The Federal Housing Finance Agency (FHFA) Director Bill Pulte announced on Saturday (October 8) that the agency is studying a 50-year mortgage program specially designed for homebuyers.
Pulte responded on the social platform X to President Trump’s suggestion for a 50-year mortgage plan, aiming to help homebuyers alleviate monthly repayment pressure and improve housing affordability. Pulte stated, “Thank you, President Trump, we are indeed pushing for a 50-year mortgage – this will completely change the game.”
Earlier that day, Trump shared a picture on Truth Social showing Franklin Delano Roosevelt’s portrait labeled “30-year mortgage” on the left, and his own portrait labeled “50-year mortgage” on the right.
In the 1930s, Roosevelt’s New Deal established the 30-year mortgage standard to assist American people during the Great Depression. Last year, Trump pledged to reduce the burden of homeownership for young people, but with recent increases in property prices, he is facing challenges.
Meanwhile, American citizens have been searching for “help with mortgage” on Google at the highest level since 2009, with adjustable-rate mortgages (ARMs) also attracting attention.
According to the Mortgage Bankers Association (MBA) data, in September this year, ARMs accounted for 10% of all mortgage applications, reaching a two-year high, exceeding the average of 6% post the 2008 financial crisis. However, property prices and interest rates remain high, with data from the real estate brokerage firm Redfin showing that the median American household spends 38.4% of their income on mortgage payments each month.
In May of this year, Trump mentioned that he was seriously considering taking Fannie Mae and Freddie Mac public and would make a decision in the “near future”. He emphasized that the performance of Fannie Mae and Freddie Mac has been excellent, generating significant cash flow, and it seems to be the right time now.
These two enterprises were initially established by Congress to operate as private companies but received financial support from the Treasury Department. The companies aimed to stabilize the mortgage market and increase people’s homeownership opportunities. After the collapse of the US housing market in 2008, the government took over the two companies, which are now supervised by the FHFA.
In October, Pulte confirmed that Trump is evaluating whether to bring both companies to the market by the end of 2025.
(This article references reports from The Hill)