A trial balloon floated over the weekend by the Trump administration has sparked a firestorm across both political and financial circles: the idea of introducing 50-year mortgage terms for American homebuyers. What began as a post on Truth Social from President Donald Trump quickly evolved into a full-blown policy debate, revealing stark divisions within the MAGA movement, the housing market, and even Trump’s own inner circle.
On The Ingraham Angle Monday night, Fox News host Laura Ingraham didn’t hold back, pressing Trump on what she called “significant MAGA backlash.” Critics of the proposal argue it’s little more than a bank-friendly gimmick that kicks the dream of full homeownership decades down the road, stretching payments well into retirement years — or even beyond.
“Is that really a good idea?” Ingraham asked.
Trump, brushing off the criticism, downplayed the significance of the proposal. “It’s not even a big deal,” he said. “All it means is you pay less per month. You pay it over a longer period of time. It’s not like a big factor. It might help a little bit.”
But his tone stood in sharp contrast to that of Federal Housing Finance Agency Director Bill Pulte, who took to X just days earlier to declare the idea “a complete game changer.” Pulte, a longtime housing reform advocate, has framed the extended mortgage terms as a way to make monthly payments more manageable for younger buyers priced out of today’s housing market.
Yet even within the Trump orbit, the move seems to have caught many off guard. According to a Politico report, senior White House officials were blindsided by Pulte’s Saturday post and are reportedly fuming at what they see as an unvetted policy shift. Business leaders and lawmakers — particularly fiscal conservatives — have joined in the criticism, arguing that such a plan benefits lenders far more than borrowers and could artificially inflate housing demand without solving the underlying issue of affordability.
And that issue is growing more urgent by the month. According to the National Association of Realtors, the median home sale price is now $410,800 — a 25% increase since 2019 — while average mortgage rates have doubled since late 2021. As a result, the median age of first-time homebuyers has reached an all-time high of 40. The American dream of owning a home, once a cornerstone of the middle class, is slipping further out of reach for millions.
The 50-year mortgage idea might offer some short-term relief in monthly payments, but critics say it does so at a cost: long-term debt, slower equity building, and delayed financial freedom. For a movement that prides itself on promoting self-reliance, lower taxes, and long-term prosperity, it’s no surprise that Trump’s base is split.
What’s striking is that both the Left and Right seem united — for once — in their skepticism. One sees it as a bank-driven scheme, the other as economic sleight of hand. And caught in the middle is a younger generation of would-be homeowners facing record prices, stubborn inflation, and interest rates that have made traditional mortgages look like luxury items.
