One way President Donald Trump aims to make homes more affordable for Americans is by creating a 50-year mortgage — an idea Bill Pulte, the U.S. Director of Federal Housing, called a “game changer” in an X post. Although, right now you can’t get a 50-year mortgage from major lenders due to regulatory policies included in the Dodd-Frank Act, according to Realtor.com. See Next: 5 Ways Trump’s ‘Big, Beautiful Bill’ Could Impact Your Wallet Trending Now: How Middle-Class Earners Are Quietly Becoming Millionai ...

Home affordability is impacting monetary policy, financial markets, and American politics.The only way to fix it is to build more housing supply,Fix housing, fix America. 🇺🇸 https://t.co/4Cawpp74Jj ...

The White House says it is considering backing a 50-year mortgage to help alleviate the home affordability crisis in the country. But the announcement drew immediate criticism from policymakers, social media and economists, who said a 50-year mortgage would do little to resolve other core problems in the housing market, such as a lack of supply and high interest rates.Bill Pulte, director of the Federal Housing Finance Agency, said on X over the weekend that a 50-year mortgage would be “a complete game chan ...

watch nowIn another attempt to make homebuying more affordable, President Donald Trump floated the idea of a 50-year mortgage in a social media post. In response, Federal Housing Finance Agency director Bill Pulte, who oversees Fannie Mae and Freddie Mac, posted that they are "working on it," and that it would be, "a complete game-changer."The purpose of a longer-term mortgage would be to lower the monthly payment for homeowners. The longer the term of the loan, the smaller the principal needed each month t ...

Many people talk about increasing rents & home affordability, but the explosion in grocery prices over the last few years is crippling to the average American family. ...

Housing Affordability - Interest rate cuts are a good start to tackling home affordability issues [1] - More housing supply is needed to bring prices down [1] Housing Supply - Local city councils need to deregulate to enable more housing construction [1]

Affordability Challenges - Affordability remains a significant challenge for homebuyers due to high home prices, which necessitate large down payments [1] - In addition to down payments, buyers must also consider other out-of-pocket costs associated with purchasing a home [2] Down Payment Requirements - The minimum down payment required varies by loan type, with conventional loans typically requiring 5%, FHA loans requiring 3.5% for borrowers with a credit score of 580 or higher, and no down payment required for VHA and USDA loans [6] Closing Costs - Closing costs can add an additional 2% to 6% to the loan amount, significantly increasing the total cash needed for a home purchase [4] - For example, on a $350,000 home purchase with a 5% down payment, the buyer may face a cash shortfall of $6,500 to $19,950 after accounting for closing costs [5] Financial Strategies for Buyers - Buyers facing a cash shortfall have several options, including saving more money for a larger down payment, using gift money from family, applying for down payment assistance programs, or negotiating seller concessions to cover closing costs [8]

Core Insights - The housing market has become increasingly difficult for typical households, with only 28% of homes being affordable [1] Financial Considerations - A household with an income of $200,000 and no debt may find that purchasing a $600,000 home could consume around 40% of their take-home income after accounting for property taxes and other costs [2][3] - Monthly payments for a $600,000 home with a 10% down payment at a 7.00% interest rate would be approximately $4,572.63, significantly increasing monthly housing costs [3][5] - Experts recommend saving about 1% of the home's value annually for repairs, which would add an additional $500 per month to housing expenses, raising total monthly costs to around $5,073 [4] Affordability Concerns - Spending 40% of income on housing may not be advisable as it limits financial flexibility for other expenses and savings [4]

Core Insights - Mortgage rates have increased, with the average rate on a 30-year fixed mortgage rising to 6.34% from 6.3% last week, and 6.12% a year ago [1][2] - The average rate on a 15-year fixed mortgage climbed to 5.55% from 5.49% last week, compared to 5.25% a year ago [2][3] - Despite the rise in mortgage rates, they remain below the 52-week average of 6.71%, indicating a potential for continued buyer confidence in the market [2] Mortgage Market Trends - The increase in mortgage rates has coincided with a 4% rise in pending home sales in August, surpassing analyst expectations of a 0.2% increase, suggesting a rebound in buyer activity [4] - Lower mortgage rates in recent months have contributed to increased buyer confidence, as indicated by the uptick in pending home sales [2][4] Economic Context - Mortgage rates are expected to remain stable as markets assess the implications of a potential government shutdown, which could affect monetary policy decisions [5] - The uncertainty surrounding the government shutdown may lead potential buyers to delay home purchases, particularly in areas with a higher concentration of federal workers [6]

Housing Market Affordability - Home affordability is a major problem in America [1] - Incomes need to increase by 60% to improve home affordability [1] - Home prices need to fall by 38% to improve home affordability [1] - Mortgage rates need to be cut by 4% or more to improve home affordability [1] Market Outlook - The required changes in income, home prices, and mortgage rates are unlikely to happen [1]