But I think of it as more of just a tidal movement than lenders duping buyers.
They’re still subjected to supply and demand.
If home developers (DR Horton, Gonyea etc) who own land refuse to build/develop and wait for supply inventory to be shortened it gives them and the banks more control over price points. It also raises the cost of homes that were built in the 30’s due to a shortage. These developers do not build affordable homes that one could pay off in a lump sum, they work with banks so people are always stuck with a 30yr and having to pay interest. Likewise when banks offer a refinancing program, people go for it even though it extends the length of their loan again. If you want to pay more towards your principal, you have to make a documented note of it, because if you overpay on your monthly mortgage, the banks just apply it to the interest
Likewise we as a society are groomed to believe we need home ownership and are encouraged to take on debt. I know of “families” with just 1 kid in 4,000 ft sq homes. All those rooms/basement using heating and not actually being used. As opposed to some Hmong families I know where they have multiple families living in a house that size and everyone contributes.
There are also laws that make it so if one did pay off their house and wanted to pass it down to their children or sell at a ridiculous low price, they would not be allowed to do so. There are also building laws and city/county codes that essentially make it impossible to build yourself a cheap rag tag home on a land lot you purchased.
My point is, a bunch of highly cognitive functioning people who understand human life cycles and place numerical figures upon them, are working for banking corporations. And figuring out ways every member of society will have to pay them interest. And the rest of the population just takes it cause they’ve either been conditioned, it works for them, are apathetic, or just plain unable to see the big picture.
