This problem will be exacerbated if/when US bonds go into a negative yield like Europe and Japan.

The 40yr mortgage is a band aid on a much bigger issue here and I think it's going to exacerbate the issue of affordable housing-making prices go up even further. 

My husband works more than any person should, and I am alone, and very trapped in that 2nd story apartment which greatly exacerbates my agoraphobia and my panic disorder.

From the California Association of Realtors website: "C.A.R. is actively working to defeat two bills that will further harm property owners and exacerbate the state’s housing crisis: AB 1771 (Ward) and AB 2050 (Lee).C.A.R. strongly opposes to AB 1771 (Ward) which would unfairly penalize property owners with up to a 25 percent tax if a property is sold before seven years from its original date of purchase.

And this was exacerbated by the low interest rates of course.

You may be able to rent it, in fact you will certainly be able to rent it since we're in the middle of a protracted  housing crises exacerbated by the pandemic, supply chain interruptions, etc, etc, and that's what I would suggest focusing on when asking the question "does this make sense?"

The good news for REI is that the current situation will buoy rents.On the flip side of the coin, inventory is very low and higher rates and economic uncertainty only exacerbate low inventory.Employers and boards of directors are assessing staffing levels now and will continue to do so...that does not wait until later. 

The housing market has a lot of mitigants, most notably low supply, which will only be exacerbated by higher rates because people can't move. 

My guess is this is going to exacerbate supply line issues, trigger more inflation and cause the fed to increase rates and find ways to “tamp” down hot spots.

Meaning a race to the bottom and an exacerbation of the acute housing crisis.