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A Bold Proposal of 5% Mortgage Rates to Revitalize America Plus Hybrid Work Model Incentives Save 30% for Employers And Early Childhood Education $650 Per Month Benefits

Updated: Jul 4

The U.S. housing market is facing a crisis of affordability and supply, with soaring interest rates pricing out potential buyers and hindering new construction. However, a bold proposal to slash mortgage rates to 5% could revolutionize the market and deliver a host of benefits for the economy, the environment, and families. While adding financial incentives for employers to adopt a 3-day per week hybrid work model will save almost 30% annually in reduced overhead costs about $11,000 on-average per year for each employees writes author, James E Dean @EntangledVibrations.com .


Further, I find there's the added benefit of almost 35% reduced CO2 pollution benefits fight against climate change, given the adoption of hybrid 3-day work from home and 2-days at office and/or retail settings, whatever the employment case maybe. The mental health and family enjoyment benefits from a hybrid work model are also significant towards keeping your employees happy long-term. Studies show the 3 day work from home hybrid model is just as productive as working full time from office. The employer gets the same work results.


Watch Video About Hybrid Work Becoming Mainstream in America


Lower Rates: A Catalyst for Growth


A key foundational policy, I find in this proposal is reducing mortgage rates to 5% would provide a powerful incentive for real estate developers and private investors to ramp up construction of new housing. Lower borrowing costs would make projects more financially viable, leading to increased supply and helping to alleviate the current shortage.


For example, a 7% mortgage rate on $350,000 home is about $2,329 per month over 30 years, versus a 5% mortgage rate on $350,000 home is about $1,879 per month over 30 years. This mortgage rate adjustment saves home owners and sparks economic growth.


So, the lower mortgage rates translate to significantly reduced costs for home buyers over the long term. A 5% rate on a 30-year mortgage could save homeowners tens of thousands of dollars compared to the current 7% rates. This would not only make home ownership more accessible for first-time buyers, but also free up disposable income for families to invest in other areas of their lives, thus stimulating greater economic market growth.


Real Estate: A Cornerstone of Retirement


Real estate has long been a core component of retirement savings for American families. By stimulating investment in new housing, lower mortgage rates would bolster this vital asset class and strengthen the financial security of future generations. The resulting economic activity would ripple through the economy, creating jobs, boosting consumer spending, and generating tax revenue. The median homeowner aged 65 and older has 42% of their net worth tied up in their primary residence. This number can be even higher for those who own additional real estate properties or have significant equity in their homes. And real estate rental properties are a great way to lock-in steady retirement income that offers many tax benefits.


The Hybrid Work Model: A Win-Win for the Environment and Families


The rise of remote work has opened up new possibilities for flexible work arrangements. A hybrid model, where employees work from home three or more days per week, could be further incentivized by offering financial benefits to businesses that embrace this approach. This would not only reduce commuting costs for workers, but also significantly decrease auto travel, leading to lower carbon emissions and a positive impact on the environment.


The percentage by which a hybrid work model (3 days per week from home) reduces employer expenses varies depending on several factors, including:


  • Industry: Some industries, like tech or professional services, may see larger savings due to lower office space requirements.

  • Company Size: Larger companies may have more potential for cost reduction due to economies of scale.

  • Real Estate Costs: Companies in expensive urban areas may see significant savings on rent and utilities.

  • Other Expenses: Savings can also come from reduced expenses related to office supplies, maintenance, and employee amenities.


Estimates and Research:


  • According to a survey by Global Workplace Analytics, employers can save an average of $11,000 per year for every employee who works remotely half of the time.

  • A study by IWG found that 90% of CEOs reported that adopting a hybrid work model has reduced their business costs.

  • Some companies report reducing their workspace costs by as much as 40% after implementing a hybrid model.


General Range:


While the exact percentage varies, a reasonable estimate based on available data suggests that a 3-day-per-week hybrid work model could reduce employer expenses by 10% to 30% on average.


Key Areas of Savings:


  • Real Estate: Reducing office space is a major source of savings.

  • Utilities: Lower energy consumption for heating, cooling, and lighting.

  • Office Supplies: Reduced need for paper, printing, and other supplies.

  • Employee Amenities: Less spending on snacks, coffee, and other perks.

  • Recruitment and Retention: Offering a hybrid work model can attract and retain talent, potentially reducing turnover costs.


Important Considerations:


  • Implementation Costs: Transitioning to a hybrid model may require initial investments in technology and infrastructure.

  • Productivity: Ensuring employee productivity and engagement is crucial to realizing the full benefits of a hybrid model.

  • Culture: Building a strong company culture in a hybrid environment requires intentional effort and communication.


Overall, the potential savings from a hybrid work model are significant, but careful planning and execution are essential to maximize the benefits and minimize potential challenges.


Investing in Early Childhood: A Pathway to a Stronger Future


While addressing the issues of mortgage rates and hybrid work models, the benefits early childhood education and mental health support are equally critical U.S. investments in the well-being and development of our children. The proposal calls for providing a $650 monthly supplement to families with children ages 1-5 ensuring access to high-quality care and addresses the root causes of many social issues. This investment has been shown to yield significant economic returns, reducing crime rates, improving educational outcomes, and boosting overall productivity.


Bottom line, we're talking about $20 Billion total supplemental investment in American families for early childhood (ages 1-5) education and mental health which yields at least $50 Billion in economic annual gains over 15 years and significantly reduces overall crime rates.


A Bold Vision for a Brighter Future


This proposal is not simply about economic growth; it's about creating a more equitable, sustainable, and prosperous future for all Americans. By investing in housing, families, and the environment, we can build a stronger foundation for generations to come.

The total cost of the proposed early childhood investment is estimated at $20 billion, a small price to pay for the estimated $50 billion in economic gains and the immeasurable social benefits that would accrue over the next 15 years. It's time for bold action to revitalize America and create a brighter future for all.


About Author


James E Dean resides in the Greater Cleveland Ohio community. Mr. Dean brings over 35 years of experience across a wide range of industries worldwide. He is considered by many to be a leading expert in the energy sector, retail eCommerce, brand marketing and AI technology.  J Dean is also a frequent Blogger, and graduate of Boston University. He enjoys collecting antiques, travel and fitness. Email  Message


In the late 1980s, Mr. Dean worked at Fidelity Investments and American Finance Group, as Marketing Manager in Boston, Massachusetts. From there, James E Dean joined IMAGRAPH, a company that pioneered digital compression technology for medical CT-Scan and MRI applications, U.S. defense satellite imaging and broadcast digital video production markets. The company later went public (NASDAQ: LUMI). Subsequently, Mr. Dean became involved 1990s as a co-founder at Artel Software / BorisFX in Boston, Massachusetts; where he helped pioneer broadcast digital effects, video editing systems, advanced algorithms for software and hardware video production systems. The company later partnered with AVID Technology to go public (NASDAQ: AVID). Working in this role for many years, Mr. Dean lead the development team that partnered with AVID Technology, SONY, Microsoft, Apple, Panasonic, D-Vision Systems, IBM and MATROX to develop the digital video production industry which has enabled consumers i.e. ordinary people to create broadcast quality information, stories and share knowledge on networks worldwide. Often, J Dean was a frequent tech evangelist at the National Broadcast Convention (NAB) and Consumer Electronics Show (COMDEX) in Las Vegas. In the mid 2000s, James E Dean went on to launch several digital media and AI technology companies including Entangled Vibrations, with a focus on business development, startup capital funding, eCommerce programming and creative multimedia services delivering broadcast quality text, image and video content, a role he enjoys today as the Director.  

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