Summary
President Donald Trump is considering a 50-year mortgage plan to make buying homes more affordable. Experts say this could lower monthly payments but result in much higher interest costs over time. The idea is still in early stages, and the impact on the housing market is unclear.
Key Facts
- President Trump has suggested introducing a 50-year mortgage to make housing more affordable.
- Housing experts are concerned that these longer loans will result in nearly double the interest payments compared to a 30-year mortgage.
- Current mortgage rates in the U.S. have been between 6% and 7% since 2022.
- Joel Berner, a senior economist, believes the plan could lower monthly payments and boost homebuyer demand, but also raise home prices.
- Fewer home sales have occurred as mortgage rates have remained high, which some hope the 50-year mortgage could address.
- Critics like James Fishback argue that the plan could worsen affordability for future generations by increasing total interest paid.
- The exact implementation details by the Trump administration and the Federal Housing Finance Agency remain unclear.
- Investors' reactions and potential higher interest rates for 50-year loans are major uncertainties.
