President Donald Trump‘s proposal to introduce 50-year mortgages could pose significant financial risks for both homeowners and lenders, according to Mark Zandi, the chief economist at Moody’s Analytics.Longer Terms, Higher Financial RisksIn an interview with Newsweek, Zandi pointed out that borrowers opting for a five-decade loan would struggle to accumulate equity, with most payments in the initial decade going toward interest rather than principal. He said that this could leave homeowners with minimal fi ...

Mortgage rates ticked up slightly this week but remain in the narrow band they’ve been stuck in since early October. The average 30-year mortgage rate was 6.26% this week through Wednesday, according to Freddie Mac data, up from 6.24% a week earlier. The average 15-year mortgage rate rose to 5.54%, from 5.49%. “Mortgage rates remain near their lowest level in more than a year, but affordability continues to be strained,” Hannah Jones, Realtor.com’s senior economic research analyst, said in a statement. ...

Core Viewpoint - President Trump's proposal for 50-year mortgages aims to make homebuying more affordable by lowering monthly payments, but critics argue it misdiagnoses the housing market's main issue, which is the shortage of homes for sale [2][5][11]. Summary by Sections Proposal Details - The 50-year mortgage could reduce monthly payments by approximately $100 on a median-priced home, but it may also slow down the rate at which homeowners build equity [5][7]. - The proposal suggests that extending the mortgage term could make the American dream of homeownership more accessible [2]. Financial Implications - A 50-year mortgage would likely come with higher interest rates compared to 30-year loans, potentially increasing overall costs for borrowers [6][12]. - For a median-priced home of $415,000, a buyer would pay about $2,098 monthly for a 30-year loan at a 6.50% rate, while a 50-year loan at an estimated 7.00% rate would lower the payment to about $1,998 [7][8]. Equity Building - The longer repayment period of a 50-year mortgage results in significantly slower equity accumulation. After 10 years, a borrower on a 30-year mortgage would have paid down about $50,000 in principal, compared to only $10,000 for a 50-year mortgage [9][10]. - After 20 years, the equity gap widens to approximately $115,000 less for the 50-year borrower [10]. Market Analysis - Economists emphasize that the primary issue affecting home affordability is the lack of available homes, with estimates indicating a shortfall of 3 to 4 million homes in the U.S. [11]. - Critics warn that the introduction of 50-year mortgages could exacerbate the housing supply problem by increasing demand without addressing the underlying supply issues, potentially driving home prices higher [13].

Bill Pulte, the Federal Housing Finance Agency director, said the administration is “actively evaluating portable mortgages” just days after President Donald Trump’s call for 50-year mortgages fell flat with industry and consumers. Pulte didn’t give any details on how the plan would work in his social media post on Wednesday. In theory, a portable mortgage would allow a homeowner to transfer their current mortgage rate from one home to another. Most Read from Bloomberg Portable mortgages could help loos ...

Core Insights - The Trump administration's proposal for a 50-year mortgage aims to enhance housing affordability but may lead to significantly higher interest payments over the loan's life [1][3][5] Mortgage Analysis - A UBS analysis indicates that extending the mortgage term from 30 to 50 years could lower monthly payments on a median-priced home by approximately $119, but would double the total interest paid over the loan's duration [2][3][5] - The average borrower could incur an additional $389,000 in interest over the life of a 50-year mortgage compared to a 30-year mortgage [5] Financial Implications - For a median-priced home valued at $420,000, a 12% down payment would result in a loan amount of $369,600, with a standard 30-year mortgage at a 6.33% interest rate leading to a monthly payment of $2,295 [6] - The proposed 50-year mortgage would have a higher interest rate of 6.83%, but would reduce the monthly payment to $2,176, increasing the average consumer's buying power by nearly $23,000 [7] Structural Challenges - The viability of the 50-year mortgage is complicated by the current conservatorship of Fannie Mae and Freddie Mac, which may affect the purchase and securitization of these longer-term loans [8] - Amending the Dodd-Frank Act to classify 50-year mortgages as qualifying loans may be challenging, potentially resulting in higher interest rates compared to 30-year loans [8] Housing Market Conditions - The housing market is experiencing significant inefficiencies, with affordability at its lowest since the mid-1980s and a structural shortage of 7 million homes in the U.S. [10] - UBS suggests that direct government investment in housing infrastructure, particularly through the use of manufactured wall panels, could be a viable solution to improve housing conditions [9][11] Political Reception - President Trump has downplayed the significance of the 50-year mortgage proposal, indicating it may not be a priority amid concerns from his voter base [12]

