Trump Administration Considers 50-Year Mortgage Terms

Bill Pulte, the Secretary of the Federal Housing Finance Agency (FHFA), announced on Saturday that the Trump administration is “working” on a plan to implement 50-year mortgage options for homebuyers.

Pulte mentioned in a post on the social platform X that, “Thanks to President Trump, we are actually working on a ’50-year mortgage’ that is a complete game changer.” This initiative seems to echo historical responses to economic challenges.

Earlier in the day, President Trump shared an image of himself alongside former President Franklin D. Roosevelt, who was known for the New Deal that established the 30-year mortgage as a means to aid recovery from the Great Depression.

Despite his previous campaign focus on affordability for young individuals, Trump has encountered obstacles lately, particularly with rising prices. It’s a tricky reality, as affordability is becoming harder to pin down.

In fact, searches on Google for “mortgage help” have surged to their highest level since 2009, with adjustable-rate mortgages (ARMs) gaining popularity. In September, ARMs constituted about 10% of all mortgage applications, a significant uptick compared to an average of 6% since 2008, according to the Mortgage Bankers Association (MBA).

Home prices and interest rates remain elevated. Research from Redfin indicates that the typical household now allocates around 38.4% of their monthly income towards mortgage payments, which is quite a substantial figure.

In May, Trump expressed interest in potentially taking Fannie Mae and Freddie Mac public. Originally enacted by Congress, these key players in the mortgage market were privately held companies prior to the 2008 housing crisis.

Trump wrote on Truth Social that he is “very seriously considering” this move and aims to make a decision “in the near future.” He suggested that these entities are performing well financially, hinting that it might be the right time for them to enter the public market.

Pulte confirmed last month that his agency is evaluating the possibility of bringing these two companies to market, possibly by the end of 2025 at the earliest.

Aside from market strategies, Pulte has gained attention for his criticisms of figures like New York Attorney General Letitia James, who is facing mortgage fraud charges related to documents from the FHFA.