WASHINGTON — The Trump administration is proposing a plan to offer 50-year mortgages.
It would be a major change from the current 30-year housing loans. It’s part of a push from the White House to help first-time buyers break into the housing market.
Housing costs surged during the COVID-19 pandemic and haven’t come down much ever since. That high upfront cost has kept many potential first-time buyers out of the market.
“That demand is still there,” said Jason Waugh, president of Coldwell Banker Affiliates.
New data shows the American dream of homeownership is becoming increasingly out of reach — especially for young people.
For the first time in history, the median age of a first-time home buyer is now 40 years old, according to the National Association of Realtors.
“The average age of a first-time homebuyer has gone up by about 10 years in just a few years,” said Kevin Hassett, director of the National Economic Council.
The Trump administration is now floating several policies aimed at lowering the barrier for homeownership.
First, what’s called a “portable mortgage” — allowing people to take their current interest rates with them when they move, potentially opening up more inventory in the market.
“It’s something that we’re very serious about addressing,” Hassett said.
The second would allow for a 50-year mortgage. Experts say that would lower monthly payments but would also mean buyers pay significantly more in interest over time.
Top economic advisors at the White House say even with the higher long-term cost, the extended mortgage would allow young buyers to start building equity.
“But don’t forget that you get the equity if the price goes up, and on average prices (tend) to increase,” Hassett said.
“Certainly, inventory and affordability are issues that we have to solve for,” Waugh said.
Nationwide, the median sale price for a single-family home has leveled off since the pandemic-era housing boom — but remains high, currently around $410,000. Listing prices were slightly less than that in October in Broward County, but much higher in Miami-Dade, at nearly $600,000.
“More than seven in 10 aspiring homeowners are delaying major moments in life — whether that’s children, marriage, changing jobs or a profession — until they can buy a home,” Waugh said.
Experts say these moves are only pieces of the puzzle in solving the housing crisis.
Another important step, they say, is simply building more homes to increase the supply.
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