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A 50-year mortgage lowers monthly payments but expands the buyer pool, pushing home prices up. Without more housing supply, demand-boosting policies can make affordability worse, not better.
A 50-year mortgage lowers monthly payments but expands the buyer pool, pushing home prices up. Without more housing supply, demand-boosting policies can make affordability worse, not better.
We seem to have lost a good grip on supply and demand. When you look at a 50-year fixed mortgage, you know what that's adding into the equation of supply and demand, right? You're adding in demand. You're selling more people, now you can buy. Okay, that's great on the surface 'cause we do want our young people to have a chance at the American dream. We do want our young people to pursue homeownership. However, when we add a whole generation back into the buyer pool, That's a lot more demand, which is going to drive prices up. So if your goal is to make housing more affordable, you just made it less affordable because the payment might look like it's coming down, but the house prices are going to increase because more people are fighting over a limited commodity. It's just how numbers work, y'all.