Core Viewpoint - United Homes Group, Inc. (UHG) reported a significant decline in earnings for the third quarter of 2025, with a net loss widening to $31.3 million, reflecting challenges in home closings and increased non-cash losses from derivative liabilities [2][12] Financial Performance - Revenue for Q3 2025 fell 23.5% year-over-year to $90.8 million from $118.6 million, primarily due to a 28.9% decline in home closings [2][4] - The net loss for the quarter was $31.3 million, or $0.53 per diluted share, compared to a loss of $7.3 million, or $0.15 per diluted share, in Q3 2024 [2] - Gross margin contracted to 17.7% from 18.9%, while adjusted gross margin slipped to 19.6% from 20.6% [3][5] - Adjusted EBITDA for the quarter decreased 57.5% to $3.8 million from $8.9 million, with the adjusted EBITDA margin contracting to 4.2% from 7.6% [6] Operational Metrics - For the first nine months of 2025, revenue declined 13.9% to $283.3 million, and home closings dropped 19.7% to 817 [4] - Net new orders eased 4.9% to 324 from 341 a year earlier, although the average sales price of production-built homes rose about 8.1% to $346,000 [3][5] - The company reported a backlog of 264 homes valued at approximately $94.3 million, indicating a 20% increase in backlog value year-over-year [7] Market Conditions - Closings dropped broadly across key markets, with a 45.6% decline in the Midlands region and a 22.2% decline in the Raleigh region [8][11] - Management attributed the quarter's performance to affordability challenges and a choppy housing market, but noted sequential improvement in September [9][13] Strategic Developments - United Homes concluded a review of strategic alternatives, deciding to continue as an independent public company, which led to several director resignations [14] - The company is focusing on operational efficiencies, cost savings, and maintaining a disciplined approach to pricing and incentives [10][13]

Core Insights - The announcement by FHFA Director Bill Pulte indicates that Fannie Mae and Freddie Mac will remain in conservatorship, alleviating concerns about rising mortgage rates due to potential exits from conservatorship [3] - A new 50-year mortgage option is being considered to help improve housing affordability, with the government planning to sell up to 5% of shares back to the public [3] Mortgage Rate Implications - A 50-year mortgage is expected to carry a higher interest rate, estimated to be 42 to 57 basis points above the standard 30-year fixed mortgage rate [7][8] - The average 30-year fixed mortgage rate was reported at 6.22%, suggesting a potential 50-year mortgage rate between 6.64% and 6.79% [8] Monthly Payment Analysis - The primary advantage of a 50-year mortgage is lower monthly payments, with a $400,000 mortgage at 6.22% resulting in a monthly payment of approximately $2,455 for a 30-year term, compared to about $2,297 for a 50-year term, yielding a savings of roughly $158 per month [9][10] Long-term Financial Considerations - Borrowers using a 50-year mortgage would pay significantly more in total interest, with an estimated total interest payment of around $980,000 compared to $483,000 for a 30-year mortgage [14] - The slower pace of principal repayment in a 50-year mortgage means homeowners build equity much more slowly, with only about 9% of the balance paid off after 10 years compared to 20% for a 30-year mortgage [16] Market Demand and Public Sentiment - The introduction of a 50-year mortgage could create some additional housing demand, but it is unlikely to be substantial due to the current housing market conditions [19] - Early polling indicates that public sentiment towards the 50-year mortgage is largely unfavorable, which may hinder its implementation [20]

Core Viewpoint - The introduction of a 50-year mortgage could provide short-term savings for home buyers but may lead to higher long-term costs and risks in the housing market [2][3][4]. Group 1: Mortgage Structure and Implications - A 50-year mortgage could save borrowers approximately $280 monthly on a $400,000 loan at a 6.3% interest rate compared to a 30-year loan [4][5]. - If held to maturity, borrowers would pay over $425,000 more in interest with a 50-year mortgage than with a 30-year mortgage, exceeding the initial loan amount [5][6]. - The typical first-time home buyer's age reached 40 years as of June 2025, indicating a trend towards older buyers in the current housing market [4][7]. Group 2: Market Dynamics and Challenges - The suggestion of a 50-year mortgage highlights the ongoing challenge of addressing high home purchase costs in an unaffordable housing market, where both mortgage rates and home prices have risen significantly [3][6]. - A longer loan term could potentially lead to increased home prices, as it may subsidize demand without addressing supply issues, negating any savings from lower monthly payments [6][7]. - Homeowners' equity growth would be slower with a 50-year mortgage, with less than 4% of the principal paid off after ten years compared to nearly 16% for a 30-year mortgage [6].

New York City's mayoral election was fought and won largely on the issue of affordable housing. It's easy to understand why. According to realtor.com, the median asking rent in New York City accounted for 55% of a typical household income, which is well above the commonly accepted 30% affordability threshold. End quotes. Households that spend more than 30% of their income on rent are considered costburdened by the government.New York City is America's most expensive city, but home affordability is not just ...

Group 1 - Jack in the Box divested Del Taco for $115 million, significantly less than the $575 million it paid for the chain less than four years ago [3] - Yum Brands is considering divesting the struggling Pizza Hut chain, which has seen its market share decline from nearly 23% in 2019 to 18.7% last year, with sales continuing to decline into 2025 [3] - The US National Debt has surpassed $38 trillion, equating to $330,000 for every American taxpayer, with projections indicating another trillion dollars will be added before the end of 2026 [9][12] Group 2 - Nvidia has become the first company to reach a market value of $5 trillion, surpassing the market capitalization of six of the eleven sectors in the S&P 500 Index [15] - American households now hold 80% of their wealth in equities, an all-time high, which is even greater than during the Dot-com Bubble peak [18] - The Nasdaq index experienced a 3.1% decline, marking its deepest weekly loss since April, while the S&P 500 and Dow also finished the week lower [22]