"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."
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.
Read at Fast Company
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