Trump Proposes 50-Year Mortgages to Aid Housing Affordability

President Donald Trump proposed introducing 50-year mortgages to address the ongoing housing affordability crisis, a move that has sparked widespread debate among economists, policymakers, and housing experts. The idea, floated on social media over the weekend, draws parallels to the 30-year mortgage established during Franklin D. Roosevelt's administration in the 1930s and 1940s as part of New Deal efforts to stabilize the housing market.

Trump described the proposal simply during a Monday interview on Fox News, stating, "All it means is you pay less per month. You pay it over a longer period of time." The White House and the Federal Housing Finance Agency (FHFA), which oversees major mortgage buyers Fannie Mae and Freddie Mac, have indicated they are exploring the concept. FHFA Director Bill Pulte called it "a complete game changer" in a social media post, adding that the agency is developing a range of solutions, including potential adjustments to shorter-term mortgages.

At its core, the proposal seeks to lower monthly payments for homebuyers facing record-high prices and interest rates. The median U.S. home price stood at $415,200 in September, according to the National...