Mohtashami: A 50-year mortgage wouldn't help the market much right now

Core Insights - The introduction of a 50-year mortgage is not expected to significantly benefit the housing market at this time [1][4] - A stable mortgage rate around 6% is seen as more favorable for stimulating housing sales [2][3][5] Group 1: Mortgage Market Dynamics - A 50-year mortgage may come with higher rates compared to a 30-year mortgage, potentially leading to initial savings but lacking in equity build-up [3] - The current housing market can function effectively with a 30-year fixed mortgage, provided mortgage rates remain in the low sixes [3][4] - The Federal Reserve's hawkish stance has previously impacted demand negatively when mortgage rates increased [4][7] Group 2: Housing Market Conditions - Active inventory in the housing market has increased, with price growth slowing and wage growth improving, which are positive indicators for the sector [6] - Historical trends suggest that the housing market tends to stabilize over time, supported by household formation and existing equity [6] - Builders are currently operating at sales levels comparable to 2019, within a sub-6% mortgage rate environment [6]