A for sale sign is seen outside a home in Arlington, Virginia. On Monday, the Trump administration confirmed it is working on a 50-year fixed-rate mortgage to pull more buyers into the housing market. File Photo by Alexis C. Glenn/UPI | License Photo
Nov. 10 (UPI) — The Trump administration is working on a plan to introduce a 50-year fixed-rate mortgage with the goal of making homeownership more affordable for millions of Americans, as some analysts warn of hidden costs.
Federal Housing Finance Agency Director Bill Pulte confirmed the report, saying the proposed 50-year loan would lower monthly payments to bring more buyers into the housing market.
“Thanks to President Trump, we are indeed working on The 50-year Mortgage — a complete game changer,” Pulte wrote Saturday in a post on X. Trump has compared the plan to the 30-year mortgage from President Franklin D. Roosevelt‘s New Deal.
“We hear you. We are laser focused on ensuring the American Dream for young people and that can only happen on the economic level of home buying,” Pulte added. “A 50-year mortgage is simply a potential weapon in a wide arsenal of solutions that we are developing right now: stay tuned.”
The housing market has grown stagnate over the past three years as younger Americans are unable to afford the payments that come with a 30-year fixed rate at more than 6% interest. To add to that, inventory is depleted as homeowners are locked in to their houses with the lower interest rates of the COVID-19 economy.
Both Pulte and Trump have blamed Federal Reserve Chairman Jerome Powell for hiking interest rates to curb inflation and then keeping rates “artificially high.”
While a 50-year mortgage would lower monthly payments, it would also prevent homeowners from building equity as quickly. Over the life of the loan, the amount of interest paid to lenders would be 40% higher, according to analysts who also warn about the need for congressional approval.
“Fannie and Freddie could establish a secondary market for 50-year mortgages in advance of policy changes. They even could buy mortgages for their retained portfolios,” Jaret Seiberg, a financial services and housing policy analyst at TD Cowen, wrote in a note to clients.
“Yet this would not alter the legal liability for lenders. It is why we believe lenders will not originate 50-year mortgages absent qualified mortgage policy changes,” Seiberg said, adding congressional approval could take up to a year to meet the definition of a qualified mortgage under the Dodd-Frank Act.
Several papers lead on the aftermath of a speech by the Chancellor Rachel Reeves, in which she did not rule out a U-turn on Labour’s manifesto general election pledge not to hike income tax. Despite the chancellor saying she will make “necessary choices” in the Budget, Conservative leader Kemi Badenoch says Britain watched the speech “in horror” and that Reeves is “blaming every else” for chaos, according to the Daily Express.
A hike in income tax would be the first since 1975, and break a “50-year taboo” against the policy, the i Paper reports. Economists cited by the paper say Reeves must add 2p on income tax if she wants to make the UK’s public finances “more resilient, and avoid having to return for more” in the near future.
“We will all have to do our bit” is the chancellor’s quote featured in the Times. The paper reports more lines from Reeves’ speech where she vowed to put “national interests” before “political expediency”. Elsewhere, a photo of Sir David Beckham receiving his knighthood at Windsor Castle is front and centre.
“Reeves’s waffle bomb” is the Daily Mail’s take. The paper also reports that Labour has been accused of “educational vandalism” after ministers announced they would scrap a number of Tory reforms on education. The changes will include cutting GCSE exams and simplify primary school tests. “Labour dumbs down schools” is the headline.
“Make it fair, Rachel” is the Daily Mirror’s headline as it leads with a plea from trade unions to the chancellor, calling on her to tax the wealthiest before targeting ordinary workers. Sharing the top spot, “bend a knee like Beckham” is the paper’s take on Sir David Beckham’s knighthood.
The Daily Star’s headline is “Rach sparks tax rise fury”, as it reports on the chancellor’s “first pre-Budget speech for 50 years – hinting at huge tax rises”.
“Reeves puts Britain on notice,” says the Independent. The paper reports that a think tank has warned that a 2p income tax rise might not be enough to fix the country’s finances. A smiling Sir David Beckham holding his knighthood medal also fills the front page as the paper declares: “Arise Sir Becks!”
“Finally… Sir Goldenbawls” follows the Sun, as it reports that Sir David Beckham admitted he was “crying for months” after learning of his long-awaited knighthood. “It’s been been a very emotional day,” he said after the ceremony at Windsor.
The Guardian’s front page spotlight’s Sir David calling his knighthood “my proudest moment”. Also prominent, the paper reports on Health Secretary Wes Streeting’s warning that NHS staff are bearing the brunt of “ugly” racism. In an interview with the paper, Streeting says incidents of verbal and physical abuse based on people’s skin colour are happening so often that it has become “socially acceptable to be racist”.
The Telegraph says that pressure is mounting on the BBC’s senior executives after a leaked dossier revealed “serious and systemic” editorial bias. The paper says Conservative leader Kemi Badenoch has called for “heads to roll” over the allegations. A BBC spokesperson said: “While we don’t comment on leaked documents, when the BBC receives feedback it takes it seriously and considers it carefully.”
Finally, the Metro celebrates the story of the LNER rail staff worker who has been praised as a “hero” for saving passengers’ lives during the Cambridgeshire train attack. The paper quotes Samir Zitouni’s family who say: “He’s always been a hero.”
Chancellor Rachel Reeves features on many of the front pages after she warned voters about the “necessary” choices to be made at this month’s Budget to balance the books.
The i Paper highlights that such a hike would be the first since 1975, and break what the paper calls a “50-year taboo” against the policy.
The Daily Mail labels the chancellor’s Downing Street speech on Tuesday as “all bluster” and a “waffle bomb”.
According to the Daily Telegraph, some within Labour have been left fearing the worst. An unnamed Labour MP tells the paper they believe putting up taxes will “scotch whatever limited chances” the party has of being re-elected, and that breaking the manifesto pledge could leave them with “no credibility”.
The Times says ministers have raised concerns that an increase in income tax could see them lose some voters “forever”.
The front page of the Metro has a photograph of the rail worker, Samir Zitouni, who protected passengers during the knife attack on a train in Cambridgeshire on Saturday. More details were released about him yesterday. The paper quotes his family who say “he’s always been a hero”.
The Daily Telegraph reports that Sir Keir Starmer’s deal to hand over sovereignty of the Chagos Islands to Mauritius has been delayed. The paper says it is because a Conservative peer submitted an amendment to the legislation, to try to make the government consult the Chagossians before going ahead.
A Foreign Office spokesman said there had been a lack of notice given regarding the amendment, and a Lords vote to confirm the Bill would be moved to a later date.
And most of the papers feature photographs of Sir David Beckham receiving his knighthood at Windsor Castle yesterday. “Bend a knee like Beckham” says the Daily Mirror while the Daily Mail goes for: “Arise Sir Becks.”
