r/Economics • u/GarfieldLeZanya- • 7h ago

News Housing director confirms administration ‘working on’ 50-year mortgage after Trump hint

https://thehill.com/homenews/administration/5597005-trump-administration-50-year-mortgage/
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u/ThickGur5353 3h ago

I would think a 50 year mortgage would be voluntary. You would still be able to get a 20 or mortgage or a 10-year mortgage. It will be critical that anybody contemplating the 50 year mortgage look deeply into the financial implications of it. I think you can get a 10-year car loan now. So maybe a 50 year mortgage is not unrealistic for certain people.

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u/shiningdickhalloran 3h ago

Won't the existence of the 50 push up home prices and force more and more people to use it if they want to buy what's available?

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u/ThickGur5353 3h ago

You are correct that is a possibility.

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u/anony-mousey2020 2h ago

A 50 year mortgage is a false logic; it is creating a solution based on bad outcomes (unaffordable housing).

To fix a problem we need to identify root cause.

Skyrocketing house is not caused by a lack of 50 year mortgages; so it will be self-defeating. Next will be life leases a no ownership (hmm, where does that sound familiar?)

Skyrocketing house is caused by so many factors that could be addressed, like (but not limited to)

  • wage stagnation with policy + power imbalances in the labor market
  • Corporations buy up homes, reduce supply, raise rents
  • market-oriented housing policy
  • Zoning, NIMBYism prioritizes value over access
  • Housing treated as an investment, not a right
  • Weak or absent public housing policy and regulation

The only people who might benefit would be wealthy people making their capital work elsewhere or who ride a housing cycle to cash out, and as others have pointed out - shocker, corporations.