FHFA Director Bill Pulte announced that Fannie Mae and Freddie Mac will remain in conservatorship and the government plans to sell up to 5% of their shares back to the public. A decision on an IPO is expected this quarter or early next year. President Donald Trump and Pulte announced work on a 50-year mortgage option intended to lower initial monthly payments for some buyers, though details remain uncertain. Longer-term loans typically carry higher interest rates due to greater risk and uncertainty, and a 50-year mortgage would likely command a rate premium. Analyst Logan Mohtashami estimates a 50-year rate about 42–57 basis points above the 30-year.
"Speaking at ResiDay 2025 on Friday, FHFA Director Bill Pulte , stating that Fannie Mae and Freddie Mac will remain in conservatorship-easing industry fears that an exit could put upward pressure on mortgage rates. Instead, he said the government plans to sell up to 5% of their shares back to the public. Pulte added, "I anticipate that the president will make a decision either this quarter or early next year as it relates to the IPO.""
"Lenders charge more for longer-term loans because they take on additional risk. The further out the repayment period stretches, the greater the uncertainty around inflation, interest rates, and credit risk. Historically, the 30-year fixed mortgage rate has averaged about 57 basis points higher than the 15-year rate. If a 50-year option were introduced at scale, borrowers could expect an even steeper premium-likely adding another fraction of a percentage point to the rate in exchange for lower monthly payments."
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