"The Trump administration is moving forward with a plan to introduce a 50-year fixed-rate mortgage, a reform officials believe could make homeownership more feasible for millions of Americans amid soaring prices and mounting affordability concerns. "Thanks to President Trump, we are indeed working on The 50-year Mortgage - a complete game changer," Federal Housing Finance Agency Director Bill Pulte said Saturday in a statement released on social media."
"With 30-year fixed rates remaining stuck above 6% for more than three years, high homeownership costs have kept many would-be homebuyers out of the market. According to Redfin data, the median U.S. household is currently spending approximately 39% of its monthly income on mortgage repayments-well above long-term affordability benchmarks. Meanwhile, the "lock-in effect" has prevented many prospective sellers from putting their homes on the market because they don't want to give up the ultra-low rates they secured before borrowing costs jumped in 2022."
Federal officials are advancing a plan to introduce a 50-year fixed-rate mortgage to make homeownership more attainable for millions facing soaring prices and affordability strain. The administration links the proposal to historic 30-year mortgage policies and emphasizes its potential as a 'game changer.' Persistent 30-year rates above 6% have driven mortgage burdens to roughly 39% of median household income and discouraged sellers from listing homes because of pre-2022 ultra-low rates, creating market gridlock. Demand for adjustable-rate mortgages has risen, exceeding 10% of applications. Officials criticize Federal Reserve policy for sustaining high rates while pursuing measures to expand homebuying access.
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