"NAR's research team made the news last week when we had some pretty headline making news about the average age of first-time homebuyers rising to 40, and soon after the 50-year mortgage was suggested, Newton said. While a 50-year mortgage can cut down a buyer's monthly mortgage payment by a few hundred dollars, the higher interest rate and longer term means buyers are paying even more in interest and it will take them longer to unlock the equity in their home."
"Although McGahn said NAR welcomes the interest in affordability and is happy to discuss modernizing loan products, the trade group's main focus when it comes to affordability is unleashing inventory, which she said will create more supply so more folks can have equity and can build generational wealth. This is what we think these government programs should be focused on, McGahn said."
NAR executives examined a proposed 50-year mortgage amid a rise in the average age of first-time buyers. The 50-year mortgage can reduce monthly payments by a few hundred dollars but typically carries higher interest rates, raises total interest paid, and slows equity accumulation. NAR supports modernizing loan products if they remain pro-consumer. NAR prioritizes increasing housing inventory to expand supply, help more households build equity, and enable generational wealth. NAR also plans advocacy around capital gains tax exemption changes and other policy options to advance affordability.
Read at www.housingwire.com
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