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“Whenever you find yourself on the side of the majority, it is time to reform (or pause and reflect).”
― Mark Twain
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50-Year Mortgages, Tariff "Dividends", and Zero Real Solutions Coming
Crazy thing about politics, nothing has to make sense. No politician should be allowed to suggest or make economic decisions, but they do.
A Truth Social post from President Donald Trump sparked discussion among homebuyers after he proposed creating a 50-year mortgage, comparing it to President Franklin D. Roosevelt’s introduction of the 30-year loan. FHFA Director Bill Pulte confirmed on X that the agency is exploring the idea, calling it a “game changer,” though the White House has not commented.
Experts note that such a mortgage would require Congress to repeal parts of the Dodd-Frank Act, which currently limits loan terms under the Qualified Mortgage rule. Analysts caution that extending loan terms could worsen affordability issues and reduce equity growth, arguing that the 30-year mortgage remains the best option.
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Trump proposes 50-year mortgage to help affordability https://t.co/6uHpxgKy9w
— Pulte (@pulte) November 8, 2025
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The appeal is mixed for homeowners. Those with low fixed rates from 2020 to 21 won’t swap for longer debt, while borrowers stuck with higher rates might shave a few hundred dollars off monthly payments but remain in debt well into retirement. Extended terms can help some families avoid foreclosure, yet they push financial risk further into the future.
Economically, longer mortgages treat housing as a payment issue rather than a supply one. History, from Japan’s 1980s boom to Canada’s brief 40-year experiment, shows that longer terms inflate prices, expand eligibility, and shift risk to households or taxpayers. They also create system vulnerabilities such as longer-duration loans are harder to hedge and more exposed to interest-rate shocks.
True affordability requires increasing housing supply, not stretching debt. Zoning reform, faster permitting, workforce development, and wage growth would make homes genuinely affordable. Maybe California could take the lead on this one? :) A 50-year mortgage, by contrast, only delays the pain—making borrowers “tenants of their own debt” while prices keep climbing.
Welcome to the new Silent Depression. The average age of first-time homeownership is now approaching 40 (see social media post1). Generation Z, no better educated in real-world economics than the generations before it, struggles to understand why capital continues to flee toward safe havens rather than productive investments, and why a steady stream of government interventions, rebates, and so-called “dividends” can’t reverse these trends (see social media post2). Younger generations view the problem as failing capitalism, but this understanding trivializes the problem of infinite government spending that attempts to abort the self-correcting business cycle of capitalism. Governments cannot spend and borrow to infinity with no attention of paying it back without consequences. This economic reality affects all the economic ISM people believe is the best.
Rhetoric and activism, while understandable from a standard of living point of view, won’t solve these challenges. Real solutions begin with understanding. Encourage your younger family members to start learning on Insights, before the invisible hand teaches them, and their parents, through hardship.
Social Media Post 1
Social Media Post 2
Herbert Hoover warned us through observational economics that official policies are of little value against the ravages of the invisible hand.
War in Ukraine is no accident. We discuss this and a lot more in all our subscriber reports.
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