pay it. And they know that they would pay it.

Donnie Eden (Guest) | 00:11:02 to 00:11:19

So they just went ahead and raised it anyway. And look, I'm all for it. You got to make your money. I get it. But there's got to be some sort of a if we're going to raise rates to drive people, get them unemployed because that's really what we're trying to do or what the Fed's trying to do.

Donnie Eden (Guest) | 00:11:19 to 00:11:55

We got to at least examine the other side of it a little bit and say, okay, how much fluff is being built into this corporate profit margin and what do we need to do to try to get that under control, right? And to your point and to circle back around and give full color to what Mike said about the Federal Reserve knows that if they tighten things up, they will tighten things up, people will lose their jobs and I'll give a little more color to that. It's pretty simple. So you got a business, right? I get in my center here, you got a business and it makes X amount of profit, revenue, whatever, per year.

Mike Mills (Host) | 00:11:55 to 00:12:55

When rates go up on not only the stuff they're doing, but the things they're buying and the people they're buying from, their rates are going up and it really starts to tighten that profit margin where it gets smaller and smaller and smaller. The head executives will say, look, we've got to still keep this margin for our investors so we just have to cut fixed cost, which by the way is a great, it's a whole podcast is fixed cost. So even in your personal budget, understanding fixed cost versus variable cost is key. But they are going to shut down those fixed cost as fast as possible and that is losing jobs and that creates pain because then that person goes on unemployment, they can't buy the things they need. So the golf cart guy, for example, when people were spending their extra money at the end of the month, they don't have that to go buy golf carts and all the stuff on Amazon and whatnot.

Mike Mills (Host) | 00:12:56 to 00:13:40

And it's just a snowball effect that totally brings the pain that literally they are working to create. Now can they create enough pain to where it's stable, where it just kind of shrinks and everything comes back to normal. That's when you hear people talk about a soft landing versus creating enough pain where you get to a place where everything just collapses. And basically the news you heard from New York City and California and these banks and whatnot collapsing, it will be that on a broader scale we don't think that's going to happen. Do not go and pull your money out of the bank right now because your FDI insured unless you're over 250.

Mike Mills (Host) | 00:13:40 to 00:14:13

And on top of that, the bank that you probably bank with does not invest their money the way these two institutions did. Well they do, but not as recklessly as the other one that those two did. They invest it in more conservative. In other words, you're not shooting for the fences on every dollar that you invest because remember, banks do not have your money in the counter at the teller. They invest roughly 90% of it.

Donnie Eden (Guest) | 00:14:13 to 00:14:56

Yeah, well, my whole thing about the inflation issue that we're dealing with is when you look at one of the things and we're going to show some slides in a minute to give more credit to our guy Mr. Habib, who we always watch what are they called? MBS highway. But when you look at they talk about services because that's the one when you listen to powell talking yesterday, he was talking about how they're really looking at the services inflation part that they're trying to get. And you know, when you look at different people being laid off of jobs, we had layoffs in our industry way early on, right, because we felt the pain in the mortgage industry and the real estate industry before everybody else.

Donnie Eden (Guest) | 00:14:56 to 00:15:15

And I still don't think the pain is fully kicked into the markets just yet. But we felt all that. We were kind of like the canary in the coal mine to a certain extent because we were dealing with that and had to go through it. Well, take the airline industry, for example. I don't know how many people have flown lately, but if you go fly right now, number one is most of the flights are overbooked.

Donnie Eden (Guest) | 00:15:15 to 00:15:39

So they're having extra people that they're booking on the flights. There are less flights available. And so the cost of that flight is now going up because they laid off people as well. And their profit, by the way, is still very good, but they are limiting on what the amount of services that they're providing. And so even though the cost is staying high, it's staying high and the demand is staying high because there's fewer availability of services.

Donnie Eden (Guest) | 00:15:39 to 00:16:19

So when I have ten less flights to pick from, and I only got four now that I can now choose, the cost is still the same. It has not gone down. But the availability to take different times and go in different place, and everybody's being paid in hotel vouchers and everything else to stick around for two more days and then they'll give you a credit, which you would just have to use at a later date. But an industry like that, it's a services, and that's a travel industry, which is part of the inflation that we're dealing with. But part of the inflation from that is coming from the fact that they have laid people off, but they're still charging the same because they're doing less flights so they can keep their margins.

Mike Mills (Host) | 00:16:19 to 00:16:33

One of my favorite things about how we've got because back in the day, Mike, a plane was luxury. I mean, you had leg room. Heck, you could smoke in the seat. Oh, yeah, it brought you a big plate of food. Whatnot?

Mike Mills (Host) | 00:16:33 to 00:17:01

Now, I noticed this over the last couple of years where they're streamlining their, again, fixed cost. The person, male or female, that's checking you in your bags as soon as you walk from outside is also as soon as they check everybody's bags, they run to the gate and then they sit up at the counter like, okay, the flight leaves at this time and, oh, you have a change. All you need to do, Donnie, you lost your boarding pass. Here's another boarding pass. Show me your ID.

Mike Mills (Host) | 00:17:01 to 00:17:12

And then they run over to the door and then they say, okay, a one through 17, please. Move forward and then they do it all. They are literally doing all of it. All of it. They're doing all things.

