If that is correct then mass adoption of the 50 year could raise the overall price of housing by 13% at current interest rates and become scalable to increased/decreased rates. That is the kind of thing I fear and that is what can make housing prices stay fundamentally higher than what people should believe they are worth. If you think back to the 50’s when car loans were pretty scarce the price of a car was really low compared to todays standards. Now that most everyone finances purchases and interest rates are low it allows manufacturers to charge more for cars and keep sales up. Nice cars (SUVs now) are a sign of status and the industry has been milking that to no end. Housing has been the same and if the 50 becomes a preferred product based on better affordability then that will absorb some of the declines we expect to see in the near term. I don’t want a 50 and I don’t want my kids to be paying off my house when I’m dead. That kind of sucks.
