What’s New?

November 10, 2025

Another week in the life of this administration, and what is new?

President Trump’s Promise to send $2,000. to each American:

Over the week-end President Trump posted on “Truth Social” that he promised to send $2,000. to each American, except those considered “highly wealthy.” These funds were going to come from the tariff revenue that he has imposed this year.

Obviously, he hadn’t communicated with his Secretary of the Treasury, Scott Bessent. During Mr. Bessent’s appearance on ABC’s “This Week,” he stated that he hadn’t spoken to Mr. Trump concerning this, but that this could come in the form of tax decreases, and not direct payments.

A Pew Research Study from 2024, indicated that there were approximately 274 million people in America that are considered low and middle income. Using that number, and a $2,000. payment to each, the total payout would amount to $ 548 billion.

Tariff revenue for the first 9 months of 2025 is estimated to be $195 billion. The $64,000 question is, “where is the additional $353 billion coming from?”

Obviously, there is a deficit not only in “critical thinking,” but in “basic math.”

Tariff’s are paid by those organizations that import products subject to the tariff. At some point they are no longer able to absorb those costs, and thus they get passed on to the consumer, you and me. We then are the ones that are out of pocket for these tariffs. If there were a rebate to us, we would hope to be made whole. If this happened, what is imposing a tariff accomplishing? Nothing!

I would not hold my breath waiting for a check to arrive anytime soon. As one of my former math professor’s would say, “this is fuzzy math!”

It should also be noted that there is a question of the “legality of the tariff’s,” that President Trump has assessed, This is still not resolved. There are two cases before the U.S. Supreme Court that will answer that, but probably not until the Spring of 2026.

50 Year Home Mortgage!

Over the week-end, President Trump also floated the idea of a 50 year home mortgage. His Director of the Federal Housing Finance Agency, William Pulte, indicated that the White House was studying whether to introduce a 50 year mortgage.

Mr. Pulte is 37 years of age, and the Grandson of the founder of the Pulte Group, William J. Pulte. The Pulte Group is a major residential home construction organization. Prior to joining the Trump Administration, Mr. Pulte had his own investment banking organization.

Housing prices have continued to escalate over the past 20 years, to the point where affordability is a major issue . Interest rates for a 30 year home mortgage are hovering in the 6% range, and the average age of the first time homebuyer is now 40.

The average price of a home today is in the $450,000. range. If we assume that the normal terms for a 30 year mortgage are 20% down, then a 30 year mortgage of $ 360,000. @ 6% would result in a monthly principal and interest payment of $2,158.38. If one were to stay in this home for the full 30 years, total payments would amount to $777,016.80, and interest would amount to $417,016.80 of that amount.

If we assume the same amount financed, $360,000., at the same interest rate of 6%, but over 50 years, the monthly payment of principal and interest would amount to $1,895.06. Over 50 years, the total amount paid would amount to $1,137,036., and interest would amount to $777,036. of that amount.

There would probably be a fractional difference in the interest rate, but for this discussion, our assumptions and results are relative.

From the calculation above, the difference in the monthly payment of principal and interest, on a 30 year mortgage, versus a 50 year mortgage is only $263.32.

Is that enough to move the needle? Many think not. It appears the biggest issue in the housing market today is “affordability.” That is directly related to “supply & demand.” Supply is limited, and as a result, that tends to keep prices high.

Those who refinanced, or were able to get mortgages at a 3%+ rate a few years ago, are not trading up, and therefore not selling. People are not as mobile today, as they were 20 or 30 years ago. All of this has had an impact on supply. The economic axiom of “Supply & Demand” is at work. Less supply than demand , higher prices! In addition, homebuilders have reduced the number of new homes that they are bringing to market. Again, impacting supply.

ChatGPT (AI) indicates that there are currently 86 million mortgage loans outstanding with a balance of approximately $12.94 trillion. ChatGPT also indicates that 75 to 80 million are 30 year loans. They could not find any credible data indicating how many go for the full 30 years. However, they believe that it is approximately half.

Will a longer term make a difference? Most industry specialists don’t believe so.

A 50 year mortgage is not an advantage.

The equity build up for a 30 year loan versus a 50 year loan is faster. As an example, using the loan numbers from above, the outstanding mortgage balance, at the end of 10 years, for a 30 year loan, is $301,268.61. For a 50 year mortgage that number is $344,422.08. The difference of over $43,000., is significant.

The feedback from the public on a 50 year mortgage has been universally “negative.” It isn’t the answer to the housing industry problems. In fact, there are so many factors affecting the housing industry, that a 50 year mortgage is definitely not the answer.

Public IPO for Freddie Mac & Fannie Mae:

Since the 2008 financial crisis, these two government sponsored organizations have been operating under a “conservatorship” of the U.S. Government. In 2008, the Government bailed them out of their financial problems. These two organizations are estimated to back 70% of the home mortgage market today.

The Federal Housing Finance Director, William Pulte, has indicated that President Trump is considering taking them public as early as next year. Currently, shares of each, trade over the counter. It is estimated that the market value of both together, is greater than $20 billion today. Under an IPO, some believe their value could be as much as $500 billion.

If they were taken public in an IPO, many housing industry leaders believe that there would be greater risk, with respect to home mortgage loans, as the government would no longer back up these organizations obligations. They also believe that home mortgage rates would increase.

As to the government, additional funds could be generated that could assist in funding the governments operating deficit. Is that adequate?

Only time will tell!

Current Government Shutdown:

Today, it appears that there may be a way forward to resolving the “government shutdown.” However, healthcare subsidies under the” Affordable care Act (ACA)” are still unresolved. There is no guarantee that they will continue for some 22 million Americans in 2026. In President Trump’s first term in office, he indicated that he had a “healthcare bill” that would replace the ACA. It has never seen the “light of day,” and many believe that it doesn’t exist.

Healthcare is an issue that affects all. It is said that the average annual cost, for a family of 4, is over $25,000. Companies cannot afford that as a benefit, and most individuals cannot afford that. Even under the ACA, the deductibles are high -$9,000 to $10,000. – and co-pays are also high.

My wife and I have regular Medicare, with a supplemental policy. Our supplemental policy, which covers the 20% that Medicare doesn’t, cost each of us over $300.00 monthly or $600.00 in total.

My wife recently received an “explanation of benefits (EOB)” statement from her Supplemental Carrier, United Healthcare, for a metabolic blood test at UVA Health on September 17,2025. UVA billed $1,325. and Medicare approved $63.67 and paid $53.61. Her supplemental plan paid $10.06.

What is wrong with that picture? If we had no insurance, we would be responsible for the entire $1,325. There is no question that the healthcare system in this country is broken. There is no easy fix either. The ACA was a beginning, but it isn’t enough. When will our politicians wake up and tackle the real issues facing all of us? The economy, healthcare, and immigration would be a start. ICE needs to take a break. They are only making everything worst.

The thing that I see with our current politicians, is that most have never held a “real” job. They don’t understand the issues facing everyday Americans. As a result, they really have no idea what legislation is necessary.

I guess that is enough for now. Stay the course, and remember, you have the power on each and every election day. Use it!

Jess Sweely

Madison, Va.