Mike Mills (Host) | 00:17:12 to 00:17:42

And that is exactly what you're talking about. Is it labor shortage or is it profit grabbing? Yes, it's profit grabbing, no doubt. All right, so you brought up the banking stuff, so I want to get into that with you as well. So just to recap for everybody, what's happened so far is you've got essentially four there might be some other ones that are underlying a little bit that we don't know about yet, but there's four significant bank issues that have come up in the last, let's call it two weeks, right?

Donnie Eden (Guest) | 00:17:42 to 00:17:55

So you have SVB, which is Silicon Valley Bank, which is based in California. Everybody hates California. So it's out there. Then you have Signature Bank which is based in New York City, which nobody likes that either. Right?

Donnie Eden (Guest) | 00:17:55 to 00:18:10

And then you've got Silvergate which was a bank that was heavily invested into crypto. So there's another little avenue for you. And then you have Credit Suisse. So Credit Suisse is not a us. I mean they do business in the US.

Donnie Eden (Guest) | 00:18:10 to 00:18:23

But they're not a US bank. They're not based here, they're based in Switzerland. And each one of them have kind of experienced different things. Now I know a ton about Silicon Valley Bank. I don't know a bunch about what happened with Signature, but I know it's similar.

Donnie Eden (Guest) | 00:18:23 to 00:18:46

But just a couple of highlights on what happened with Silicon Valley Bank. So everybody knows. So first off, they had been warned multiple times before the regulators took over with some of their practices of investing. They would been given basically like, hey guys, y'all are getting a little risky here. You need to kind of pull back or however much you're lending out, you don't have enough deposits in order to cover that.

Donnie Eden (Guest) | 00:18:46 to 00:19:23

So you need to make sure that you be a little more conservative on that. Of course, that's just an email and a slap on the wrist. Nobody's doing anything about it. Second thing is, right before regulators took over, I think I read it was like 60% of their upper level management got millions of dollars in bonuses that were paid out the day before regulators took over. The third thing was that their board, their board of directors, the vast majority of them sold anywhere between 20% to 40% of their stock the day before everybody took over.

Donnie Eden (Guest) | 00:19:23 to 00:20:00

So they knew this was coming. They absolutely knew it was coming. They cashed out, regulators showed up. The other little twist on Silicon Valley Bank specifically is that most of the deposit holders, so I say most of them, this was what I would call like a VC bank where venture capitalists were funding tech startups in that area to kind know, to help them grow their business or whatever. Well a lot of these VC guys, venture capitalist money that's sitting in these banks, they also have very strong connections to the federal government, Congressmen, the Fed, because they have a lot of money.

Donnie Eden (Guest) | 00:20:00 to 00:20:42

And when you have a lot of money, you get a lot of access, including the governor of California, Gavin Newsom, who had quite a bit of money in Silicon Valley Bank when it went under. So to have over the weekend, the Fed come in and say not only are they going to insure what the FDIC is allowing for, which is that $250,000 limit, but they were going to insure everything, okay? So there was no recourse for making all those bad bets for what they did. What do you I mean, we can bitch about this bank and how the government jumped in all day long, but it really doesn't matter. And I'm not well, here's why it.

Donnie Eden (Guest) | 00:20:42 to 00:21:10

Matters, though, because the Fed has been working so hard to curb inflation, and they've been running billions of dollars off their balance sheet, and we just added $300 million to their balance sheet or billion overnight. I agree 100%, but that's what I was getting at. So the thing you have to understand and that is why some banks are better than others, right? It's all about the risk. And I think about that with my personal things that I buy and invest in and do.

Mike Mills (Host) | 00:21:11 to 00:21:32

What is the risk? I mean, is it going to make it where you have this much money and now you have this much? Or is it going to make it where you might have to eat ramen noodles or what kind of deal? What is the risk on there? And most banks have a person that's in charge of managing risk.

Mike Mills (Host) | 00:21:32 to 00:21:49

The best part of this whole deal is here's what I think happened. They fired their risk manager. They said, we don't need you anymore. Right? And what I think happened was the risk manager went in and said, hey guys, fancy board meeting.

Mike Mills (Host) | 00:21:49 to 00:22:30

I hope you are doing well and everything, but we might need to talk about how much we're invested in these long term bonds, essentially, right? Just all these man, I want to be a taco company. All these people are taking this capital and investing it into their business, which, wouldn't you love to know what some of these people spent their money on? Was it things that helped them create revenue? Or was it what is that movie where they I think is it not the Office, Parks and Rec, where the guy opens his own company and he just has pool tables in there and pinball machines?

Mike Mills (Host) | 00:22:30 to 00:22:41

It's like, yeah, we're very open, whatever, and we're just cool here. And what do you do to create revenue? I don't know. We hadn't figured that out yet. So I wonder what this money actually went to.

Mike Mills (Host) | 00:22:41 to 00:22:56

And then the guy went up and said, hey guys, we need to talk about this. Said, yeah, you're fired, man. You're not going the way we are. And they didn't even hire somebody that replace them was on their side even. They fired the person they didn't agree with.

Mike Mills (Host) | 00:22:56 to 00:23:35

And this is speculation by the way, but the risk side of it is what you've got to look at. So when you think I need to call my banker and see what I need to do here, that's the difference in your bank and I can almost guarantee it. And these banks that went bad is their risk was through the roof. And to be quite frank, there's a good chance that they knew that it never was going to fulfill what they hoped. I don't know if they hoped it or if they down deep knew that it wasn't going to fulfill, but the bank was lending it out.

