Trump's Housing Shift Could Trap Millions — Don’t Be One of Them
Published: 2025-11-26
Status:
Available
|
Analyzed
Published: 2025-11-26
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 12
Prediction
Topic
Status
US housing ownership started declining in 2025.
"For the first time in a decade, housing ownership in the United States officially began falling in 2025."
Incorrect
Home ownership in the US fell in September 2025, marking the first such decline in approximately ten years.
"In September 2025, we got the news that home ownership in the United States is falling for the first time in about a decade."
Incorrect
The price of a specific house increased by 40% from 2020 to 2025, reaching $500,000.
"By 2025, things changed quite a bit. If you wanted to buy that exact same house in 2025, now it's going to cost you about $500,000 because it's now 40% more expensive to buy the exact same house."
Pending
The monthly mortgage payment for a house in 2025 is approximately $2,500, a 100% increase compared to 2020.
"So, if you got the same 30-year mortgage of 20% down here, now your monthly mortgage payment is going to be about $2,500 a month, which is an increase of around 100% on your monthly payment."
Incorrect
Median wages in the US increased by approximately 22% over a five-year period ending in 2025.
"Well, over these same five years, we have seen wages, the median wage in the United States rise by around 22%."
Incorrect
A 10% drop in home values could lead to widespread negative equity and a subsequent rise in foreclosures in the US.
"If home values were to go down by just 10%... Well, that would mean that a lot of people now are suddenly underwater on their houses. They have negative equity. And then the concern would be if people don't have equity in their houses, we would see a rise of foreclosures in the United States."
Incorrect
Foreclosures are currently increasing in the US due to insufficient homeowner equity and unaffordable monthly payments.
"And that's what we're already starting to see happen right now in the United States as foreclosures are starting to rise because people didn't have enough equity in their houses or they couldn't afford the monthly payments on their houses."
Correct
A 50-year mortgage, at a 6.5% interest rate, would result in a monthly payment of $2,250, saving $250 compared to a 30-year mortgage.
"If you could go out and get a 50-year mortgage, and for the purposes of this example, let's just assume that you get the same 6 and a half mortgage rate on this 50-year mortgage. Now, your mortgage payments are not going to be $2,500 a month. They're going to be $2,250 a month."
Incorrect
A 50-year mortgage on a $500,000 house would result in a total cost of $1.35 million, with $850,000 in interest payments.
"Now, when you have this 50-year mortgage, you're not going to pay $900,000 to buy the house. ... you're going to end up paying $1.3 million, actually $1.35 million to purchase the house, which means you paid $500,000 for the house plus an additional $850,000 in interest to purchase the house."
Pending
A drop in mortgage rates to 4% would likely lead to an increase in buyer demand, potentially causing bidding wars and driving up housing prices due to a lack of supply.
"If mortgage rates fell to 4% tomorrow, what do you think is going to happen? Probably a lot of people are going to want to go out and take advantage of these lower mortgage rates. They're going to want to take advantage of the cheaper cost to own a home month over month. So now if we have a new influx of buyers into the housing market without a new influx of supply, that could potentially create now bidding wars in the housing market, which could potentially lead to higher prices in the housing market."
Correct
AI automation is making it increasingly difficult for average individuals to secure jobs and build wealth.
"It is getting harder than ever for the average person to get a job and build wealth because traditional entry-level skills are now being automated by AI."
Correct
The shift towards AI automation is predicted to create more millionaires than ever before for ambitious individuals.
"But this is the silver lining because for those of you that are go-getters that want to go the extra mile, this shift is going to create more millionaires than ever before."
Pending
US housing ownership started declining in 2025.
"housing ownership in the United States officially began falling in 2025."
Correct
The Trump administration proposed 50-year mortgages to increase housing affordability.
"And to help fix this problem, the Trump administration recently proposed a 50-year mortgage as a way to make housing more affordable for millions of Americans."
Incorrect
President Trump is encouraging increased housing construction to address affordability.
"President Trump has been pushing construction companies and developers to build more houses and develop more housing as a way to create more housing in the United States."
Correct
The price of a typical house increased by 40% between 2020 and 2025, reaching $500,000.
"Well, by 2025, things changed quite a bit. If you wanted to buy that exact same house in 2025, now it's going to cost you about $500,000 because it's now 40% more expensive to buy the exact same house."
Incorrect
Foreclosure rates are rising due to insufficient equity and unaffordable monthly payments.
"And then the concern would be if people don't have equity in their houses, we would see a rise of foreclosures in the United States. And that's what we're already starting to see happen right now in the United States as foreclosures are starting to rise because people didn't have enough equity in their houses or they couldn't afford the monthly payments on their houses."
Correct
Cheaper mortgages and housing prices could lead to increased demand, bidding wars, and renewed housing market inflation.
"So, we know that cheaper houses can help make housing more affordable, but there's a consequence that that could lead to an economic downturn. We know that cheaper mortgages, whether it's a 50-year mortgage or a 3 and a half% mortgage rate, can lead to cheaper mortgage payments, but the consequence to that is that could lead to more people wanting to buy a house, which could then inflate the housing market again because that could lead to more bidding wars and higher housing prices again."
Correct
Over the past 5 years, wages have increased by 22%, while housing prices have risen by 40% and the monthly cost of homeownership by 100%.
