Donald Trump says 50-year home loans would be ‘no big deal’

Some conservative lawmakers and economists have criticised the idea, saying it would keep people in debt for most of their lives. Republican Representative Marjorie Taylor Greene wrote on X, “In debt forever, in debt for life!” while conservative commentator Mike Cernovich called them “lifetime mortgages.”

FHFA considers new mortgage options

US Federal Housing Finance Agency (FHFA) Director Bill Pulte said on Saturday that the agency was “working on” a 50-year mortgage plan after Trump posted an image on social media with the caption “50-year Mortgage.”

“A complete game-changer,” Pulte wrote on X. He added that the FHFA was also exploring options to ease repayment for five-, 10-, and 15-year loans. “At Fannie and Freddie, we are evaluating how to do assumable or portable mortgages in a safe and sound manner,” he said, referring to the government-backed mortgage firms Fannie Mae and Freddie Mac.

The FHFA did not respond to requests

White House spokesman Davis Ingle said, “The White House and the entire Trump administration are appreciative of Mr. Pulte’s efforts, and everyone is working together to implement the president’s policies.”

Many US households continue to face rising costs for housing, food, fuel, and education, even though inflation has slowed.

Trump dismissed recent polls suggesting voters are unhappy with the economy. “I don’t know that they are saying that. I think polls are fake. We have the greatest economy we’ve ever had,” he told Fox News.

While home sales increased in September, pending sales stayed flat despite lower mortgage rates. Rates fell after the Federal Reserve cut its benchmark interest rate to the 3.75%-4.00% range last month, but concerns about the job market have weighed on demand.

The average 30-year fixed mortgage rate was 6.19% in October, down from 7.04% in January, according to Freddie Mac.

Daryl Fairweather, chief economist at Redfin, wrote on X that it was unclear how much a 50-year mortgage would reduce monthly payments, as interest rates for such loans are unknown. “A more effective, long-term solution is to fix the supply side,” she said.