- U.S. housing official says agency is working on 50-year mortgage.
- FHFA trade-off “relief” for 5, 10 and 15-year mortgages.
- Right-wing conservatives blast “lifetime” mortgages.
US President Donald Trump downplayed possible 50-year mortgages as a way to make homes more affordable than typical 30-year loans, as some supporters rejected a plan that would make homeowners pay more in interest and take longer to build equity.
“All it means is you’re paying less per month. You’re paying it over a longer period of time. It’s not like a huge factor. It might help a little bit,” Trump said Fox News“The Ingraham Angle” program on Monday, blaming her Democratic predecessor Joe Biden and the Federal Reserve’s interest rate policy for housing affordability concerns.
Conservative lawmakers, influencers in Trump’s Make America Great Again movement and economists were among those who rejected the idea, noting that it would take people longer to own their homes. However, some analysts said that could boost some investors.
Over the weekend of X, Republican US Representative Marjorie Taylor Greene wrote “I debt forever, in debt for life!” while right-wing activist Mike Cernovich responded with “Lifetime mortgages”.
Affordable housing is the key issue
Director Bill Pulte said Saturday that the FHFA was “working on” a five-decade mortgage after Trump, a Republican, posted a photo of himself under the headline “50-year mortgage” on social media.
“A complete game-changer,” Pulte wrote on X.
“We are also working on ways to provide relief in the 5-year mortgage, the 10-year mortgage and the 15-year mortgage,” he wrote separately on Sunday, giving no details, adding that the agency was looking into “eligible or portable mortgages.”
FHFA did not respond to requests for comment.
“Everyone is working together to implement the president’s policies,” White House spokesman Davis Ingle said, adding that any policy changes would be announced by the White House.
American households are struggling with increases in the cost of living, even as inflation has slowed. Prices took center stage in last week’s election, where Democrats swept key races as Trump doubled down on his economic agenda.
“I don’t know that they’re saying that. I think the polls are fake. We have the greatest economy we’ve ever had,” Trump told Fox on Monday.
Affordability may continue to be a challenge for many potential buyers as home prices remain high on average at nearly 60% above pre-COVID-19 levels.
While home sales rose in September, pending sales remained unexpectedly flat despite lower mortgage rates, which fell after the Fed cut benchmark interest rates last month.
Despite lower rates, the housing market remains stuck, with the median age of a first-time buyer hitting a record 38 last year — well above the late 20s that were typical in the 1980s.
‘Fix the supply side’
Trump has called for more drastic rate cuts, with Treasury Secretary Scott Bessent blaming current rates for what may already be a recession in the housing sector, and White House economic adviser Kevin Hassett said Tuesday that housing prices remained a priority.
The U.S. president may address housing and affordability issues in an upcoming executive order, according to people familiar with the matter.
The average rate on the popular 30-year fixed-rate mortgage is at a one-year low of 6.19% after rising to 7.04% in January, Freddie Mac data showed last month.
“It’s not clear how much this could lower the monthly payment because we don’t know how the interest rate would compare to a 30-year mortgage,” wrote Daryl Fairweather, chief economist at Redfin, on X. “A more effective, long-term solution is to fix the supply side.”
TD Securities analysts told investors Monday that the idea of 50-year loans could take at least a year to materialize and “will only work if there is a corresponding increase in housing supply,” which requires lower construction costs to happen.
By increasing the demand for houses, such mortgages can also increase house prices, putting them further out of reach for buyers.
Greene, who represents a district in Georgia, also said more could be done to get renters to qualify for home loans, among other steps.
As for the industry, BTIG analysts said 50-year mortgages could bolster companies such as Ellington Financial EFC.N, United Wholesale UWMC.N and Rocket Companies RKT.N, which owns Redfin.
