The Trump administration is advancing a proposal for a 50-year fixed-rate mortgage, a move officials believe could significantly enhance homeownership accessibility for many Americans facing high housing prices and affordability challenges. Federal Housing Finance Agency Director Bill Pulte emphasized the potential impact of the initiative, describing it as a “complete game changer.” His statement followed a tweet from Trump that drew comparisons between the proposed mortgage and the 30-year mortgage initiatives promoted by President Franklin D. Roosevelt during the New Deal era.
With current fixed mortgage rates lingering above 6% for over three years, many potential homebuyers have been sidelined by exorbitant costs. Data from Redfin reveals that the median American household is currently allocating approximately 39% of its monthly earnings towards mortgage payments—this percentage exceeds long-term affordability standards. The existing “lock-in effect” has also contributed to the stagnation of the housing market, as many sellers are reluctant to part with their homes and lose the low-interest rates they secured prior to the rise in borrowing costs in 2022. Consequently, this dynamic has intensified affordability issues, particularly for younger buyers.
As prospective buyers explore alternatives due to elevated mortgage rates and soaring home values, adjustable-rate mortgages are seeing a resurgence in demand, now making up over 10% of mortgage applications—the highest proportion since 2021, according to the Mortgage Bankers Association. Pulte criticized Federal Reserve Chairman Jerome Powell for maintaining high-interest rates, asserting that such an approach is burdensome for homebuyers. He stressed a commitment to ensuring homeownership for young Americans, positioning the 50-year mortgage as just one of many strategies being devised.
The proposed 50-year mortgage aims to reduce monthly payments by prolonging the repayment period. For example, Fannie Mae’s estimates indicate that a $400,000 home financed at a 6.575% interest rate with a 20% down payment would result in monthly payments of $2,788 for a 30-year term, $2,640 for 40 years, and $2,572 for 50 years.
However, the proposal faces criticism regarding potential pitfalls. Detractors express concerns that extending mortgages to such a long duration may lead to increased overall interest payments and slow the accumulation of home equity, stunting borrowers’ financial progress. Economist Tyler Cowen argues that while the proposal may lower monthly payments, it could simultaneously elevate house prices, delay equity growth, and raise default risks during economic downturns. This outcome could disadvantage first-time buyers, who may encounter higher entry costs.
The burgeoning challenges in the housing market have resulted in the average age of first-time homebuyers rising, recently reaching a peak of 40 years in 2025, according to the National Association of Realtors. Remarkably, this statistic indicates that the typical first-time homebuyer is equally as likely to be nearing retirement as they are to be embarking on their adult education.
During his recent participation in the ResiDay conference hosted by ResiClub, Pulte unveiled additional proposals, including the possibility of Fannie Mae and Freddie Mac taking equity positions in private-sector companies. He articulated his vision of Fannie and Freddie leveraging their influence to engage in strategic partnerships akin to prior arrangements, such as a recent deal with Intel.
The 50-year mortgage proposal exemplifies the administration’s intent to tackle the challenges hindering homeownership, aiming to create more opportunities for aspiring buyers amidst a turbulent housing landscape.