By Luke Ramseth, The Detroit News

New car prices didn’t spike after President Donald Trump announced sweeping tariffs in the spring, as some experts and dealers projected.

But prices on many models are now pushing notably higher — and analysts said carmakers recouping Trump’s higher import costs is a key factor.

Consider a recent analysis that found automakers are implementing more aggressive price increases on 2026 model-year vehicles compared to when 2025s were hitting dealership lots last year.

Cloud Theory, which tracks car inventory on dealer websites across the country, found the average marketed price increase on 2026 models was nearly $2,000, compared to an approximately $400 uptick during last year’s model year changeover. This year, 23 models have at least a $2,000 price hike; last year there were just nine.

“What I think is different this year is you have a lot of cost increases that are $1,000 or $1,500 or more, $2,000 or more,” said Rick Wainschel, Cloud Theory’s vice president of data and analytics, whose analysis looked at 2026 models with at least 2,000 vehicles in inventory.

“I think that’s a big change and a big shift that’s occurred, and it’s hard to point to any other catalyst for that (except for) tariff costs that the OEMs have had to absorb for the last eight months, and will likely have to absorb going forward,” he said.

Any increase comes on top of average car prices that were already hovering around $50,000. Pair that with stubbornly high interest rates, and the average monthly car payment is now $766, according to Edmunds.com Inc., up more than 3% from a year ago. A record share of subprime borrowers has been falling behind on their auto loans this fall.

Yet the huge car sticker price increases tied to tariffs — which analysts originally warned might tally anywhere from an extra $5,000 to $15,000 per vehicle — haven’t come to pass.

Among the reasons: competitive pressures between rival automakers, concern over blowback from Trump, large pre-tariff vehicle inventories that gave companies a lag time before pricing adjustments were needed, as well as policy adjustments that reduced the pain of the tariffs themselves.

Automakers opted to absorb many of the extra costs in the near term.

But if you’re shopping for a new car right now or plan to in the coming months, experts said it is likely tariffs will cost you in one way or another, even if it’s tough to discern exactly how. Automakers haven’t been eager to publicly disclose any connection between tariffs and their pricing adjustments.

Vehicle destination charges — those mandatory fees for transporting the car to the dealership — are rising, revealing one area where automakers “might be trying to make up a little bit of the costs,” said Erin Keating, an executive analyst at Cox Automotive Inc.

There are also signs of automakers pulling features out of certain models in a bid to trim costs while holding the same sticker price, a phenomenon known as shrinkflation. And then there are indications of carmakers offsetting their tariff costs with higher 2026 model-year MSRPs.

“Automakers really held their prices throughout the ’25 model year, and we’re starting to see a bit (of an impact) in ’26,” said Stephanie Brinley, an auto analyst with S&P Global Mobility. “But it’s being wrapped up in different ways, so it’s very difficult to suss out.”

Car companies often adjust pricing on new model-year vehicles, whether due to minor repackaging of features and trim levels, or full overhauls that include new technology and freshened sheet metal. Brinley said that means there’s no clear way for consumers to figure out where those extra tariff costs might’ve been tacked on.

Keating agrees the tariff impacts have been hard to pin down. Average car prices have been rising steadily much of this year — with September reaching an all-time high above $50,000 — but she said some of that uptick would have been expected anyway because of normal inflation.

The analyst now feels confident those initial shocking projections of price hikes in the 10% to 15% range aren’t going to happen: “The market just won’t bear it,” she said.

Automakers appear to be settling into their new normal under Trump. They’ve secured at least some tariff relief on parts and vehicles imported from certain countries, while simultaneously feeling the benefits of Trump’s moves to loosen federal vehicle emissions and fuel economy standards.

A September J.P. Morgan report estimated combined tariff costs on vehicles and parts will amount to $41 billion in the first year, rising to $45 billion in year two and $52 billion in year three.

The bank expects automakers and consumers to ultimately share the burden equally, which could lead to a 3% increase in new vehicle prices: “This will hit consumers hard,” the report said, “especially as many are already struggling to afford new vehicles.”

Wainschel, the Cloud Theory analyst, said average prices listed on dealer websites have only increased a few hundred dollars per vehicle since the tariffs took effect in early April. But that’s because automakers have pushed an increasing number of affordable models and trims into the market, which has helped hold the overall average price down.

If the current mix of vehicle types listed for sale was the same as it was back in April, Wainschel said, average prices would, in fact, look approximately $1,300 higher now: “So there are some things that are masking the increases that are taking place, the segment mix being a big part of it.”

Brendan Harrington, president of Autobahn Fort Worth in Texas, which sells Porsche, BMW, Mini, Volvo, Volkswagen, Jaguar and Land Rover brands, said big price hikes didn’t occur early on as companies fretted over losing market share.

But now, carmakers are beginning to make larger changes in response to tariffs, he said, including trimming back slower-selling models and increasing MSRPs where they can. He said Porsche and Land Rover are two examples of brands that have upped prices in response to tariffs.

And carmakers are also passing through higher destination charges, he said — increases that are adding $200 to $300 to the cost of a car. Tariffs also are contributing to steadily rising costs for Harrington’s parts and service departments.

“Until now, every OEM has really tried to hold the line,” he said. “But we are seeing prices now come up.”

(Detroit News Staff Writer Grant Schwab contributed.)

©2025 www.detroitnews.com. Visit at detroitnews.com. Distributed by Tribune Content Agency, LLC.

The city of Trenton is hosting its first ever Noel Nights. The three-week event aims to bolster its local businesses and highlight extracurricular activities.

This is the first year Trenton has a Downtown Development Authority Director.  Angelia Pusino is a lifelong resident of Trenton and the city’s first Director of Downtown Development Authority.

The Metro’s Tia Graham spoke with Angelia about the three week long event, family friendly activities and what makes Trenton a tight-knit community. 

Listen to The Metro weekdays from 10 a.m. to noon ET on 101.9 FM and streaming on demand.

Subscribe to The Metro on Apple Podcasts, Spotify, NPR.org or wherever you get your podcasts.

Support local journalism.

WDET strives to cover what’s happening in your community. As a public media institution, we maintain our ability to explore the music and culture of our region through independent support from readers like you. If you value WDET as your source of news, music and conversation, please make a gift today.

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More stories from The Metro

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The Metro: Why cities should focus on depopulation, not gentrification

Sam Corey

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The post Detroit Evening Report: Duggan gives exit interview, discusses campaign for governor appeared first on WDET 101.9 FM.

By Craig Mauger, cmauger@detroitnews.com

A Michigan judge ruled against marijuana businesses in the state Monday, rejecting their arguments that a new 24% wholesale tax on their products, imposed by the Legislature as part of a road-funding deal, should be immediately blocked.