Mike Mills (Host) | 00:23:35 to 00:24:05

So who cares? Let's take it. The biggest problem they had is that they had a lot of their so you have your deposits and based on your deposits you can lend out X amount of dollars, your reserve requirements that you have to have. But then the rest of the money you try to put into other investments that are going to help bring in revenue for the bank so you can continue to lend so you can grow your reserves. Well, they had put a lot of their money into long term bonds.

Donnie Eden (Guest) | 00:24:05 to 00:24:45

And the problem with long term bonds when rates go up is that the value of those go into the floor and so they didn't have enough to cover because they were so over leveraged in that particular. Because the idea is that you got to spread it out. Like you got to put it in a bunch of different places so that way if there's a crash or if there's something that goes down usually like if you're in bonds and then you're in stocks, well if stocks go down, bond goes up, bonds go down, stocks go know. That's just kind of how a lot of the stuff in the market works. And so that was the problem, is they were so heavily invested into that one facet and they weren't backstopping themselves in other places that when the Fed started raising rates they didn't have enough.

Mike Mills (Host) | 00:24:45 to 00:24:55

To. No, no, that was pretty much it. Well, and that goes back again. Mike, here's that word again, risk. Right.

Mike Mills (Host) | 00:24:55 to 00:25:15

When people are in the stock market, it is a riskier, know, like a CD at your bank. You know, you can walk in and you are guaranteed to have more money next year, next six months or next two years than what you gave them. It is guaranteed, but it's smaller, right? Yes. So that's the more conservative risk.

Mike Mills (Host) | 00:25:15 to 00:25:41

Well, you go into it's a great time to bring this up. So Mike, he loves aliens and Darth Vader and cryptocurrency and all this stuff. He's explained a lot to man. You know, I don't, I don't want to dive in too awful deep, but I want to dive in enough so I follow it. Now, remember, I'm a terrible gambler, so $100 is a lot for me to gamble.

Mike Mills (Host) | 00:25:42 to 00:25:54

So I put $100 in bitcoin. I went to this cute little app and they just said, hey, Donnie, thanks. And you said, Put your money here and all this stuff. And I looked up and I said, all of a sudden, I had $100 of Bitcoin. Right.

Mike Mills (Host) | 00:25:54 to 00:26:06

This is about a year and a. Half, maybe year and a half, probably. Year and a half, year and a half. He said, oh, my God, it's going to double by the end of the year. It's going to be great.

Mike Mills (Host) | 00:26:06 to 00:26:11

I said okay. Great. I'm in. Because if it does, I'm sold 100%. I'm easily excited.

Donnie Eden (Guest) | 00:26:12 to 00:26:21

Right. This is a risky that we're talking about risk here. Correct. I currently have $44.38 in that account. That's right.

Mike Mills (Host) | 00:26:24 to 00:26:42

So I could have bought a $100 CD I'm making our point, Mike. I could have bought a $100 CD and I would have $103.05. Right. So, yeah, it's all just where you want to play with, right? That's right.

Mike Mills (Host) | 00:26:42 to 00:26:52

What is your risk tolerance? What is it that is not going to keep you from having to take three Tylenol p. M. Before you go to sleep? Because you're like, I'm just worried to death about it.

Mike Mills (Host) | 00:26:53 to 00:27:22

But the point we're driving home, really more than anything is these banks were not risk savvy. They were risk fly by the seat of your pants, let it all go, and at the end of the day, they didn't have a risk manager and all that. The travesty in this is Mike, if our business failed and let's just say. Some way, yeah, anybody bailing us out. If we got it on the national news, they wouldn't do squat for Mike.

Donnie Eden (Guest) | 00:27:22 to 00:27:59

And we're we are out on our own on that. Well, and the thing too is that when you look and the reason why I don't think at this point I mean, granted, anything can change and stuff certainly can adjust this opinion, but right now I don't think we're in a banking crisis. And the reason being is when you look at the Fed and they opened up know, I think it's like a lending portal or some crap. I don't remember what it is, but basically, which is ridiculous, that they're lending money to these banks at a lower rate than what they set their rate at. Their rates at five right now and they're lending at four, which is unbelievable.

Donnie Eden (Guest) | 00:27:59 to 00:28:25

But either way yeah, but when you look at so far, the banks that have taken advantage of it, they don't say individual banks, they just show the regions where the money's coming from. The only regions that is pulling money is California and New York. That's it. So you don't see other banks tapping into this to pull money back out because they don't need it. So that just means that those banks need it because they got into trouble and.

Donnie Eden (Guest) | 00:28:25 to 00:28:39

Made stupid decisions. And I disagree with the fact that they're getting bailed out, but whatever. It is what it is. But it's not a systemic issue, at least not right now. Our government is good, Mike.

Mike Mills (Host) | 00:28:39 to 00:28:57

Our government is good to us. And they keep rates low when they need to be low, and they're going to make sure we all have health care. And that's a whole nother podcast, and it requires beer, for sure. All right, so let's talk then about how this affected housing then. Okay.

Donnie Eden (Guest) | 00:28:59 to 00:29:32

The other thing, when we talk about what I would call like, let me go back to this, some of the news media out there, because ever since this whole thing started with rates going up, all we've heard about how is that housing is going to crash. I mean, how many people have you talked to, Donnie, in the last twelve months that have told you, I'm waiting because I know the market is going to come down and house prices are going to go through the floor. And I've heard that so many times and here we are twelve months later and we're still higher than where we were. Yeah.

