President Trump proposed a 50-year mortgage to make homebuying more affordable. FHFA director Bill Pulte said they are working on it, calling it a “game-changer.” Longer terms reduce monthly payments, but increase interest paid and lower equity gained. Analysts say it’s possible, but changes in regulations may delay implementation.
A 50-year mortgage could lower payments by $233 per month. But homeowners build equity slower and pay 40% more interest. However, the loan does not currently qualify under Dodd-Frank. Analysts believe lenders won’t offer it without policy changes. The rate on a 50-year loan would likely be higher than on a 30-year loan.
Realtors doubt a 50-year mortgage will significantly impact affordability. They suggest reversing tariff-induced inflation to lower rates on existing mortgages. The new product may depend on Fannie and Freddie remaining under government control. Trump administration plans to privatize them could be complicated by introducing a 50-year loan.
Historically low interest rates led to a surge in home prices, straining affordability. Home sales and mortgage demand have weakened as a result. First-time homebuyers are now older, with the average age rising from 28 in 1991 to 38 in 2024. Trump administration has urged builders to increase supply to ease prices. 1. The CDC announced a new mask mandate for all travelers on public transportation in the U.S. This rule applies to planes, trains, buses, and subways, regardless of vaccination status. The mandate aims to curb the spread of COVID-19 as cases rise.
2. The U.S. economy added 943,000 jobs in July, exceeding expectations. Unemployment fell to 5.4%, a significant improvement from previous months. The increase in hiring is a positive sign of economic recovery as businesses continue to reopen.
3. A massive wildfire in California has forced thousands to evacuate as firefighters struggle to contain the blaze. The Dixie Fire, now the largest in the state, has destroyed homes and threatened communities. Extreme heat and dry conditions have fueled the fire’s rapid spread.
4. Tropical Storm Fred is predicted to make landfall in Florida, bringing heavy rain and strong winds. Residents are advised to prepare for possible flooding and power outages. The storm is expected to weaken as it moves inland but could still cause significant damage.
5. The Tokyo Olympics are in full swing, with athletes from around the world competing in various events. Highlights include Simone Biles’ return to gymnastics, the U.S. women’s soccer team’s quest for gold, and new sports like skateboarding and surfing making their Olympic debut.
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1. Tesla announces plans to open a new gigafactory in Texas, creating thousands of jobs in the area. The factory will produce batteries and electric vehicles, further expanding the company’s production capabilities.
2. The Federal Reserve raises interest rates by 0.25%, citing concerns about inflation and a strong labor market. This is the first rate hike since 2018, as the central bank aims to control rising prices and maintain economic stability.
3. Apple unveils its latest iPhone model, the iPhone 13, featuring improved cameras, a faster processor, and longer battery life. The tech giant also introduces new colors and upgraded display technology to attract consumers.
4. Amazon announces plans to acquire MGM Studios for $8.45 billion, expanding its content library with popular franchises like James Bond and Rocky. The deal is expected to strengthen Amazon’s position in the competitive streaming market.
5. Facebook faces backlash over its handling of misinformation on the platform, as internal documents reveal the company’s knowledge of harmful content. Critics call for stricter regulations and transparency to address the spread of misinformation online.: Trump proposes 50-year mortgage, but homeowner savings could be minimal