The Michigan Cannabis Industry Association has contended that the new tax should have required supermajority support from lawmakers during votes in October, which it didn’t get, because the policy amends a ballot proposal that voters approved in 2018 to legalize recreational marijuana and set a 10% tax on retail sales.

However, Court of Claims Judge Sima Patel said in her 28-page decision Monday that the new wholesale tax bill was “consistent” with the text of the ballot proposal, which recognized “other taxes.”

“Plaintiffs have not met the stiff burden of demonstrating that they will likely succeed on the merits,” Patel wrote of not granting a preliminary injunction against the new law.

For now, her ruling allows the new 24% tax to go into effect Jan. 1.

But it wasn’t an outright victory for the Legislature and Gov. Gretchen Whitmer’s administration.

Patel said there “remain questions of fact” whether the 24% wholesale excise tax interferes with the purposes of the 2018 ballot proposal. Patel noted the businesses had argued that voters “purposefully selected the 10% excise tax on retail sales to keep retail prices reasonable” and to diminish the illicit market.

“Discovery will be required to develop the evidence needed to support the parties’ positions in this regard,” Patel wrote, rejecting the state’s pursuit of a summary judgment against the businesses on the matter.

Patel set a scheduling conference for Jan. 13 but referenced “the high likelihood that both parties will seek an appeal to the Court of Appeals.” Whitmer appointed Patel to the Court of Appeals in 2022.

In reaction to the decision, Rose Tantraphol, spokeswoman for the Michigan Cannabis Industry Association, said the organization plans a “swift appeal.”

“We don’t believe the Court of Claims made the right call,” Tantraphol said. “While we are deeply frustrated by this ruling, I can tell you this: The fight is far from over.”

The wholesale tax was at the center of a road-funding compromise that ended a months-long budget standoff between Democrats and Republicans in the Capitol in October.

The nonpartisan Michigan House Fiscal Agency has projected the wholesale marijuana tax would create about $420 million in additional revenue for roads annually.

Under the state Constitution, to amend a voter-approved policy, three-fourths of the lawmakers in the House and Senate would have to support the change. While the new wholesale tax wasn’t added directly to the voter-approved law, the lawyers argued the tax’s passage effectively amended it.

The 24% new tax didn’t get three-fourths support in the House or Senate. In the Senate, only 19 of the 37 lawmakers supported it.

The Michigan Cannabis Industry Association represents about 400 licensed marijuana businesses. Last year, Michigan’s recreational marijuana retail sales came in at about $3.2 billion, according to monthly reports from the Cannabis Regulatory Agency.

By JOSH BOAK, Associated Press

WASHINGTON (AP) — President Donald Trump said Monday that he would allow Nvidia to sell an advanced type of computer chip used in the development of artificial intelligence to “approved customers” in China.

There have been concerns about allowing advanced computer chips to be sold to China as it could help the country better compete against the U.S. in building out AI capabilities, but there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.

The chip, known as the H200, is not Nvidia’s most advanced product. Those chips, called Blackwell and the upcoming Rubin, were not part of what Trump approved.

Trump said on social media that he had informed China’s leader Xi Jinping about his decision and “President Xi responded positively!”

“This policy will support American Jobs, strengthen U.S. Manufacturing, and benefit American Taxpayers,” Trump said in his post.

Trump said the Commerce Department was “finalizing the details” for other chipmakers such as AMD and Intel to sell their technologies abroad.

The approval of the licenses to sell Nvidia H200 chips reflects the increasing power and close relationship that the company’s founder and CEO, Jensen Huang, enjoys with the president. But there have been concerns that China will find ways to use the chips to develop its own AI products in ways that could pose national security risks for the U.S., a primary concern of the Biden administration that sought to limit exports.

Nvidia has a market cap of $4.5 trillion and Trump’s announcement appeared to drive the stock slightly higher in after hours trading.

By Luke Ramseth, lramseth@detroitnews.com

New car prices didn’t spike after President Donald Trump announced sweeping tariffs in the spring, as some experts and dealers projected.

But prices on many models are now pushing notably higher — and analysts said carmakers recouping Trump’s higher import costs is a key factor.

Consider a recent analysis that found automakers are implementing more aggressive price increases on 2026 model-year vehicles compared to when 2025s were hitting dealership lots last year.

Cloud Theory, which tracks car inventory on dealer websites across the country, found the average marketed price increase on 2026 models was nearly $2,000, compared to an approximately $400 uptick during last year’s model year changeover. This year, 23 models have at least a $2,000 price hike; last year there were just nine.

“What I think is different this year is you have a lot of cost increases that are $1,000 or $1,500 or more, $2,000 or more,” said Rick Wainschel, Cloud Theory’s vice president of data and analytics, whose analysis looked at 2026 models with at least 2,000 vehicles in inventory.

“I think that’s a big change and a big shift that’s occurred, and it’s hard to point to any other catalyst for that (except for) tariff costs that the OEMs have had to absorb for the last eight months, and will likely have to absorb going forward,” he said.

Any increase comes on top of average car prices that were already hovering around $50,000. Pair that with stubbornly high interest rates, and the average monthly car payment is now $766, according to Edmunds.com Inc., up more than 3% from a year ago. A record share of subprime borrowers has been falling behind on their auto loans this fall.

Yet the huge car sticker price increases tied to tariffs — which analysts originally warned might tally anywhere from an extra $5,000 to $15,000 per vehicle — haven’t come to pass.

Among the reasons: competitive pressures between rival automakers, concern over blowback from Trump, large pre-tariff vehicle inventories that gave companies a lag time before pricing adjustments were needed, as well as policy adjustments that reduced the pain of the tariffs themselves.

Automakers opted to absorb many of the extra costs in the near term.

But if you’re shopping for a new car right now or plan to in the coming months, experts said it is likely tariffs will cost you in one way or another, even if it’s tough to discern exactly how. Automakers haven’t been eager to publicly disclose any connection between tariffs and their pricing adjustments.

Vehicle destination charges — those mandatory fees for transporting the car to the dealership — are rising, revealing one area where automakers “might be trying to make up a little bit of the costs,” said Erin Keating, an executive analyst at Cox Automotive Inc.

There are also signs of automakers pulling features out of certain models in a bid to trim costs while holding the same sticker price, a phenomenon known as shrinkflation. And then there are indications of carmakers offsetting their tariff costs with higher 2026 model-year MSRPs.

“Automakers really held their prices throughout the ’25 model year, and we’re starting to see a bit (of an impact) in ’26,” said Stephanie Brinley, an auto analyst with S&P Global Mobility. “But it’s being wrapped up in different ways, so it’s very difficult to suss out.”

