President Donald Trump downplayed criticism of the potential creation of a 50-year mortgage product, saying it would help more Americans afford monthly payments on homes.
"It's not even a big deal," Trump said in an interview with Fox News that aired on Monday. "All it means is you pay less per month. You pay it over a longer period of time. It's not like a big factor."
Extending the length of a mortgage to 50 years from the standard 30-year period would reduce monthly payments for borrowers, but it would also mean buyers build equity much more slowly and would pay far more interest over the lifetime of the loan.
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Critics of the plan, including Georgia Republican Representative Marjorie Taylor Greene, have assailed the idea as being a giveaway to banks and mortgage lenders.
Discussions about a 50-year mortgage bubbled up over the weekend when Trump posted
Federal Housing Finance Agency chief Bill Pulte on Saturday posted on social media that "thanks to President Trump, we are indeed working on The 50 year Mortgage - a complete game changer."
The Trump administration's focus on lowering the monthly cost of homeownership follows a series of Democratic victories last week when candidates won over voters by focusing on affordability and cost-of-living issues.
It's unclear exactly how the US government could compel banks to offer longer-term home loans.
White House Economic Director Kevin Hassett on Monday told reporters that the Trump administration is closely studying the idea, but suggested Congress may need to get involved.
"There's a lot of legal analysis, but if it requires legislation, then it wouldn't be imminent," he said.
"The average age of a first-time homebuyer has gone up by about 10 years, in just a few years, and it's something that we're very serious about addressing," Hassett added.
The average for 30-year, fixed loans is 6.22%, data from Freddie Mac show. That's slightly down from rates that exceeded 7% in 2023, but far higher than the sub-3% rates available in the wake of the 2020 pandemic.
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The Federal Reserve cut its benchmark rate by a quarter-point in its meeting last month, and Federal Reserve Chair Jerome Powell warned investors not to count on another cut in December.
In September, housing inventory reached the highest level since 2019, according to a report released last week by analytics firm Cotality. Price increases have slowed in recent months, but steep jumps in home values in recent years have put strain on affordability.