Mike Mills (Host) | 00:29:35 to 00:30:13

I don't ever want to be mean to anybody when they say that like, no, man, you're an idiot. That's not going to happen. But the truth of it is, it's very obvious. Mike was just getting started when we had the meltdown that we all hear about. And the younger people that are in their twenty s and early 30s just heard their parents talk about we were checking your pulse and getting a copy of your driver's license and you stated, like, verbally, right, I make $10,000 a month.

Donnie Eden (Guest) | 00:30:13 to 00:30:18

Okay. Are you sure it's not 12,000? Yes. Okay, 12,000. How much money do you have in the bank?

Mike Mills (Host) | 00:30:19 to 00:30:32

80,000. Is it 80 or is it 120? Seriously, guys, that's how we were making loans. Oh, and by the way, I don't want to pay these high interest rates. They're at five right now.

Mike Mills (Host) | 00:30:32 to 00:30:53

That's ridiculous. So put me on a three year arm and I'll get 4% and then we'll figure it out in the next three years. Right. Those are the two big things that happened then versus what's happened now, which it was really similar in the value of houses were going up fast. But I'll tell you this.

Mike Mills (Host) | 00:30:53 to 00:31:20

Look at me. Look me in my eyes and say that and say it with me. If you do not buy that land to build your dream home right now, it will be more expensive tomorrow and the next year and the next year, and the next year. That house with the picket fence and the super awesome pool is not going down. Now, let me say this, and just to put a little asterisk if somebody watches this three years from now.

Mike Mills (Host) | 00:31:21 to 00:31:33

Yeah, well, okay. China literally blew up America. That changes things. Somebody trade 911 kind of things. I can't speculate on that.

Mike Mills (Host) | 00:31:33 to 00:31:53

But understand that our economy is very strong. It's too strong essentially, at this point. And all of these things watch the movie The Big Short. It's a great date night movie. They do a great job of you don't have to be Donnie and Mike that do this every day to really understand what happened in the mortgage business.

Mike Mills (Host) | 00:31:53 to 00:32:09

In the mortgage industry, we are making good loans. Matter of fact, one of our clients has closed a loan in the last year. Two, three, just let people know how much stuff we verified. We verify everything. We didn't even used to verify if you filed your taxes.

Mike Mills (Host) | 00:32:09 to 00:32:35

They said, yeah, here's my taxes right here. Cool, looks good. You think you filed them with it don't matter, it's fine. So my take on that, I get heightened because I lived the subprime adjustable rate, stated income, stated asset, don't check your credit score days. We are making so much better loans and those bad loans are what shut everything down.

Donnie Eden (Guest) | 00:32:35 to 00:32:50

Well, and the default rate is, I mean, I think it's still less than 1% right now. Less than it's ever been? Yeah, it's the lowest it's ever been on. Especially when you've got two and 3% rates, which is what I think I read the other day. It was 99% of people that have a mortgage right now have an interest rate less than 6%.

Donnie Eden (Guest) | 00:32:50 to 00:33:05

99%. That's insane. But you don't have to take our word for it. I'm going to show you, we're going to show you exactly why. So one of the narratives that you hear often is you hear the median home price is declining, right?

Donnie Eden (Guest) | 00:33:05 to 00:33:21

You hear about the price of homes are going down. Okay, let's look at that and let's understand what that means. And again, thank you. Barry Habib, MBS highway. This is where we get all this stuff from, but it was reported just recently in February that the median home price was headed downward.

Donnie Eden (Guest) | 00:33:21 to 00:33:30

Well, the median home price is the average price of homes that are sold. Okay. It's not appreciation. Appreciation is very different. Yes.

Donnie Eden (Guest) | 00:33:30 to 00:33:43

You in the corner, what can I do for you? Median is the middle number. Yes. Sorry. If you've got one, a two, a seven, that's my fifth number, 21 hundred.

Mike Mills (Host) | 00:33:43 to 00:33:55

The median is the seven. Whatever the number in the middle of all the numbers is median. Right. It's not average. The mix of homes that are being sold has changed quite a bit in the last twelve months.

Donnie Eden (Guest) | 00:33:55 to 00:34:15

And that's why you see that number coming down, because you can see right here, when you look at these different prices, 750,000 to a million, well, that's down 0.2%. Not a lot, but still down. Right. The 500,000 to 750,000, that's down 0.6%. But when you look down here at these lower price homes, they are up.

Donnie Eden (Guest) | 00:34:15 to 00:34:41

And the reason for that is a couple of things. Number one is when the market was tight and everybody in the planet was trying to buy a house when rates were 2%. If you had a VA loan or an FHA loan or any kind of government deal that you were trying to offer USDA, you weren't even being considered. You weren't even being factored in because they had 25 other offers. Ten of them were cash, and ten of them were going to pay conventional overvalue, so you weren't getting it right.

Donnie Eden (Guest) | 00:34:41 to 00:35:21

So when the market shifts away from these higher priced homes because the interest rate on a $750,000 house, when it goes from 3% to 6%, that makes a huge difference on the payment. But the difference on the payment from 120 or $250,000 house from 3% to 6% isn't as significant. And so those homes are in higher demand because people that weren't able to purchase homes during the market craziness now have an opportunity. And those are usually going to be lower price homes because those are the type of buyers that are buying those properties. There's not a lot of movement, by the way, as we say all this.

