Trump calls 50-year mortgages ‘no big deal’ as right-wing conservatives refuse

• American housing official says that the company working on a 50-year mortgage.
• FHFA Weighting “Reliefs” for 5-, 10-, and 15-year mortgages.
• Right-wing conservatives are blasting “lifetime” mortgages.
  

U.S. President Donald Trump has played down potential 50-year mortgages as a way to make homes more affordable than standard 30-year loans, as some supporters decried a plan that would require homeowners to pay more interest and take longer to build equity.

“All it means is you pay less per month. You pay it for longer. It’s not a big factor. It might help a little bit,” Trump said on Fox News’ “The Ingraham Angle” program Monday, blaming his Democratic predecessor Joe Biden and the Federal Reserve’s interest rate policies 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 longer to actually own their homes. Some analysts, however, said it could stimulate some investors.

Over the weekend at X, Republican US Representative Marjorie Taylor Green wrote: “Debt forever, debt for life!” while right-wing activist Mike Cernovich countered with “Mortgages for Life”.

Housing affordability is a key issue

US Federal Housing Finance Agency Director Bill Pulte on Saturday said the FHFA was “working” on a five-decade mortgage after Trump, a Republican, posted a photo of himself with the caption “50-year mortgage” on social media.

“A complete game changer,” Pulte wrote in X.

“We are also working on ways to give relief to the 5-year mortgage, the 10-year mortgage and the 15-year mortgage,” he wrote separately on Sunday, without offering details and adding that the agency was looking at “strong 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.

US households are struggling with cost-of-living increases even as inflation has risen at a slower pace. Prices took center stage in last week’s election that saw Democrats sweep 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 biggest economy we’ve ever had,” Trump said on Fox on Monday.

Affordability could remain a challenge for many prospective buyers as home prices remain high, nearly 60% above pre-COVID-19 levels on average.

While home sales rose in September, pending sales were unexpectedly flat despite lower mortgage rates, which eased after the Fed cut interest rates last month.

Despite lower interest rates, the housing market remains stuck, with the median age of a first-time buyer hitting a record high of 38 last year — well above the late 20s mark that was typical in the 1980s.

“Fix the supply side”

Trump has called for more drastic Fed rate cuts, with Treasury Secretary Scott Bessent blaming current rates on a housing slump and White House economic adviser Kevin Hassett on Tuesday saying home prices remain a priority.

The US president may address housing and affordability issues in an upcoming executive order, according to people briefed on the matter.

The average rate on the popular 30-year fixed-rate mortgage is at a one-year low of 6.19 percent after rising to 7.04 percent in January, Freddie Mac data showed last month.

“It’s unclear how much this could lower the monthly payment because we don’t know how the interest rate would compare to a 30-year mortgage,” Daryl Fairweather, chief economist at Redfin, wrote to X. “A more effective, long-term solution is to fix the supply side.”

TD Securities analysts told investors Monday that the 50-year loan idea could take at least a year to materialize and “only works if there is a corresponding increase in housing supply,” which needs lower construction costs to happen.

By increasing the demand for homes, such mortgages could also increase home prices, making them more unaffordable for buyers.

Green, who represents a district in Georgia, also said more could be done to qualify renters for mortgages, among other steps.

On the industry side, BTIG analysts said 50-year mortgages could boost companies such as Ellington Financial, United Wholesale and Rocket Companies, which owns Redfin.