Bill Pulte, director of the Federal Housing Finance Agency, said the White House is likely stepping back from a proposed 50‑year mortgage aimed at lowering monthly payments. He indicated the administration has other priorities and that any executive action would not force institutional owners to sell existing homes. Officials are instead weighing restrictions on future bulk purchases by large institutional investors as one of 30–50 ideas being considered. Experts caution that longer‑term loans may carry higher interest rates, which could offset monthly savings.
White House Appears To Back Off 50‑Year Mortgage Plan, Shifts Focus To Curbing Institutional Home Purchases
Federal Housing Finance Agency Director Bill Pulte said Friday the Trump administration appears to be moving away from a previously proposed 50‑year mortgage plan intended to lower monthly costs for homebuyers and is prioritizing other measures to address housing affordability.
“I think we have other priorities,”Pulte told reporters when asked whether the White House was still pursuing the 50‑year mortgage idea.
His comments come days after President Trump, who campaigned on improving housing affordability, pushed for an executive action to restrict purchases of single‑family homes by what he called “large institutional investors.” In a Truth Social post, Trump wrote, “People live in homes, not corporations,” while also blaming the Biden administration for inflation.
What Administration Officials Are Saying
Pulte emphasized that any expected executive action would not force institutional investors to sell homes they already own. Instead, officials said they are considering measures to prevent future bulk purchases by large investors, which is one of “30 to 50 different ideas” the administration is reviewing to address affordability.
“What we’re going to look to do is to seek to prevent new homes from being bought by large institutions that are taking the home ownership dream away from Americans and putting it on corporate balance sheets,” Pulte said, adding he expected the president to announce ideas at the World Economic Forum in Davos.
Why The 50‑Year Mortgage Lost Momentum
Pulte had earlier described a 50‑year fixed mortgage as a potential “game changer.” The idea drew attention after a social post comparing the proposal to Franklin D. Roosevelt’s introduction of the 30‑year fixed mortgage during the Great Depression — a change that helped broaden access to homeownership.
However, housing analysts and officials raised concerns that a 50‑year loan could carry higher interest rates and ultimately reduce or eliminate the modest monthly savings compared with a conventional 30‑year mortgage. Housing and Urban Development Secretary Scott Turner said last month that “more research” is needed before proceeding with such a proposal.
Role Of Institutional Buyers
Large institutional buyers — including private equity firms and hedge funds — have faced criticism for purchasing single‑family homes in bulk, which critics say reduces supply and pushes up costs for renters and prospective homeowners. According to the American Enterprise Institute, investors defined as owning 100 or more properties accounted for roughly 1% of the single‑family housing stock as of last June.
While the administration appears to be de‑emphasizing the 50‑year mortgage, it is evaluating targeted steps to limit future institutional purchases as part of a broader package of proposals aimed at improving affordability.
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