Car companies often adjust pricing on new model-year vehicles, whether due to minor repackaging of features and trim levels, or full overhauls that include new technology and freshened sheet metal. Brinley said that means there’s no clear way for consumers to figure out where those extra tariff costs might’ve been tacked on.

Keating agrees the tariff impacts have been hard to pin down. Average car prices have been rising steadily much of this year — with September reaching an all-time high above $50,000 — but she said some of that uptick would have been expected anyway because of normal inflation.

The analyst now feels confident those initial shocking projections of price hikes in the 10% to 15% range aren’t going to happen: “The market just won’t bear it,” she said.

Automakers appear to be settling into their new normal under Trump. They’ve secured at least some tariff relief on parts and vehicles imported from certain countries, while simultaneously feeling the benefits of Trump’s moves to loosen federal vehicle emissions and fuel economy standards.

A September J.P. Morgan report estimated combined tariff costs on vehicles and parts will amount to $41 billion in the first year, rising to $45 billion in year two and $52 billion in year three.

The bank expects automakers and consumers to ultimately share the burden equally, which could lead to a 3% increase in new vehicle prices: “This will hit consumers hard,” the report said, “especially as many are already struggling to afford new vehicles.”

Wainschel, the Cloud Theory analyst, said average prices listed on dealer websites have only increased a few hundred dollars per vehicle since the tariffs took effect in early April. But that’s because automakers have pushed an increasing number of affordable models and trims into the market, which has helped hold the overall average price down.

If the current mix of vehicle types listed for sale was the same as it was back in April, Wainschel said, average prices would, in fact, look approximately $1,300 higher now: “So there are some things that are masking the increases that are taking place, the segment mix being a big part of it.”

Brendan Harrington, president of Autobahn Fort Worth in Texas, which sells Porsche, BMW, Mini, Volvo, Volkswagen, Jaguar and Land Rover brands, said big price hikes didn’t occur early on as companies fretted over losing market share.

But now, carmakers are beginning to make larger changes in response to tariffs, he said, including trimming back slower-selling models and increasing MSRPs where they can. He said Porsche and Land Rover are two examples of brands that have upped prices in response to tariffs.

And carmakers are also passing through higher destination charges, he said — increases that are adding $200 to $300 to the cost of a car. Tariffs also are contributing to steadily rising costs for Harrington’s parts and service departments.

“Until now, every OEM has really tried to hold the line,” he said. “But we are seeing prices now come up.”

By DARLENE SUPERVILLE, Associated Press

WASHINGTON (AP) — President Donald Trump said Sunday that a deal struck by Netflix to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share.

“There’s no question about it,” Trump said, answering questions about the deal and various other topics as he walked the red carpet at the Kennedy Center Honors.

The Republican president said he will be involved in the decision about whether the federal government should approve the $72 billion deal. If approved by regulators, the merger would put two of the world’s biggest streaming services under the same ownership and join Warner’s television and motion picture division, including DC Studios, with Netflix’s vast library and its production arm.

The deal, which could reshape the entertainment industry, has to “go through a process and we’ll see what happens,” Trump said.

“Netflix is a great company. They’ve done a phenomenal job. Ted is a fantastic man,” he said of Netflix CEO Ted Sarandos, noting that they met in the Oval Office last week before the deal was announced Dec. 5. “I have a lot of respect for him but it’s a lot of market share, so we’ll have to see what happens.”

Asked if Netflix should be allowed to buy the Hollywood giant behind “Harry Potter” and HBO Max, the president said, “Well that’s the question.”

“They have a very big market share and when they have Warner Bros., you know, that share goes up a lot so, I don’t know,” he said. “I’ll be involved in that decision, too. But they have a very big market share”

Sarandos made no guarantees at their meeting about the merger if it is approved, Trump said, adding that the CEO is a “great person” who has “done one of the greatest jobs in the history of movies and other things.”

He repeated that a merger would create a “big market share” for the company.

“There’s no question about it. It could be a problem,” Trump said.

Associated Press writer John Carucci contributed to this report.

By Craig Mauger, cmauger@detroitnews.com

Michigan House Speaker Matt Hall said Friday he’s considering pursuing a new state commission or fee schedules to limit what hospitals can charge for their services, as part of a bid to lower health care costs.

The Kalamazoo County Republican made the comments during an appearance on WKAR’s “Off The Record” overtime segment while discussing his caucus’s priorities for the upcoming year. The speaker referenced the Michigan Public Service Commission, which currently gets to approve or alter rate increases proposed by gas and electric utilities that have monopolies within their service territories.

“I am looking at potentially proposing a new … public service commission, but for the hospitals, to regulate their price increases,” Hall said.

He added later, “We might need fee schedules.”

Hall’s comments came amid reports of rising health care costs nationwide and a push by some political candidates to focus on lowering medical bills and insurance premiums paid by their constituents. However, a new government panel to intervene in hospitals’ financial decision-making would represent a significant change for an industry that employs hundreds of thousands of Michigan residents.

Annual health spending in the U.S. increased by 62% from about $3 trillion in 2014 to about $4.9 trillion in 2023, according to data tracked by the Kaiser Family Foundation.

Brian Peters, CEO of the Michigan Health and Hospital Association, said Friday that his group “is always willing to engage in discussions that can improve affordability and reduce government intervention.”

“Hospitals remain committed to addressing rising healthcare costs,” Peters said. ”Insurance premiums are ultimately determined by insurance companies, not hospitals, while independent analyses show that prescription drug costs and administrative expenses are driving insurance premium inflation.”

The website of McLaren Health Care, which has 12 hospitals, describes billing, costs and charges as “very complex.”

“The price a patient sees on their hospital bill reflects not just the specific care team who treated them, but also overall operational costs that keep the hospital running 24 hours a day, 365 days a year,” the McLaren website says.

The Detroit News reported in October that Blue Cross Blue Shield of Michigan was hiking its small group insurance premiums an average of 12.4% next year for its Blue Care Network HMO plans. In the individual market, state regulators allowed Blue Cross to hike its premiums by 24%, as three insurers stopped selling so-called “Obamacare” plans in Michigan.

In an interview in October, Tricia Keith, Blue Cross’s CEO, referenced a study by the RAND Corp. that concluded hospital mergers gave the health systems more negotiating power with insurers, increased patient volume for services, reduced competition and contributed to increased health care spending.

“We are concerned with (hospital) consolidation because there are a number of studies that have come out and shown — the RAND study, for instance — that hospital consolidation does drive up prices,” Keith said.

More: Q&A: Blue Cross CEO Tricia Keith on what’s driving double-digit health insurance increases

During his public television interview on Friday, Hall said something has to be done to lower health care costs.

“We see these big Taj Mahals they’re building,” Hall said of new facilities built by Michigan hospital systems. “I’m just saying it’s out of control.”

