President Trump’s portable mortgage push could let you keep your 3% rate, but experts warn it may backfire

Core Viewpoint - The Trump administration is exploring the introduction of portable mortgages to encourage homeowners to sell their homes, which may help alleviate the current stagnation in the housing market due to high interest rates [1][4]. Group 1: Portable Mortgages - A portable mortgage allows homeowners to transfer their existing mortgage and interest rate to a new home, avoiding the need for a new loan when moving [2]. - If the new home costs more than the current one, homeowners would need to pay the difference in cash or secure an additional loan [2]. Group 2: Current Market Conditions - A significant portion of American homeowners, approximately 52.5%, have mortgage rates below 4%, while the average 30-year fixed mortgage rate has remained above 6% since 2022 [3]. - High interest rates are discouraging homeowners from moving, which is contributing to a stagnant housing market [4]. Group 3: Potential Impact and Criticism - The introduction of portable mortgages could incentivize homeowners to sell, potentially opening opportunities for new buyers in the market [4]. - Critics express concerns that portable mortgages could disrupt the U.S. housing market, particularly as U.S. mortgages are bundled into mortgage-backed securities, which are crucial for bank liquidity and new loan issuance [5].