Summary
President Donald Trump's administration is moving away from a 50-year mortgage proposal. The proposal aimed to make mortgages more affordable but faced criticism for potentially increasing debt and interest payments. The administration is now exploring other options to reduce home-buying costs.
Key Facts
- Federal Housing Finance Agency director Bill Pulte stated that the White House is no longer considering the 50-year mortgage proposal.
- The idea was initially supported by President Trump and suggested by Pulte in November.
- Economists criticized the idea, citing increased debt levels and high interest costs.
- Mortgage delinquencies have risen, making homeownership difficult for many Americans.
- President Trump had promised to lower mortgage rates but has faced challenges in doing so.
- The administration is exploring other ways to lower homeownership costs, such as directing Fannie Mae and Freddie Mac to buy mortgage bonds.
- The original aim of the 50-year mortgage was to offer lower monthly payments but could lead to a slower build-up of home equity.
