50-Year Mortgages: A Game-Changer or Debt Trap?

U.S. President Donald Trump's idea of 50-year mortgages aims to make homeownership more affordable, despite concerns over rising interest costs and prolonged debt. Critics argue it may delay equity building, while proponents believe it could benefit investors. Housing affordability remains a crucial issue facing American households.

U.S. President Donald Trump has sparked debate by suggesting 50-year mortgages as a potential solution to housing affordability challenges. Supporters of Trump's proposal view it as a way to reduce monthly payments, although critics highlight the downside of extended payment terms and increased interest costs.

Federal Housing Finance Agency Director Bill Pulte revealed that work is underway to develop such long-term mortgage options, labeling them a 'complete game-changer.' The agency is also considering other flexible mortgage terms, aiming to enhance housing affordability amid ongoing cost-of-living concerns.

Despite lower mortgage rates, housing market conditions remain tough, with first-time homebuyer ages now averaging 38 years old. President Trump and his administration may address these issues in an executive order, looking to alleviate pressure within the housing market, incentivize home purchases, and potentially benefit specific financial firms.

(With inputs from agencies.)