Some hospital executives, including Henry Ford Health CEO Bob Riney, have defended new medical facilities. Henry Ford Health is currently erecting a new $2.2 billion hospital across West Grand Boulevard from its flagship Detroit hospital, where the tower dates back to 1915.

“I would ask people to think about the inefficiencies in the design of a building that was designed to be a hospital over 100 years ago,” Riney said. “… If anyone has shown a great use of a building for a hundred-plus years, it’s us.”

More: Q&A: Henry Ford Health executives defend rising costs of care, new Detroit hospital

Democrats in the Michigan Senate have approved bills to create a new state board with the power to study prescription drug costs and set maximum caps on prices if they’re determined to be too expensive for patients.

The Senate voted in favor of those bills in April, but the Republican-controlled House has not acted on them.

Sen. Darrin Camilleri, D-Trenton, said the ideas Hall floated Friday seemed somewhat similar to the Senate’s plan for the Prescription Drug Affordability Board.

“We have a great plan that’s sitting in the House chamber and that’s been sitting there for many months,” Camilleri said.

Camilleri added that Hall has continued to attack Michigan’s hospitals. In September, Hall called for the ouster of Brian Peters, the leader of the Michigan Health and Hospital Association, after the group criticized the House GOP’s budget plan.

By MATT BROWN

WASHINGTON (AP) — Nvidia CEO Jensen Huang met separately with President Donald Trump and Republican senators Wednesday as tech executives work to secure favorable federal policies for the artificial intelligence industry, including the limited sale of Nvidia’s highly valued computer chips to U.S. rivals like China.

Huang’s closed-door meeting with Republicans on the Senate Banking Committee came at a moment of intensifying lobbying, soaring investments and audacious forecasts by major tech companies about AI’s potential transformative effects.

Huang is among the Silicon Valley executives who warn that any restrictions on the technology will halt its advancement despite mounting concerns among policymakers and the public about AI’s potential pitfalls or the ways foreign rivals like China may use American hardware.

“I’ve said repeatedly that we support export control, that we should ensure that American companies have the best and the most and first,” Huang told reporters before his meeting at the Capitol.

He added that he shared concerns about selling AI chips to China but believed that restrictions haven’t slowed Chinese advancement in the AI race.

“We need to be able to compete around the world. The one thing we can’t do is we can’t degrade the chips that we sell to China. They won’t accept that. There’s a reason why they wouldn’t accept that, and so we should offer the most competitive chips we can to the Chinese market,” Huang said.

Huang also said he’d met with Trump earlier Wednesday and discussed export controls for Nvidia’s chips. Huang added that he wished the president “a happy holidays.”

The Trump administration in May reversed Biden-era restrictions that had prevented Nvidia and other chipmakers from exporting their chips to a wide range of countries. The White House in August also announced an unusual deal that would allow Nvidia and another U.S. chipmaker, Advanced Micro Devices, to sell their chips in the Chinese market but would require the U.S. government to take a 15% cut of the sales.

The deal divided lawmakers on Capitol Hill, where there is broad support for controls on AI exports.

A growing battle in Congress

Members of Congress have generally considered the sale of high-end AI chips to China to be a national security risk. China is the main competitor to the U.S. in the race to develop artificial superintelligence. Lawmakers have also proposed a flurry of bills this year to regulate AI’s impact on dozens of industries, though none have become law.

Most Republican senators who attended the meeting with Huang declined to discuss their conversations. But a handful described the meeting as positive and productive.

“For me, this is a very healthy discussion to have,” said Sen. Mike Rounds, a South Dakota Republican. Rounds said lawmakers had a “general discussion” with Huang about the state of AI and said senators were still open to a wide range of policies.

Asked whether he believed Nvidia’s interests and goals were fully aligned with U.S. national security, Rounds replied: “They currently do not sell chips in China. And they understand that they’re an American company. They want to be able to compete around the rest of the world. They’d love to some time be able to compete in China again, but they recognize that export controls are important as well for our own national security.”

Other Republicans were more skeptical of Huang’s message.

Sen. John Kennedy, a Louisiana Republican who sits on the upper chamber’s Banking Committee, said he skipped the meeting entirely.

“I don’t consider him to be an objective, credible source about whether we should be selling chips to China,” Kennedy told reporters. “He’s got more money than the Father, the Son and the Holy Ghost, and he wants even more. I don’t blame you for that, but if I’m looking for someone to give me objective advice about whether we should make our technology available to China, he’s not it.”

Some Democrats, shut out from the meeting altogether, expressed frustration at Huang’s presence on Capitol Hill.

“Evidently, he wants to go lobby Republicans in secret rather than explain himself,” said Massachusetts Sen. Elizabeth Warren, the top Democrat on the Senate Banking Committee.

Warren added that she wanted Huang to testify in a public congressional hearing and answer “questions about why his company wants to favor Chinese manufacturers over American companies that need access to those high-quality chips.”

The post Detroit Evening Report: Merry Midtown event supports small businesses appeared first on WDET 101.9 FM.

The Associated Press

Bitcoin and companies tied to cryptocurrencies extended a nearly two-month swoon Monday, tracking with a broader market sell-off in technology companies that many see as overvalued.

Bitcoin slid 6.5% after being down nearly 12% earlier in the day, settling in just above $85,000. The most-traded cryptocurrency is down about 33% since hitting a record $126,210.50 on Oct. 6, according to crypto trading platform Coinbase. Bitcoin had soared since April in line with the stock market and driven partly by a more crypto-friendly tone in Washington.

Companies that enable investors to buy and sell cryptocurrencies, as well as the growing number of companies who have made investing in bitcoin their main business focus, were hammered in Monday’s sell-off.

Coinbase Global fell 5.4% and online trading platform Robinhood Markets lost 4.4%. Bitcoin mining company Riot Platforms dropped 2.8%.

Strategy, the biggest of the so-called crypto treasury companies that raises money just to buy bitcoin, tumbled 10%. The company has reported holding 649,870 bitcoin. As of 1 p.m. ET Monday they were worth about $55 billion.

American Bitcoin, in which President Donald Trump’s sons Eric Trump and Donald Trump Jr. hold a stake, fell 8.1% and is now down more than 41% since Sept. 30.

Other Trump-related crypto ventures have seen declines as well. The market value for the World Liberty Financial token, or $WLFI, has fallen to about $4.14 billion from above $6 billion in mid-September, according to coinmarketcap.com And the price of a meme coin named for President Donald Trump, $TRUMP, is $5.67, a fraction of the $45 asking price just before his inauguration in January.

One popular way of investing in bitcoin is through spot bitcoin ETFs, or exchange-traded funds, which allow investors to have a stake in bitcoin without directly owning the cryptocurrency. According to data from Morningstar Direct, investors pulled $3.6 billion out of spot bitcoin ETFs in November, the largest monthly outflow since the ETFs began trading in January 2024.