Donnie Eden (Guest) | 00:35:21 to 00:35:48

Understand that real estate is very local. Okay. It very much depends on your market. Yeah, sorry, I was going to say the main thing with this slide is the median price of a house is that there were less of the larger homes sold and more of the smaller homes. Correct.

Mike Mills (Host) | 00:35:48 to 00:36:12

Part of that can be boomers going away and Gen z and freaking with millennials coming into the marketplace because those guys are not buying unless they're, what is it? Influencer. And all of a sudden they just make a bazillion dollars today. My daughter wants to be an influencer, even though we got her highly educated. Yes, she wants to be.

Donnie Eden (Guest) | 00:36:12 to 00:36:23

Of course, everybody does. That's the bottom line in that one right there. But Mike, you explained it very well. So next thing we got existing home sales. So this is closings.

Donnie Eden (Guest) | 00:36:23 to 00:36:48

Okay. Now, this is for the month of February, by the way. So we're 14 and a half percent up from January to February. That means home sales, existing homes, the number of homes sold have gone up 15% almost from January to February. Now, if you look year over year, where we go from last January to this January or last February to this February overall, it's still down.

Donnie Eden (Guest) | 00:36:48 to 00:37:18

Right? But you also have to remember, we were literally living in the craziest, busiest housing market that we've ever seen in the history of the world. And we are down 22% now from February of last year, as opposed to 37. So we literally have cut that number in half from where we were because we're entering into the spring and summer buying season, and rates are starting to come down and settle in, and activity is increasing. That's so easy to explain.

Mike Mills (Host) | 00:37:18 to 00:37:34

On that top line, literally, people were lining out the door for every single house to do it. And rates were a lot, three, 4%, two or three. Let's see, seven, three, five. They were at least two and a half to three and a half percent. They're half as much.

Donnie Eden (Guest) | 00:37:34 to 00:37:47

They were half as much. Now rates are higher. And, oh, by the way, it's wintertime. You mentioned springtime. I mean, we're going to show a graph here in a second, I think, about the lag in the wintertime.

Mike Mills (Host) | 00:37:47 to 00:38:11

And as it starts to ramp up, by the way, right now. So let's pause. If you're watching this show and you've got a little deal about, hey, man, I might be in the know, like, you know what? This makes sense because I saw Donnie sign when I drove by the other day. Even though this is a Texas deal, I saw Donnie sign that said Dave Ramsey said, buy the house now, refinance it later.

Mike Mills (Host) | 00:38:11 to 00:38:31

This is Dave Ramsey, the most conservative financial guru in the history of the world. Buy the house now because it's going up. So now is the time. And there's another little graph that talks about how where is the bottom right, the bottom of this little lull that we're show you? Okay, here we go.

Donnie Eden (Guest) | 00:38:31 to 00:38:51

We'll get into it. All right. Yeah. So this is just one other thing before we show this, because this plays a role into what we're about to talk about is inventory, how many houses are available for sale, what is available, because that makes a huge difference. Okay, so they say right now we have two and a half months, basically, of supply available.

Donnie Eden (Guest) | 00:38:51 to 00:39:00

And by the way, a normal market is about four to five months. All right. That's a normal balanced sellers and buyers market. So we're still way below that. All right.

Donnie Eden (Guest) | 00:39:00 to 00:39:19

But I want to make one note on this because it's not as accurate when we say we have two and a half months of supply, because that means that there are half of those homes are under contract. They are currently under contract. They are not available. They are not available to purchase. Okay.

Donnie Eden (Guest) | 00:39:19 to 00:39:35

The only homes that are available to purchase, we have 578,000 listings available. That's one and a half months of supply that's available for you to go out and buy right now. All right. That is incredibly low. So low that I'll let Donnie explain this one right here.

Mike Mills (Host) | 00:39:35 to 00:39:50

Yeah, that lag. Let me get my bearings here. So let's go to January of 2018. It was a little over a million right here. Sure enough, by July, it's at a million three.

Mike Mills (Host) | 00:39:50 to 00:40:08

And then January of 2019, it was about a million one. That's the seasonal adjustments that move up and down. You can literally see the wintertime. And every month, every year, the low part of the wave is the wintertime, the high part is the summertime. Correct.

Mike Mills (Host) | 00:40:08 to 00:40:35

But just understand that now is the perfect time to buy a house. And the reason is because we are going from okay, you remember they were lined up out the door to oh my gosh. Builders are quitting building houses because they can't sell them just literally a few months into rearview mirror. Just like four months, five months ago. Now it's starting to ramp back up where people are looking again, it's springtime.

Mike Mills (Host) | 00:40:35 to 00:41:09

People hear about rates coming back down and people realizing the housing crash is not going to happen. There are people that have waited till today like they're making their decision right now because they thought it was going to crash and they're saying, well damn, now I got to go buy a house and it's even higher. Right? So now is that time before because you think about it, as soon as it gets hot and the news starts talking about it and you see it on Facebook, all your know, Mike's agents out there going, hey, I got another listing. Hey, I sold another listing, another happy closing.

