On November 8, 2025, President Donald Trump proposed a 50-year mortgage option to address the U.S. housing affordability crisis, drawing parallels to FDR’s New Deal policies, per Fortune and HousingWire. FHFA Director Bill Pulte, from the prominent Pulte homebuilding family, confirmed the administration’s work on the plan, calling it a “complete game changer” on X, per POLITICO. The proposal, floated amid a 4.7 million home shortage and first-time buyers averaging 40 years old, seeks to lower monthly payments by extending amortization periods, per NPR. This comes after Trump’s directive to Pulte to ramp up housing production via Fannie Mae and Freddie Mac, per The Hill.
The 50-year mortgage would reduce monthly principal and interest on a median $415,200 home (20% down, 6.575% rate) from $2,056 (30-year) to $1,645 (50-year), saving $411/month, per CNBC. However, total interest could double to $389,000 over the loan term, slowing equity buildup and increasing default risk in downturns, per Forbes. Unlike 30-year loans, 50-year options aren’t “qualified mortgages” under the Dodd-Frank Act, lacking investor protections from Fannie and Freddie, per Fox Business. Critics, including Tyler Cowen of Marginal Revolution, warn it could inflate home prices and exacerbate affordability, per Fortune.
The proposal requires legislation to amend Dodd-Frank’s Qualified Mortgage rule, which caps terms at 30 years, per NPR. Treasury counselor Joe Lavorgna downplayed its impact, saying it “unlikely to address affordability,” per The Hill. White House allies blame Pulte for the “band-aid” idea, facing pushback from MAGA supporters and the Wall Street Journal editorial board, which called it a “bad deal” echoing the 2008 bubble, per POLITICO. FHFA is also exploring portable and assumable mortgages, per Fortune. X posts from @ResiClub highlight Pulte’s ResiDay appearance, where he touted the plan.
Homebuilders like PulteGroup (Bill Pulte’s family firm) rose 2.3% post-announcement, but mortgage rates held steady at 6.575%, per Mortgage News Daily. Economists like Brian Wesbury of First Trust see potential for “laser-focused” youth homeownership, but warn of higher sticker prices negating savings, per Fox Business. Compared to extended student loans, longer terms haven’t improved access, per CoinoMedia. The initiative could add $1T to housing debt by 2030, per UBS’s John Lovallo, per. Investors should monitor FHFA updates at fhfa.gov and Fed speeches, as rate cuts could amplify effects.
