Trump calls 50-year mortgages no 'big deal' as right-wing conservatives balk

WASHINGTON - U.S. President Donald Trump downplayed possible 50-year mortgages as a way to make houses more affordable than typical 30-year loans, as some supporters balked at a plan that would have homeowners paying more in interest and taking longer to build equity.

“All it means is you pay less per month. You pay it over a longer period of time. It’s not like a big factor. It might help a little bit,” Trump told Fox News’ “The Ingraham Angle” program on Monday, blaming his Democratic predecessor Joe Biden and the Federal Reserve’s interest rate policies for home affordability concerns.

Conservative lawmakers, influencers in Trump’s Make America Great Again movement, and economists were among those to dismiss the idea, noting that it would take people longer to actually own their homes. Some analysts, however, said it could boost some investors.

Over the weekend on X, Republican U.S. Representative Marjorie Taylor Greene wrote “In debt forever, in debt for life!” while right-wing activist Mike Cernovich reacted with “Lifetime mortgages.”

HOUSING AFFORDABILITY IS KEY ISSUE

U.S. Federal Housing Finance Agency Director Bill Pulte on Saturday said FHFA was “working on” a five-decade-long mortgage after Trump, a Republican, posted an image of himself under the heading “50-year Mortgage” on social media.

“A complete game-changer,” Pulte wrote on X.

“We are also working on ways to give relief in the 5 year mortgage, the 10 year mortgage, and the 15 year mortgage,” he wrote separately on Sunday, offering no details and adding that the agency was examining “assumable 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.

U.S. households are grappling with cost-of-living increases even as inflation has grown at a slower rate. Prices took center stage in last week’s elections that saw Democrats sweep key races as Trump doubles down on his economic agenda.

“I don’t know that they are saying that. I think polls are fake. We have the greatest economy we’ve ever had,” Trump told Fox on Monday.

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

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 at a record high of 38 last year - well above the late-20s reading that was typical in the 1980s.

‘FIX THE SUPPLY SIDE’

Trump has urged more drastic Fed 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 on Tuesday saying home prices remained a priority.

The U.S. 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% after surging 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 what the interest rate would look like compared to a 30 year mortgage,” Daryl Fairweather, chief economist at Redfin, wrote on X. “A more effective, long-term solution is to fix the supply side.”

TD Securities analysts told investors on Monday the 50-year loan idea could take at least one 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 houses, such mortgages also could increase home 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 boost firms such as Ellington Financial, United Wholesale and Rocket Companies, which owns Redfin.