#interest-costs

#interest-costs

The average American households' share of federal borrowings is now equal to half the median price of their homes, and the figure's rising fast. Right now, teachers, nurses, store owners and IT workers (i.e. average Americans) aren't paying any of the interest on those tens of trillions, since the federal government's simply ramping the IOUs to cover the carrying costs. But that can't go on forever.

A 50-year mortgage sounds like the next big innovation in housing finance, a way to make homes affordable again in an era of high prices and stubborn interest rates. But the way I was raised and educated, financial independence and straight talk count. Having studied economics at Texas A&M, I see this for what it is: a long, expensive bet that lasts half a lifetime.

Is the key to making homeownership more affordable just giving buyers more time? That's the pitch from President Donald Trump, who proposed creating a 50-year mortgage. The social media post touting the idea also got a cosign from Federal Housing Finance Agency director Bill Pulte. He said a 50-year mortgage is being worked on and would be "a complete game changer."

The cost of owning a new car in America has reached a staggering milestone. With inflation, tariffs, and interest rates all converging, the average price of a new vehicle has surged to nearly $50,000, according to Bloomberg. For many drivers, that price tag feels out of reach unless payments can be stretched across longer time frames. As a result, the seven-year car loan is no longer unusual - it's becoming the new normal.