Rebel Capitalist News The Housing Market Just Changed Forever (What You Need To Know)
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Nov 10, 2025 Discussions highlight the pitfalls of proposed 50-year mortgages, revealing how they could inflate home prices and hurt buyer equity. The talk dives into government reliance on 30-year fixed loans and outlines significant hidden costs of longer mortgage terms. Trump's tariff dividend proposal is critiqued, showing that the burden of tariffs falls on Americans, not foreign exporters. The consequences of new stimulus measures are analyzed, linking them to inflation and diminished purchasing power, especially for younger generations.
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Long Mortgages Inflate Prices Not Affordability
- Extending mortgage terms (e.g., 50-year) appears to lower monthly payments but mainly transfers inflation and price appreciation to homeowners.
- George Gammon argues this would raise home prices, reduce equity buildup, and worsen affordability for young buyers.
30-Year Fixed Is A Government Construct
- Thirty-year fixed mortgages are a government-backed anomaly not a free-market product according to Gammon.
- He warns government involvement socializes losses and places future taxpayer risk on programs like Fannie and Freddie.
Check Equity Build-Up Before Backing Terms
- Avoid assuming longer mortgage terms meaningfully improve affordability because home prices will adjust upward.
- Consider equity buildup and interest paid over time before supporting longer-duration loans.