Bitcoin futures are down nearly 24% in the past month. At the same time, gold futures are up almost 7%.

Analysts point to a number of factors that have led to the sell-off in bitcoin and other crypto investments, including a broad risk-off sentiment that has gripped markets this fall, sending investors toward safer havens such as bonds and gold.

In a research note to clients last week, Deutsche Bank analysts also attributed the recent declines in crypto to institutional selling, other long-term holders collecting profits and a more hawkish Federal Reserve. Stalled crypto regulation has also contributed to the uncertainty, Deutsche Bank said.

“While volatility remains inherent, these conditions indicate Bitcoin’s portfolio integration is being tested, and raises questions of whether this is a temporary correction or a more prolonged adjustment,” the analysts wrote.

On the regulatory front, the crypto industry received a boost in July when Trump signed into law regulations that set initial guardrails and consumer protections for stablecoins, which are tied to assets like the U.S. dollar to reduce price volatility compared with other forms of cryptocurrency.

But a bill that creates a new market structure for cryptocurrency remains stalled in the Senate. The bill has been a top priority for the crypto industry since it spent heavily to elect Trump and install other allies in Washington.

In this episode of CuriosiD, we begin to answer the question:

What happens to the Campus Martius tree after the holidays? 

… By first looking into where our Christmas trees come from.  

At Hillside Christmas Tree Farm in southern Michigan, the work of growing holiday trees begins long before December.

Tony Stefani runs the multi-generation family operation, and also serves as president of the Michigan Christmas Tree Association. He first became involved with the organization more than a decade ago, after his father brought him to a growers’ meeting.

“I had no idea how large this industry truly is,” he says. “There’s a farm in Michigan that sells a million trees annually. It’s quite astonishing when you consider the scale of this business.”

What customers want to know

Customers at Hillside Christmas Tree Farm often ask how long their trees will last. Stefani says a fresh-cut tree should hold up through the holidays. “I’ve received photos in mid-February showing trees still standing and even beginning to sprout new growth,” he says.

Another category of questions has to do with ornaments. “I’m very detail-oriented,” Stefani says. “If you have heavy decorations, I recommend certain species based on their characteristics.”

Tree height is also a growing topic, especially as more homes are built with vaulted ceilings. He says, “There is a strong market for tall trees…but taller trees are generally older [and take] more time in the ground, more effort, and higher costs.”

Better for the environment?

Questions about sustainability are becoming increasingly common, and Stefani believes the benefits of real Christmas trees are clear.

“We offer a product that spends seven to ten years growing in nature, supporting various microecosystems, ” Stefani says. “One acre of trees produces enough oxygen for 18 people.”

He contrasts that with artificial trees, which are “manufactured on assembly lines from petroleum-based materials,” arguing that there’s no environmental case in their favor.

Real trees are also biodegradable. He says that after the holiday season, a tree can be recycled and mulched. “On our farm, we recycle the waste and return it to the land, something that can’t be done with artificial trees,” Stefani says.

A Michigan tree heads to the White House

This year, Michigan earned national attention in the industry. “For the first time in 38 or 40 years, Michigan won the national competition,” Stefani says. Corson’s Tree Farm  will send a roughly 15-foot concolor fir to the White House.

“If you win the state competition, you can compete nationally,” he explains. “And if you win nationally, your tree is presented to the president and the first lady.”

Beyond the holidays

Hillside has become a hub for other members of the community. Beekeepers place hives on the property during the summer. Search-and-rescue teams train their dogs on the acreage. Falconers and professional photographers also make use of the farm.

“We’ve hosted hives for supporting pollination,” Stefani said. “Search and rescue training, falconry activities, and collaborations with photographers seeking scenic backgrounds are also part of what we do.”

It takes time to grow 

Stefani says one of the biggest misconceptions about the industry is how much time it takes for a Christmas tree to grow to commercial height. “I wish people understood how long these trees are actually in the ground,” he said. “The trees we harvested this year were planted back in 2016.”

As president of the Michigan Christmas Tree Association, Stefani says many growers worry about how difficult it is to enter the business, mainly because trees take years to mature before they can be sold.

“Our biggest competitor is the artificial tree,” he says. “Entering this business can be quite difficult for new growers. You’re typically looking at a 7 to 10-year period before you start recouping your investment.”

As the holiday season approaches, he says one of the things he wants those searching for the perfect Christmas tree to understand is the time, energy, and effort it takes to bring this holiday centerpiece to your home.

 

Stay tuned for the next CuriosiD, where we answer what happens to our Christmas trees after the holidays.

WDET’s CuriosiD series answers your questions about everything Detroit. Subscribe to CuriosiD on Apple Podcasts, Spotify, NPR.org or wherever you get your podcasts.

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When the curtain rises on “Irving Berlin’s White Christmas” this December, it won’t just mark the start of Grosse Pointe Theatre’s 78th season. It will christen a new artistic home.

After nearly a decade of performing in borrowed and temporary spaces, the company steps into the gleaming, state-of-the-art Schaap Center with a production that celebrates community, honors veterans and embraces the heart of the holidays.

Running Dec. 5-21, this beloved musical offers everything audiences come to the theater for this time of year: romance, nostalgia, lavish costumes, spirited dance numbers, and, of course, Berlin’s timeless music. But behind the sparkle is a deeper message. It’s one that resonates strongly with this company and the community it serves.

A new stage, a new chapter

For Director Nick Marinello, this performance at the Schaap Center stage is both a milestone and a moment of gratitude.

“Stepping onto the Schaap Center stage feels like the culmination of eight years of creativity, resilience and gratitude,” Marinello said. “We’ve been itinerant performers for nearly a decade, and the Grosse Pointe schools graciously kept us alive during that time. Now, there’s this incredible sense of responsibility that comes with walking into our new performance home.”

That responsibility is woven through every design choice, every rehearsal and every collaborative moment among the cast and crew.

“The Grosse Pointe community, the Detroit community, and so many generous partners came together to make this space a reality,” Marinello added. “We feel called to be good ambassadors for the arts here.”

It’s a fitting sentiment for a production that centers on service, generosity and the bonds that hold people together, particularly during the holidays.

A story rooted in gratitude and service

Based on the iconic 1954 film starring Bing Crosby and Danny Kaye, “White Christmas” follows Army buddies Bob Wallace and Phil Davis as they pursue a pair of singing sisters to Vermont, only to discover that the failing inn where the women are booked is owned by their beloved former commander, Gen. Waverly. In true musical-comedy fashion, romance, laughter and heartwarming surprises ensue.

But beyond the snow-dusted charm and big dance breaks, the story has an emotional core that speaks directly to audiences and to this year’s creative team.