Mike Mills (Host) | 00:41:09 to 00:41:34

You're going to see all that and you're going to be late to the game because right now sellers are actually pretty darn eager to kick in a little closing cost. Buy your rate down just incentivize. Which by the way, we're twelve months away from. They would laugh at you out loud if you ask them to pay any closing cost. Well, and that was twelve months ago and we might be twelve months away in the future for that happening again.

Mike Mills (Host) | 00:41:34 to 00:41:50

It may be less than that. Mike, if rates come down, let's just say around six or just below six. I think just below six. Warm outside. When that happens, that's anytime from now till October, September range, it's going to go freaking nuts.

Mike Mills (Host) | 00:41:50 to 00:42:03

Because of pent up demand. It's the dam of holding everybody back. Where Sally and Johnny? They've been married two years. They're living in their grandma's house that they bought from dad.

Mike Mills (Host) | 00:42:03 to 00:42:15

But man, now they've had new kids and they've been talking about it for the last couple of years like, honey, we got to get out of here. This toilet has driving me nuts. We live on the side of the hill. But well, no honey, we can't do that. Rates are up and these houses, they're way out of whack.

Mike Mills (Host) | 00:42:15 to 00:42:41

This is crazy. All of those people are wanting to buy a house. Sorry, I get so excited when I talk about this. Well, but the thing too is when you look at these numbers, okay, when they're talking about and again, this is just what you hear versus the reality of it. Because again, you got to remember when you're watching the news, when you're clicking through the internet, the things that get people to click is sensationalism.

Donnie Eden (Guest) | 00:42:41 to 00:43:16

They want it to sound like the world's crashing. Because otherwise why would you click on their link if they just told you, hey, another sunny day, everything's good, just normal, don't worry about us. That's just not how it works. So when they talk about inventory increasing, it is, but it's increasing from literally the lowest it's ever been in the history of real estate. So when it goes up 3% from where it was at the lowest level it's ever been, well, that's good because there's more houses available, but doesn't change the fact that it's in extreme high demand.

Donnie Eden (Guest) | 00:43:16 to 00:43:43

And that's why you don't see appreciation of homes not median value, but appreciation of homes going down. Because it's not because it's still in high demand. There are still people buying. I think we're out of the window of time where you could get a really good deal on a house. I think there was a period of time, it was probably about six or eight months where you could get a house because rates were almost 8% at one point.

Donnie Eden (Guest) | 00:43:43 to 00:44:16

So if you're one of those that's just like, hey, man, I understand how this game works. I'm going to go out there, I'm going to offer 300 for this house listed at 305. I'm going to ask them to pay for $15,000 in my closing cost so I can buy my rate down a little bit. And then I'm going to have a little bit lower rate than what the market bears out, and I'm going to only have brought my down payments at closing and I get to keep all my money. And then in six months or eight months or twelve months, or whenever we get to that point where rates are in those high five, fives, maybe low sixes, maybe even low fives, if we fast forward the next spring, then you can refinance that.

Donnie Eden (Guest) | 00:44:16 to 00:44:18

And you had that high rate for twelve months, and that was it.

Donnie Eden (Guest) | 00:44:22 to 00:44:32

The reason I had you here too, as well, is because it's hard to help people understand. We are mortgage people. Of course we want you to do loans. My wife's a realtor. We're in real estate.

Donnie Eden (Guest) | 00:44:32 to 00:44:36

Yeah. Bye bye. Absolutely. The elephant in the room. We're biased.

Donnie Eden (Guest) | 00:44:36 to 00:44:47

Okay? 100%. But this information is not based off of just smoke and mirrors. Like, this is reality. This is what giving you data.

Mike Mills (Host) | 00:44:47 to 00:45:11

We're giving you real data. The one thing I'll think about, I was thinking about when you were talking about the good deal, is not going to happen anytime soon. Well, one thing I like to bring up to my clients I'm just following my chair. One thing I like to bring up to my clients on a regular basis is the story of how I buy cars. Okay?

Mike Mills (Host) | 00:45:11 to 00:45:40

I buy cars this way. I got one person I go to, and he finds me what I want, and I say, hey, I'm trading in this car, right? So I'm going to trade you this car at wholesale, but I'm going to buy the car you're buying at wholesale, or either way, you pick. I will trade my car to you at whatever the retail value is. You give me retail value, and if you do that, I will pay retail for that car, right?

Mike Mills (Host) | 00:45:40 to 00:46:17

I don't want to get bit on both ends, trade your car to wholesale and buy retail, right? Well guess what guys? Okay, so Mike, if you were going to sell your house right now, okay, it's kind of in the middle. Let's just say it was a year ago and you sold your house, man, they're going to be lining up out the door and there's going to get ten contracts and you're going to pick the best offer that is full retail value, right. Well when you go around the corner and you go to your favorite agent, sorry, this way that you literally lay in the bed with at night and say, honey, go find me a house.

Mike Mills (Host) | 00:46:17 to 00:46:44

You're going to pay full retail for that. So good deal, bad deal, it really doesn't matter because take this, if you're getting a good deal on your house, you're probably going to have trouble selling your house or you better have it priced right, which means a lower value. So somebody's getting a good deal on your house. By the way, good deal to good deal is this much difference. Bad deal to bad deal, is this.

Donnie Eden (Guest) | 00:46:44 to 00:46:56

Much still the same? Yeah, it's not any different. You can't sell your house at retail and then go find a good deal unless you wait a year and time. It just right. Yeah.

