Trump Administration Considers 50-Year Mortgages to Boost Homeownership

The Trump administration is exploring the introduction of **50-year mortgage loans** as a strategy to improve housing affordability for Americans. This initiative comes in response to skyrocketing home prices, which have surged significantly since the onset of the pandemic. According to **Bill Pulte**, Director of the Federal Housing Finance Agency, the administration is actively working on this proposal. He emphasized on social media that the 50-year mortgage could be a “complete game changer.”

In a recent interview on **Fox News**, Trump downplayed the significance of the proposal, stating, “It’s not even a big deal.” He noted that extending the mortgage term from 30 to 50 years would lower monthly payments but insisted it is not a substantial shift in the mortgage landscape. Pulte later clarified that the 50-year mortgage is one of several options being considered to make homeownership more accessible.

The feasibility of implementing a 50-year mortgage faces numerous challenges. Regulations established after the **2008 financial crisis** limit most regulated mortgages to a maximum term of **30 years**, requiring legislative approval from Congress to allow longer loans. There is bipartisan interest in addressing housing affordability, but some lawmakers, including **Representative Marjorie Taylor Greene**, have voiced strong opposition. Greene criticized the idea, alleging that it would benefit banks and mortgage lenders while leaving homeowners burdened with debt for life.

Despite the potential benefits of lower monthly payments, analysts caution that the viability of a 50-year mortgage depends on maintaining interest rates similar to those of shorter terms. Current data from **Freddie Mac** indicates that the average rate for a **30-year mortgage** stands at **6.22%**, compared to **5.5%** for a **15-year loan**. The rate for a 50-year mortgage could be significantly higher, potentially negating any monthly savings.

Additionally, extending the loan term would slow the rate at which homeowners build equity. Borrowers on a 50-year mortgage could end up paying nearly double the total interest over the life of the loan. Keith Munsell, head of the real estate program at **Boston University’s Questrom School of Business**, remarked, “It’s a tradeoff among monthly payment, total interest paid, and equity build-up. The biggest impediment to homeownership remains the down payment.”

Reducing the cost of homeownership has been a clear priority for Trump. He has previously signed executive orders aimed at identifying ways the federal government can reduce barriers to homeownership. Despite mortgage rates being near their lowest levels for the year, the housing market remains historically unaffordable. The average price of an existing home reached **$415,200** in September, while new homes are not much more accessible, with a median sales price of **$413,500** as of August, according to the **National Association of Realtors** and the **National Association of Home Builders**.

The persistent increase in both new and existing home prices, despite a recent slump in the housing market, poses significant challenges for prospective buyers. Many industry analysts argue that merely extending loan terms will not address the underlying issues contributing to high housing costs. Munsell expressed skepticism about the effectiveness of the proposal, stating, “If you want to make housing more affordable, let’s cut the price of materials used. Let’s innovate in the construction industry.”

In conclusion, while the proposal for 50-year mortgages has the potential to provide some financial relief for buyers, it may not sufficiently tackle the fundamental supply issues in the housing market. As discussions continue, the administration faces a complex landscape of regulatory hurdles and varying opinions among lawmakers regarding the best path forward to enhance housing affordability.