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White House Shelves 50-Year Mortgage Plan as Trump Pursues Other Housing Moves

The shift follows expert warnings over higher lifetime costs plus unresolved legal barriers.

Overview

  • FHFA Director Bill Pulte said the White House has set aside the 50-year mortgage idea, describing housing policy as focused on other priorities.
  • Economists warned ultra-long loans would slow equity building and increase total interest paid, while current qualified mortgage rules bar 40- and 50-year fixed loans.
  • According to a Politico report, the White House is drafting an executive order to let homebuyers use 401(k) or 529 funds for down payments without penalties, though officials have not confirmed details.
  • The reported order may also seek to block large institutional investors from purchasing single-family homes, an approach Trump recently promoted on social media.
  • Separately, Trump directed Fannie Mae and Freddie Mac to buy $200 billion in mortgage-backed securities, beginning with a $3 billion purchase that coincided with mortgage rates briefly dipping below 6% on Friday.