Donnie Eden (Guest) | 00:46:56 to 00:47:18

And that's the thing is it's just one of those issues that we just want to make sure that it's clear that it's not something that obviously we're mortgage people and we want you to buy and do loans. But this is just what it is and we've been saying it forever because it's just the truth. Prices keep going up regardless of what rates do. They go up, they go down. It changes all the time.

Donnie Eden (Guest) | 00:47:18 to 00:47:41

But the prices are going to continue to go up. And you can Google any graph you want to look online and it will tell you the exact same thing. They go like this, a little bit there's, a little bit of that, but it's always like that and it never slows down. So then last thing kind of is we're going to be headed into a place where rates are going to come down. Most likely we'll see anything can happen.

Donnie Eden (Guest) | 00:47:41 to 00:48:04

But in the next, say twelve to 18 months we're probably going to see something around into the low fives if we go into a recession, which everybody's predicting is going to happen. So when that happens then there's going to be two things. One is the demand for housing is going to go up because rates are down again. And if everybody's going to come flooding the market, which we just talked about, the other thing that's going to happen is people that bought a house recently are going to look to refinance. Right.

Donnie Eden (Guest) | 00:48:05 to 00:48:23

So Donnie, when you talk to people about refinancing, when someone says, when should I refi, Donnie? At what point should I do it? What kind of advice do you give. I love it when they say, well, if it goes down one point, I refi and that's wrap that up in a bow. I mean, it's case by case basis, for sure.

Mike Mills (Host) | 00:48:23 to 00:48:36

Strategy, right? Because there's a couple that came to me when they were newlyweds and now they've got kids in travel ball. Okay? So that changes everything. They don't want to be on a 15 year mortgage right now.

Mike Mills (Host) | 00:48:36 to 00:48:58

They've got to just make cash flow, so they're going to slide it back to a 30. Or they need cash to pay off these student loans that will probably never be paid off by Uncle Sam. Or they're now needing a smaller house. So therefore they think, okay, well, we could do this or we could keep our same house and airbnb it, but we got to set it up a certain way. So it's case by case basis.

Mike Mills (Host) | 00:48:58 to 00:49:21

But the truth of it is especially FHA just cut their mortgage insurance almost in half. I don't know. I'm sure you've 36%. Yeah, you've doubted that. So it could be just as simple as taking your FHA mortgage, streamlining it super quick, saving a little money on your rate, saving quite a bit of money on your mortgage insurance and call it a day.

Mike Mills (Host) | 00:49:21 to 00:49:42

It doesn't cost hardly anything. Yeah, well, we always try to look. Basis and that's why you deal with an advisor. By the way, the name of my company, I made a total conscious effort to call it Prosperity Mortgage Advisors. We're not order takers and like, yeah, sign here, whatever, take it or leave it, that kind of deal.

Mike Mills (Host) | 00:49:42 to 00:49:54

I want to be like your tax guy, Mike's, the same way I want to be your hairdresser. Right? Your hairdresser knows you very intimately of what you want. Sorry, that was a bad joke. I mean, I'm having a bad hair.

Donnie Eden (Guest) | 00:49:55 to 00:50:29

You're really throwing shade at me over here with the hairdresser comment, buddy. But your tax guy, your financial planner, whatever, you have those meetings with them and say, okay, Donnie, I want to strategize to maximize probably my largest investment, my largest debt into what my family needs. That's when the rubber really meets the road of why they come to Mike and Donnie versus just dialing up somebody say, Give me a mortgage. Because in that thing they're vulnerable. They are absolutely vulnerable to not having their mortgage set up to fit their family's needs.

Donnie Eden (Guest) | 00:50:29 to 00:50:51

Yeah, what I always try to explain, because you're right, it is very personal. It's an individual basis. It's case by case on every single one because every situation is different. But ultimately you want to look at what is it costing me to refinance my house and how much if I'm not doing an equity loan. Because equity loans are different, because it's a different need there.

Donnie Eden (Guest) | 00:50:51 to 00:51:20

But if I'm just trying to lower my rate and lower my payment, what is it costing me versus how much am I saving every month, how much am I saving on a monthly basis? And then you figure out what the break even is, right. When am I going to break even on my cost? So if I look and say it's going to cost me $5,000, let's say, to do a refinance that you add to your loan, right, but I'm going to save $200 a month on my payment. Okay, well, now that's 25 months.

Donnie Eden (Guest) | 00:51:20 to 00:51:48

So it's just barely over two years, right, that you're going to break even in most cases, that makes sense now unless you know, you're going to be moving because you got a job or something. But what I typically say is, like, if you're going to break even on your cost, assuming you plan on staying in your home for in under three years, then it absolutely makes sense. And the great thing about streamlines is they don't really cost anything. So you can save 25 or 30 or 40 or $50 a month, and it didn't cost you anything. So you're good, but you look at what you're going to save.

Donnie Eden (Guest) | 00:51:48 to 00:52:13

Well, if it takes three to five years to break even on your cost, then I would typically say, well, then you need to really evaluate how long you think you're going to be in your home. Am I going to be here long enough to make it happen? And if it takes any more than five years to break even, I look at it and say, I don't think that's a good idea. And the reason being is because five years is a very long time horizon for life. Like, you just don't know what's going to happen, right.

