Before We Turn the Page on 2025

(from CNBC.com)

After 2025 finally calmed the housing market down, affordability is quietly improving but buyers are still stuck at the starting line.

Home prices are basically flat year over year (up just 0.3%), mortgage rates have slid to about 6.19% and inventory is up roughly 12% from last year. On paper, that’s progress. Monthly payments are actually about $200 cheaper than they were a year ago on a median-priced home, which matters.

The problem is the down payment. The typical buyer still needs around seven years to save one, which is better than the brutal 12-year peak in 2022, but still way worse than pre-pandemic norms. So while the market is more balanced and less chaotic, the upfront cash hurdle is keeping a lot of first-time buyers on the sidelines.

The good news? Buyers are starting to test the waters again, with pending home sales hitting their highest level in nearly three years. The vibe right now isn’t “cheap,” but it is finally starting to feel… doable.

Read more here

The 50-Year Mortgage Is Still ALIVE??

(from National Mortgage News)

Just as the housing market finally settles down, HUD is still kicking the tires on one of its most controversial ideas: the 50-year mortgage.

Officials say it’s still “on the table” heading into 2026, but everyone involved agrees it needs more homework. The pitch is simple: longer loan term, lower monthly payment. The catch is also simple: higher rates, way more interest over time and zero real precedent in the U.S. market.

At current estimates, a 50-year loan might lower payments by roughly $200 a month on a $400K loan, but that benefit shrinks once higher rates are baked in. Industry pros also worry it could quietly push prices higher by boosting demand in already tight markets.

The bigger takeaway isn’t that a 50-year mortgage is coming tomorrow, it’s that policymakers are clearly searching for affordability fixes that don’t involve crashing prices.

Read more here