“For me, the song ‘What Do You Do With a General?’ captures the heart of those themes,” Marinello said. “It’s a poignant reflection on how retired service members can be celebrated for their heroism yet still overlooked when they return to civilian life. The show invites us to make sure our words of thanks aren’t hollow, but supported by real acts of service.”

Those themes hit especially close to home for Apprentice Director Kyle Weatherbee, an eight-year Marine Corps veteran who served in Hawaii and Okinawa. Weatherbee sees the musical not simply as a holiday classic, but as a story of reintegration and support.

“The Marine Corps has a way of humbling people through hardship, sacrifice and service,” he said. “Some of the characters in this production are navigating life after the military, trying to find purpose and joy again. I have walked that path and understand the struggles and triumphs of adjusting to a new normal.”

Weatherbee added that the show’s depiction of chosen family — the Army veterans who rally together for their general — reflects the real impact of community support. “At its core, ‘White Christmas’ is about people helping people. Acts of kindness can have a lasting impact.”

A GPT production through and through

While the story is timeless, the production itself is uniquely Grosse Pointe Theatre. A cast of 26 performers and a backstage crew of 25 bring the musical to life, supported entirely by the passion, talent and craftsmanship of volunteers.

“What makes this production uniquely GPT is the signature blend of artistry, craftsmanship and heart that comes from a volunteer-driven community,” Marinello said. “Every detail — the costumes, choreography, musical arrangements, and set design — carries that unmistakable ‘GPT touch.’ It’s the pride, care and collaborative energy that people in this community pour into a show.”

Audiences can look forward to all the classic visual hallmarks of “White Christmas” — elegant 1950s winter glamour, sweeping dance numbers, and musical favorites such as “Blue Skies,” “Sisters,” “Count Your Blessings Instead of Sheep,” and, of course, “White Christmas.” For many, these songs are woven into the fabric of the season itself.

In this production, they will be complemented by stunning costumes, vivid sets and “the kind of warmth only community theatre can deliver,” Marinello said.

In addition to the musical itself, audiences can enjoy festive pre-show entertainment. Metro Detroit choral groups will perform seasonal favorites 30 minutes before each curtain, and Santa and Christmas Carol will appear at select performances. Patrons are encouraged to arrive early to explore the theater and enjoy the amenities of the Schaap Center and the Manoogian Art Gallery.

For the broader GPT community, this production is more than the start of a new season; it’s the start of a new home.

“This marks a historic moment in our 78-year history,” said Linda Zublick, executive director of Grosse Pointe Theatre. “The move to a new performance home would not be possible without our dedicated members, passionate patrons, generous donors, and the vibrant community that has supported us every step of the way.”

Marinello echoes that sentiment.

“‘White Christmas’ is Grosse Pointe Theatre’s holiday card to the metro Detroit community,” he said. “Our way of saying ‘thank you’ for making a difference and supporting the arts. We invite everyone to celebrate this special season with us.”

As the company looks ahead, Marinello hopes this production sets the tone for the next chapter.

“I hope this production feels like a housewarming for us and for the audience,” he said.

If you go

What: “Irving Berlin’s White Christmas,” presented by Grosse Pointe Theatre

When: Dec. 5-21, with evening shows at 7:30 p.m. and Sunday matinees at 2 p.m. Pre-show choral performances begin 30 minutes before. Special Santa appearances on Dec. 11 and Dec. 14.

Where: Schaap Center for the Performing Arts, 15001 E. Jefferson Ave., Grosse Pointe Park

Parking: Free self-parking and complimentary valet

Tickets: gpt.org/whitechristmas, 313-881-4004, start at $29

Runtime: About 2 hours, 30 minutes, with an intermission

By ADRIANA MORGA

NEW YORK (AP) — Maybe your car broke down, your computer was stolen, or you had a surprise visit to urgent care. Emergencies are inevitable, but you can prepare to deal with them by building an emergency fund.

“There are so many things that happen in our lives that we don’t expect and most of them require financial means to overcome,” said Miklos Ringbauer, a certified public accountant.

The industry standard is to save three to six months of expenses in an emergency fund. However, this can feel daunting if you live paycheck to paycheck or if you have debt. But if you’re in either of these situations, it’s even more crucial to build a financial safety net that can help you in times of crisis.

“Emergency funds allow you to prevent further debt,” said Jaime Eckels, certified financial planner and wealth management leader for Plante Moran Financial Advisors.

Suppose you’re paying multiple credit cards and other loans. In that case, Rachel Lawrence, head of advice and planning for Monarch Money, a financial planning and budgeting app, recommends that you make the minimum payments while you build your emergency fund. Once you’ve hit an amount that feels right for your lifestyle, you can go back and continue tackling your debt more aggressively.

Whether you want to start an emergency fund or create better habits while you save, here are some expert recommendations:

Start with small milestones

The idea of saving for three to six months’ worth of expenses can be daunting, so it’s best to start with a smaller milestone. Lawrence recommends starting with a goal of saving $1,000, then moving on to save one, three, and six months of expenses.

The way you approach this goal can vary depending on your income and your budget. But starting with small, attainable goals can help you build an emergency fund without feeling financially strained.

“Starting small is okay. Even if it’s $20 right out of your paycheck, those small things can add up,” Eckels said.

She recommends building your emergency fund in a separate account from your regular savings account, ideally a high-yield savings account, which offers a higher interest rate than a traditional savings account.

Decide on the appropriate amount for your life

Knowing how much to save for your emergency fund depends on your life situation. Lawrence suggests you gauge your own financial responsibilities to estimate how much your ideal emergency fund should be.

For single professionals with no significant financial responsibilities, such as a mortgage or a car, the amount might be $2,000 to $3,000. At the same time, people with children and several pets might aim to save for six months’ expenses.

“There’s no one-shoe-fits-all solution. Everybody is different, especially if you have variable expenses on a monthly basis,” Ringbauer said.

Lawrence recommends that self-employed people maintain two emergency funds: one to buffer low-income months and another for true emergencies. To build your buffer account, Lawrence recommends setting aside some money during high-earning months.

“You set that amount aside in your buffer account until you have two or three months of the amount that you want, she said. “Because that way any month where you have less money, you go pull from the buffer and it’s no big deal.”

Automate your savings

Eckels recommends setting up automatic savings as a low-effort way to build your emergency fund.

Scheduling your savings to be withdrawn from your bank account as soon as your paycheck arrives is an effective way to build a savings habit without having to transfer the money manually.

“I always tell people if it was never in your bank account, you never had it, right?” Eckels added.

She also recommends that her clients open a separate account, one that isn’t at the same bank as their checking account, so they aren’t tempted to transfer the money in a non-emergency.

