Episode 93

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Published on:

29th Nov 2022

Mortgage Rates Drop, the Housing Correction isn't Over, AirBnb Issues and Q&A

The Federal Reserve may have to raise its benchmark interest rate much higher than it has previously projected to get inflation under control, according to James Bullard, president of the Federal Reserve Bank of St. Louis. Bullard suggested that the Fed’s rate hikes will make borrowing by consumers and businesses even costlier and further heighten the risk of recession.

In today's episode of The Higher Standard, Chris and Saied take a deep dive into these comments and where they come from, as well as what they mean for the economy and the continuing fight against inflation.


Thanks to a submitted listener question, they discuss the true impact of rising interest rate on the current housing market.


Chris and Saied discuss a report stating that the number of available short-term rental listings in the U.S. skyrocketed to 1.38 million in September - a 23.2% year-over-year increase, according to rental analytics firm AirDNA.


They also discuss comments from KPMG's chief economist Diane Swonk who predicts that a 15% drop in home prices for next year is “very conservative,” as the housing bubble begins to pop.


Join Chris and Saied for this fascinating conversation.


Enjoy!



What You’ll Learn in this Show:

  • Why Chris believes that an interest rate increase to the 5%-7% range in order to fight inflation seems to be a stretch.
  • A report from the Federal Reserve Bank of Dallas predicting a home price correction could remove five to point seven percentage points from consumer spending.
  • The real world impact of rental analytics on the future of AirBnB.
  • How interest rates impact the monthly payments on a house.
  • And so much more...


Resources:

"Fed’s Daly sees rates rising at least another percentage point as ‘pausing is off the table’" (article from CNBC)

"Sharp drop in mortgage rates does little to boost demand" (article from CNBC)

"Rising mortgage rates could take 20% bite out of home prices" (Article from The Real Deal)

"Too Many Rich People Invested In Airbnbs, More Than A Million Remain Unoccupied" (article from Travel Noire)

"Fed's Bullard says benchmark interest rate in 5%-7% range may be needed to bring inflation down" (article from MarketWatch)

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About the Podcast

The Higher Standard
This isn’t a different standard, it’s the higher standard.
Welcome to the Higher Standard Podcast, where we give you ultra-premium, unfiltered truth when it comes to building your wealth and curating the lifestyle of your dreams. Your hosts; Chris Naghibi and Saied Omar here to help you distill the immense amount of information and disinformation out there on the interwebs and give you the opportunity to choose a higher standard for yourself. Sit back, relax your mind and get ready for a different kind of podcast where we elevate your baseline with crispy high-resolution audio. This isn't a different standard. It's the higher standard.

About your host

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Christopher Naghibi

Christopher M. Naghibi is the host and founder of The Higher Standard podcast — a rapidly growing media platform delivering unfiltered financial literacy, real-world entrepreneurship lessons and economic commentary for the modern era.

After nearly two decades in banking, including his most recent role as Executive Vice President and Chief Operating Officer of First Foundation Bank (NYSE: FFWM), Christopher stepped away from corporate life to build a brand rooted in truth, transparency, and modern money insights. While at First Foundation, he had executive oversight of credit, product development, depository services, retail banking, loan servicing, and commercial operations. His leadership helped scale the bank’s presence in multiple national markets from $0 to over $13 billion.

Christopher is a licensed attorney, real estate broker, and general building contractor (Class B), and he brings a rare blend of legal, operational and real estate expertise to everything he does. His early career spanned diverse lending platforms, including multifamily, commercial, private banking, and middle market lending — holding key roles at Impac Commercial Capital Corporation, U.S. Financial Services & Residential Realty, and First Fidelity Funding.

In addition to his media work, Christopher is the CEO of Black Crown Inc. and Black Crown Law APC, which oversee his private holdings and legal affairs.

He holds a Juris Doctorate from Trinity Law School, an MBA from American Heritage University, and two bachelor degrees. He is also a graduate of the Yale School of Management’s Global Executive Leadership Program.

A published author and sought-after speaker (unless it’s his son’s birthday), Christopher continues to advocate for financial empowerment. He’s worked pro bono with families in need, helped craft affordable housing programs through Habitat for Humanity, and was a founding board member of She Built This City — helping spark interest in construction and trades for women of all ages.