Donnie Eden (Guest) | 00:52:13 to 00:52:34

So you could move, you could change jobs, you could do all kinds of stuff. You could refinance again, take cash out. It's just too far in advance to know that it's going to save. So just because the rate is lower, right, because you might have a I mean, I don't know many people that do, but if you have $150,000 loan and you lowered the rate 1%, I don't know, are you going to save enough on that? I don't know.

Donnie Eden (Guest) | 00:52:34 to 00:52:57

You may have to get to like one and a half before it really makes sense. But that's what we try to do is say, okay, when are you going to get even on that cost? And then that's how we evaluate if it's a good time. And what you have to be careful with, with the market that we're heading into, is that the people that bought their house, let's say someone's got 7% rate right now, because there's people that do, right. Well, if the rates go to five and a half, let's just say they go to six.

Donnie Eden (Guest) | 00:52:57 to 00:53:14

They're down at six. Well, that's the whole point. All right, well, if I've got a $3,000 loan, hey, that might be good. But what if it goes to five and a half two weeks later, or it goes to five and a quarter. And that's where the advisor role comes into play, because Donnie pays attention, I pay attention.

Donnie Eden (Guest) | 00:53:14 to 00:53:33

This is the type of market that we're watching on a day to day basis to go, hey, look, I know rates are down and it does make sense, but here's what's about to happen in the next three weeks, and the market sentiment is that it's going to get a little bit lower. So just hang on just a little bit longer and we'll get you there. But that's what our role is. That's what our job is. Yeah.

Mike Mills (Host) | 00:53:33 to 00:54:16

We have a list in our office of people literally when we're buying houses over the last really year almost, we tell people, like, look, there is a good chance that we're going to call you up and say, right now is the time to refi, and we keep a list of it. We know exactly where everybody's rate is. We know based on the notes in the file, if they've got a kid about to go to college and whatnot, or about to move out of the house or about to have kids or whatever the case may be, then we have them on the phone quickly when it gets to that time to go over that with them. Because they may watch the news, they may not. Right.

Mike Mills (Host) | 00:54:16 to 00:54:34

They may not keep up with. It our job as their advisor and one that we do an annual review with and follow up with, have you had any new kids? What's happened with that? Whatever. It's our job to keep them in a maximized loan, product and loan scenario for their family.

Donnie Eden (Guest) | 00:54:34 to 00:54:58

Yes. And that's where once the market starts to shift and of course it'll be, every loan officer on the planet will be reaching out. But you got to just make sure that the people that you trust and that you know, that have gotten you to that point are the ones that help you, because they're going to be looking out to try to make sure they put you in the best situation possible. And that's really what we're trying to do. Well, dude, we're almost in an hour.

Donnie Eden (Guest) | 00:54:58 to 00:55:04

We're right up against it. Yeah, I know. An hour. Yes. When you sell a prize.

Donnie Eden (Guest) | 00:55:04 to 00:55:23

That's right. It's been like 55, 56 minutes. So I really appreciate you coming and chitchatting with me today, talking markets and rates and all that kind of fun stuff. Anything you want to say before we. Roll up out of mean, if somebody made it through the whole thing, god bless Mean.

Mike Mills (Host) | 00:55:23 to 00:55:29

This is Texas, Tennessee, Portugal. We don't care where you're from, wherever. Thank you for watching.

Mike Mills (Host) | 00:55:31 to 00:55:41

Makes two old guys feel pretty good. That's right. Hey, listen, I'm still very young, okay? I'm 44. So you're like, what are you, 72 now?

Mike Mills (Host) | 00:55:41 to 00:55:51

I'm a half a century dead up. It's the only time you can use it's, literally, the only time when you're stealing. I mean, you could. Do a century old. But you're not having any fun at 100, right?

Donnie Eden (Guest) | 00:55:51 to 00:56:06

But maybe, hey, we're getting there. Aliens might help us out, get to that point. There's a book I've been reading called The Great Reboot where they literally take your liver and make it new again. Like, just make it grow new cells and all that. So?

Mike Mills (Host) | 00:56:06 to 00:56:12

Maybe. I don't know. But at half a century, you don't have to use a numbers. I was like, I'm a half a century. Everybody knows.

Mike Mills (Host) | 00:56:12 to 00:56:27

What that? Don't you remember when we were younger, how when somebody in their 50s, they seem like they were, like, dinosaurs? I'm so cool at 50. You're wearing a shirt that says, three putting sucks. So how could you not be cool?

Mike Mills (Host) | 00:56:27 to 00:56:36

Golfers? If you're watching this, just confirm three putting does suck. Nobody likes that. Nobody likes that. No.

Mike Mills (Host) | 00:56:36 to 00:56:45

I don't have anything else to say except you all get out there and make it great day. That's right. Well, I appreciate you, brother. Thanks for coming and hanging out with me today. Miss your face.

Donnie Eden (Guest) | 00:56:45 to 00:56:56

We'll try to get out there to the old Tennessee sometime soon. I really, really want to go get out to Mandyland. Yes. I got to go play on the put, and Green out there, so I'm with you. All right, brother.

Mike Mills (Host) | 00:56:57 to 00:56:59

Brother. Thanks, man. Take it easy. Bye. Bye.

Donnie Eden (Guest) | 00:56:59 to 00:57:03

Make it a great day. Make it a great day. Be good, humans.