Make it visual

As you’re making progress towards your emergency fund goal, making it visual can help you stay motivated, according to Lawrence.

She recommends getting creative with how you track your progress, ideally with a method that brings you joy.

“You want your brain to get rewarded as often as possible when you’re seeing a bunch of progress,” she said.

Some options to make your progress visual include drawing a thermometer-like tracker and keeping it updated as you advance toward your goal, documenting your progress on a habit-building tracker on your phone, or using a budgeting app with a tracking tool.

Save windfalls

If your budget is really tight and you don’t have much wiggle room to set aside money for an emergency fund, Lawrence recommends saving windfalls.

“Unexpected chunks of money that maybe you weren’t expecting, like tax refunds or getting a third paycheck when you normally get paid twice a month, or a bonus, those are your best ways to make progress when you’re tight otherwise,” said Lawrence.

In general, Lawrence recommends that people keep 10% of their windfall for themselves and the rest for their emergency fund. With that breakdown, you can both save and feel rewarded by the unexpected income.

If you use it, don’t feel guilty

Chances are that an emergency will happen, and when it does, you don’t need to feel guilty for using your emergency fund, Lawrence said. Instead, it’s best to think about how you’ve achieved your goal of building a financial safety net for yourself.

“You wouldn’t feel bad about using your down payment to buy a house, you wouldn’t feel bad about saving for retirement, actually to retire,” Lawrence said.

The Associated Press receives support from Charles Schwab Foundation for educational and explanatory reporting to improve financial literacy. The independent foundation is separate from Charles Schwab and Co. Inc. The AP is solely responsible for its journalism.

The growing awareness of the value among parents wanting to develop and inspire their child’s interests is not only driving more companies to develop educational products but pushing sales.

According to a report by Global Market Insights the STEAM (Science, Technology, Engineering, Arts and Mathematics) toy market is projected to reach $13 billion by 2032. Among the toymakers meeting the demand is Assaf Eshet, CEO and founder of Clixo , a flexible, origami-inspired magnetic system that was recently named one of Time magazine’s Best Inventions of 2025. As an industrial designer who has worked for some of the top names in the toy industry, Eshet said his mission has always been to create toys that inspire exploration rather than dictate outcomes.

“Kids should have a real appetite for curiosity,” said Eshet. “Our job as parents, teachers and toymakers is to strike that nerve of wonder and keep it alive.”

That’s what Playmobil did for him as a child.

“I used to assemble them and then reassemble them to make them my own,” Eshet said during a phone interview from New York City.

Now children are taking his kits, assembling them as they are and then reimagining them to be something else.

“Things that we can’t even imagine they are already creating,” said Eshet, who launched the brand in 2020 with a few kits and has expanded it to include 20 kits ranging from $15 to $200. New this year for aspiring paleontologists is Dinosaur Adventure (6-up, $49.99).

“It’s an amazing set,” Eshet said, of the newest addition to the Clixo family featuring 36 pieces that can be used to make a variety of dinosaurs or whatever creature comes to mind.

“You can mix and match them, too,” said Eshet, whose Clixo brand is also in the running for the Toy Foundation’s Best Creativity Toy of the Year.

The company also earned the Best Creative Fun Award by Tillywig and was named to Toy Insider’s Top Holiday Toys list in 2023.

Clixo is a new favorite but the launch of STEM toys happened around the same time as the space race and the inauguration of the National Aeronautics and Space Administration in 1958.

“The scientific achievements of the next three decades from the moon landing, artificial heart, personal computing and cell phones all yielded a call for enhanced science education,” according to a report from Forbes. “The call was answered by the National Science Foundation (NSF), which established guidelines for the teaching of science, math, engineering and technology in grades K-12, introducing the acronym SMET. However, educators and policymakers found the term awkward and unappealing, evensuggesting it sounded like ‘smut’. So in 2001, the NSF officially rebranded the initiative STEM and more recently STEAM, as ‘Art’ was added.”

“A lot of parents are buying STEAM toys that have educational value and those toys become treasures,” said Julie Everitt, co-owner of Whistle Stop Hobby and Toy in St. Clair Shores, which has been in the business of selling toys for more than 50 years. Everitt said there are a number of cool new STEAM toys out this year including Rail Cube by Sanko Toys (3-up, $99.99-$199.99).

“The set comes with magnetic tubes that you connect to create a little monorail for a little engine,” Everitt said. “It’s a super cute set and it really goes.”

Another favorite at Whistle Stop is Hape’s Lock and Learn Playboard (3-6, $34.99), a wooden busy board featuring little exercises that teach kids meaningful tasks like how to unlock a latch or turn on a light. Among the STEAM toys growing in popularity among older kids is Rolife’s miniature kits ($49.99). Tweens and teens, even adults can build everything from little houses and book nooks to tiny greenhouses.

“Most of them are for ages 14 and up but we do carry some for 8-plus,” Everitt said, sharing but a few of the STEAM toys making this year’s hot list.

More toys

Looking for a few more toys. Check out our kids’ review of this year’s lineup of STEAM toys along with many others that are expected to make Santa’s Wish List inside the Homefront section and on our website.

The post Michigan Congresswoman Dingell fears Trump’s proposed limits to Clean Water Act appeared first on WDET 101.9 FM.

Detroit held a grand opening for the Violet T. Lewis Village senior apartment complex on Wednesday. It sits on the site of Michigan’s first and only historically Black college. The school was founded by a Black woman named Violet T Lewis. 

The Lewis College of Business offered courses in typewriting, bookkeeping, stenography, penmanship and office management. It was closed in 2013 amid Detroit’s bankruptcy and was re-opened as the Pensole Lewise College of Design and Business in partnership with the College for Creative Studies. 

Dr. Violet Ponders is Lewis’s granddaughter. She tells the story of how her grandmother started the school. 

“When she got out of school, she found it difficult to get the kind of job that she wanted. Then once she began to go and do some other things, she then found out that there were there was nobody that looked like her in offices doing office work. So, you know, she kept saying, we got to do something. We got to do something. So she did something. She founded the college in 1928. She was an educator, but yet she touched the souls of people in a different kind of way.

“One of the things she started was the March of Dimes fashion extravaganza, a group of community women here in Detroit raising money for polio. Everybody called her mommy TV. Those of us who were in the family, there was a certain place on the stairwell … where she stopped being mommy TV, and she became Doctor Lewis. And we would ebb and flow that way all of the time.” 

Violet T. Lewis was also one of the founders of the Gamma Phi Delta sorority. 

Fashioned in the sorority’s iconic baby blue and pink Dr Contessa Bell, the 14th president and CEO of Gamma Phi Delta says Violet T. Lewis’s impact echoed far beyond her lifetime. 