"We know that well wages have gone up by 22% over the last 5 years. Well, housing prices have gone up by 40%, while the monthly cost of home ownership has gone up by 100%"
Incorrect
AI automation of entry-level jobs will make it harder to build wealth, but will also create more millionaires by enabling motivated individuals to go the extra mile.
"It is getting harder than ever for the average person to get a job and build wealth because traditional entry-level skills are now being automated by AI. But this is the silver lining because for those of you that are go-getters that want to go the extra mile, this shift is going to create more millionaires than ever before."
Pending
The Trump administration is discussing measures to address the housing affordability crisis.
"And this is where the Trump administration has discussed a number of different things to help fix the affordability crisis and make housing a little bit more affordable."
Pending
President Trump has proposed declaring a national emergency in the housing market to enable executive actions without Congressional approval.
"President Trump has talked about declaring a national emergency in the housing market. That way, the president can do more things without approval of Congress."
Incorrect
President Trump is encouraging construction companies and developers to increase housing supply.
"President Trump has been pushing construction companies and developers to build more houses and develop more housing as a way to create more housing in the United States."
Pending
President Trump has proposed a 50-year mortgage to reduce monthly payments and increase housing affordability.
"And now, most recently, President Trump has proposed a 50-year mortgage to make mortgage payments cheaper for more people to go out and buy a house."
Incorrect
A 10% decrease in home values could lead to negative equity for homeowners and a subsequent rise in foreclosures.
"The problem with that is if home values were to go down by just 10%. Well, that would mean that a lot of people now are suddenly underwater on their houses. They have negative equity. And then the concern would be if people don't have equity in their houses, we would see a rise of foreclosures in the United States."
Pending
Concerns exist about a potential housing bubble, where individuals who cannot afford their homes may face issues if prices fall.
"And this is where the concerns about a housing bubble really start to rise where oh my god, a lot of people have houses who shouldn't afford them. And what happens if housing prices fall? People can't afford it. That's the concern and that's the negative side of housing prices falling."
Correct
A significant fall in housing prices, as seen during the 2008 financial crisis, can lead to severe financial meltdowns.
"And we have seen the impacts of that because when housing prices fell during the 2008 great financial crisis, it created a huge financial meltdown which almost destroyed our entire financial system."
Incorrect
The government is considering a 50-year mortgage as an alternative to the standard 30-year mortgage to reduce rates.
"And the other way is the government can say instead of having a 30-year mortgage, how about a 50year mortgage as a way to lower mortgage rates?"
Correct
A 50-year mortgage, while lowering monthly payments by $250, significantly increases the total interest paid over the life of the loan, from $400,000 on a 30-year mortgage to $850,000 on a 50-year mortgage for the same $500,000 house.
"If you could go out and get a 50-year mortgage, and for the purposes of this example, let's just assume that you get the same 6 and a half mortgage rate on this 50-year mortgage. Now, your mortgage payments are not going to be $2,500 a month. They're going to be $2,250 a month. So, you're going to save $250 every single month. But... you're going to end up paying $1.3 million, actually $1.35 million to purchase the house, which means you paid $500,000 for the house plus an additional $850,000 in interest to purchase the house."
Correct
Mortgage payments are front-loaded, with a larger portion going towards interest in the early years of the loan.
"Because these mortgages are amortized, meaning they're front-loaded. Meaning, in the beginning of your mortgage, almost all of your mortgage payment is interest. Very little is actually buying principal or equity in the house."
Correct
Extending mortgage terms to 50 years results in more interest payments, benefiting the lender.
"And so now when you extend the mortgage to 50 years, you're going to have a lot more money going in interest and that money is going to be going into the banker's pocket during the beginning part of that mortgage."
Correct
Wealth is built by acquiring assets specifically for the purpose of generating income, such as stocks, rental properties, startups, gold, or cryptocurrency.
"For you to become wealthy, you need to own an asset that I buy for the purpose of making money. That could be stocks, it could be rental properties, it could be startups, it could be gold, it could be crypto, it could be a whole lot of things, but these are things that are buying for the sole purpose of making money."
Correct
A home should be viewed as a liability, and potential buyers must assess their ability to afford the down payment, mortgage, and associated moving costs.
"So, when it comes to your house, think of it from a liability perspective. Can you afford the house? Can you afford the down payment? Can you afford the multi payment? Can you afford the moving cost?"
Correct
Building wealth does not necessitate homeownership; owning income-generating investments outside of one's primary residence is crucial for wealth accumulation.
"You don't have to own a house to build wealth. There's many ways to do that. You need to own investments to build wealth. And your house is not the only investment opportunity out there. If you really want to become wealthy, you have to do it outside of your house because, well, even if you pay off your house, you still have expenses to pay."
Correct
AI automation is making it more difficult for individuals to secure jobs and build wealth by replacing traditional entry-level skills.
"It is getting harder than ever for the average person to get a job and build wealth because traditional entry-level skills are now being automated by AI."
Correct
The shift caused by AI automation is expected to create more millionaires than ever before for proactive individuals.
"But this is the silver lining because for those of you that are go-getters that want to go the extra mile, this shift is going to create more millionaires than ever before."
Pending