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A US housing official announced that the agency is developing a 50-year mortgage option. This follows a social media post from President Donald Trump, who referred to the idea as a “50-year Mortgage,” calling it “a complete game-changer.” The Federal Housing Finance Agency (FHFA) is also exploring relief options for 5-, 10-, and 15-year mortgages, including discussions around assumable or portable mortgage products, though details remain scarce.
In response to the potential plan, some conservatives and influential figures within Trump’s Make America Great Again movement criticized the concept, suggesting that such long-term loans could keep homeowners in debt for life. Over the weekend, critics took to social media with comments like “In debt forever, in debt for life!” and “Lifetime mortgages.”
Trump downplayed concerns, arguing that a longer mortgage simply reduces monthly payments by spreading out the costs, and attributed home affordability issues to policies from his predecessor, Joe Biden, and the Federal Reserve’s interest rate strategies. He emphasized that the economy is performing strongly despite rising living costs, which have affected many households.
While home sales increased in September, pending sales remained flat despite lower mortgage rates following last month’s Fed rate cut. The median age of first-time buyers hit a record high of 38 last year, well above the typical late-20s age of the 1980s. Housing affordability continues to be a significant concern as home prices are about 60% above pre-pandemic levels.
Trump has called for more aggressive Federal Reserve rate cuts, blaming current interest rates for a possible recession in the housing market. The White House may soon issue an executive order addressing housing and affordability issues. Meanwhile, the average rate for a 30-year fixed mortgage is at a one-year low of 6.19%, down from last year’s peak of 7.04%.
Experts suggest that increasing the supply of housing — rather than extending mortgage durations — would be a more effective way to improve affordability. Analysts from TD Securities noted that the 50-year mortgage concept might take a year or more to implement and would require a boost in housing supply, which depends on reducing construction costs. Higher demand from longer loans could also push home prices higher, potentially making homes even less accessible for buyers.
Additionally, some policymakers and industry analysts see potential benefits in expanding loan options. For instance, Representative Marjorie Taylor Greene has advocated for programs that help renters qualify for home loans, while firms like Ellington Financial, United Wholesale, and Rocket Companies could benefit from the introduction of longer-term mortgages.
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