“She helped build a sisterhood rooted in service, leadership, business excellence, and empowerment through Lewis College of Business. She opened doors that many believed were locked. She championed education when it seemed like it was impossible, and during her time when it wasn’t easy, and especially for women.” 

Detroit City Council person Angela Whitfield Calloway is a member of the Gamma Phi Delta Sorority and has proposed more affordable housing in the city since taking office in 2021. 

She says Lewis had done more in the city than simply opening an HBCU. 

“She owned that property over there on John R and Ferry when Black folks were restricted from owning properties over there because of the restrictive covenants in the deeds. But she worked around that and opened that school.” 

The Violet T. Lewis Village is a senior apartment complex, with rents based on income starting as low as $427 for a one bedroom. To find out more about availability call 313-270-9150 or pvm.org.

Listen to the latest episode of the “Detroit Evening Report” on Apple Podcasts, Spotify, NPR.org or wherever you get your podcasts.

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Controversy among local leaders in Oakland County is brewing.

A Detroit Free Press investigation uncovered gaps in the county’s laws that allowed multiple officials to engaged in conduct that experts say is a conflict of interest. Commissioners in Oakland County voted on contracts for organizations where they were also employed.

Detroit Free Press Investigative Reporter Dave Boucher joined the show to explain why those gaps exist and how to close them.  

Listen to The Metro weekdays from 10 a.m. to noon ET on 101.9 FM and streaming on demand.

Subscribe to The Metro on Apple Podcasts, Spotify, NPR.org or wherever you get your podcasts.

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WDET strives to make our journalism accessible to everyone. As a public media institution, we maintain our journalistic integrity through independent support from readers like you. If you value WDET as your source of news, music and conversation, please make a gift today.

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By Rachel SiegelThe Washington Post

President Donald Trump over the weekend floated an idea that took real estate agents, mortgage brokers and housing experts by surprise: the 50-year mortgage.

On Saturday, Trump posted an image on Truth Social titled “Great American Presidents.” It included a photo of President Franklin D. Roosevelt under the words “30-year mortgage” and a photo of Trump beneath the words “50-year mortgage.” (Mortgages were extended to 30 years in the 1940s as part of Roosevelt’s push to make home buying more affordable.)

Housing economists say the longer time frame could save buyers a couple hundred dollars a month, depending on the size of the mortgage and other details. But it would be costlier in other ways, including with more interest paid over a longer period of time. Implementing such a policy would also require tedious changes from regulators, plus buy-in from lenders and the broader housing finance industry.

So far, there’s little sense of how popular a 50-year mortgage would be. Here’s what we know so far.

– – –

What has the Trump administration said?

After Trump’s Truth Social post on Saturday, Bill Pulte, the administration’s top housing finance official, posted on X that “we are indeed working on The 50 year Mortgage – a complete game changer.” Pulte is the head of the Federal Housing Finance Agency who also made himself chair of mortgage behemoths Fannie Mae and Freddie Mac, companies that have been under government control since the 2008 housing crisis. Fannie and Freddie are essential to the smooth functioning of the U.S. mortgage market and together guarantee about half of existing home loans.

In a statement, a White House official who declined to be named said Trump “is always exploring new ways to improve housing affordability for everyday Americans. Any official policy changes will be announced by the White House.”

An FHFA spokesperson who also declined to be named said, “We are studying, and have not finalized, a wide variety of options related to multi year loans, including the ability to make mortgages transferable or portable. If banks can sell someone’s mortgage, we should at least explore if there are opportunities for regular Americans to have flexibility.”

One person close to the White House said the announcement came after Democrats swept in last week’s elections, in part on pledges to boost affordability for housing and more. But that person, speaking on the condition of anonymity because they were not authorized to discuss it publicly, said Trump’s social media post had no substantial policy behind it yet.

– – –

Would 50-year mortgages save buyers money?

With a longer timeline, home buyers have much more time to pay back a loan. And they would have lower monthly payments along the way. For example, let’s assume a home sells for $400,000. A buyer puts up 10 percent – or $40,000 – for a down payment. The buyer gets a 6.25 percent interest rate, slightly above last week’s 30-year fixed rate average of 6.22 percent.

That buyer would owe about $2,300 each month on a 30-year mortgage. On a 50-year loan, they would owe about $2,000. They might pay more than that, though – that math assumes a buyer gets the same rate for both mortgages, which is unlikely, since shorter loans typically have lower rates. So rates on 50-year loans could be higher than on 30-year ones.

A lower monthly payment could be beneficial for new buyers looking to get a foothold in the market. But it might also work against them if they are only planning on living in the house for a few years, or if they don’t know how their needs will shake out across decades.

– – –

What about potential drawbacks?

Buyers’ monthly payments may be lower, but they’ll end up paying much more interest over two more decades. With a 50-year loan, total interest on that $400,000 home would amount to $816,396, compared with $438,156 on a 30-year loan. That’s 86 percent more interest over the life of the loans, said Joel Berner, senior economist at Realtor.com.

And it will take much longer for owners to build equity. Ten years into paying off a 30-year mortgage on that $400,000 home, an owner would have a 24 percent stake in a house, setting aside rising home values. With a 50-year mortgage, that would be 14 percent.

Berner said addressing the nation’s affordability problems will take lots of ideas, including how to generate more construction so there are enough homes to meet Americans’ needs. But a new mortgage offering could juice demand before supply can catch up – which would push prices even higher.

“This is a creative way to solve this problem,” Berner said, “but I don’t think it addresses the fundamental issues that we have.”

– – –

What would it take to offer a 50-year mortgage?

Establishing a new kind of mortgage could be possible, albeit complex, wrote Jaret Seiberg, managing director at TD Cowen, in a Monday analyst note. The Dodd-Frank Act – the landmark legislation that reformed the financial system after the 2008 financial crisis – says mortgages that exceed 30 years do not meet the definition of a qualified mortgage, which also means Fannie and Freddie can’t buy them.

But regulators have the ability to alter those qualifications to keep mortgages affordable. All told, the process could take at least a year to implement, Seiberg wrote, and it’s unlikely that lenders would originate 50-year mortgages without clear policy changes first.

Without changing the qualifications, the new loans could be hard to find – and more expensive. Lenders may be less willing to offer 50-year mortgages if they know Fannie and Freddie can’t buy them, a spokesperson for the Mortgage Bankers Association said in a statement. Limited interest from investors could also push interest rates up.

– – –

What’s next?

Any details from the White House or FHFA would be needed for the market to prepare for such a change. Joe Brusuelas, chief economist at RSM, said that for now, the administration’s posts appear to be more about messaging than substantial policy. But, Brusuelas said, younger generations “may look at this differently.”

“If they think they’re saving $300 or $400 a month, then that’s a big deal,” he said. “That covers the car payment, maybe.”