President Trump’s suggestions to allow 50-year mortgages for homeowners is running into a lot of skepticism. Many economists say it will only increase debt and not lower housing costs.
Trump floated the idea last week in a social media post. Extending mortgages from 30 to 50 years may lower payments but would increase the amount of interest paid on the loan.
Eastern Michigan University Economics Professor Chris Elias says it also doesn’t address the major issue facing Washtenaw County: the lack of housing stock that people can afford.
“It’s trying to reduce the monthly cost of the home. And what it probably will do, at least what economic theory would suggest it would do, would increase the demand for homes, which could potentially increase prices of homes and make homes even less affordable.”
Elias says the lack of supply is what continues to drive the housing crisis locally and across the country.
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