KUALA LUMPUR, June 18 (Bernama) -- Bursa Malaysia’s key index finished marginally higher, supported by strong buying interest in consumer-related counters, amid mixed performance across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 1.40 points, or 0.08 per cent, to 1,711.39 from Tuesday's close of 1,709.99. The key index opened 12.36 points firmer at 1,722.35 and moved between 1,711.31 and 1,722.63 throughout the session. Market breadth was negative, with losers leading gainers 678 to 493, while 549 counters were unchanged, 1,016 untraded and 34 suspended. Turnover increased to 4.50 billion units worth RM3.45 billion from 3.93 billion units worth RM3.45 billion on Tuesday.
In a bid to tackle America’s deepening housing affordability crisis, President Donald Trump has floated a bold idea — a 50-year mortgage. The pitch? Lower monthly payments for homebuyers already squeezed by high rates and record prices.
But within days, the proposal is losing momentum, as housing experts warn it could backfire — costing homeowners far more in the long run and doing little to solve the real problem: a lack of affordable housing supply.
Key Takeaways
1. Lower payments, higher total costs
Yes, a 50-year mortgage means smaller monthly payments.
But here’s the catch: it massively increases total interest paid.
According to the National Association of Realtors’ chief economist Lawrence Yun, for a US$420,000 loan, borrowers would save US$236 a month, but pay an extra US$360,000 in interest over the loan’s lifetime — pushing the total cost above US$1.1 million.
That means homeowners would barely build equity for the first 40 years. The supposed “affordability fix” ends up delaying wealth creation and trapping people in long-term debt.
2. The housing crisis isn’t just about loan length
Industry leaders say the proposal misses the real issue — too few homes on the market.
“Extending mortgages to 50 years doesn’t fix supply,” said David Dworkin, CEO of the National Housing Conference. “It just inflates demand and pushes prices up even further.”
In short, cheaper monthly payments won’t help if there aren’t enough homes to buy — or if prices rise because of it.
3. Regulatory and practical hurdles ahead
For 50-year loans to hit the market, the Consumer Financial Protection Bureau (CFPB) would need to amend the Qualified Mortgage rule, which caps loan terms at 30 years. That’s a process that could take at least a year.
Even if Fannie Mae and Freddie Mac wanted to step in, they’re currently barred from purchasing “non-qualified” mortgages — meaning most lenders wouldn’t touch the product without rule changes or new protections.
4. A political soundbite, not a near-term policy
Federal officials are already walking back expectations.
Trump’s own housing finance director Bill Pulte first called the idea a “game changer,” then tempered it as “one of many potential tools.”
Meanwhile, White House economic director Kevin Hassett confirmed the plan isn’t imminent, especially if new legislation is required.
The Bigger Picture
The proposal reveals a deeper political tension: Americans are struggling with housing affordability at a generational low, and policymakers are desperate to offer relief. But experts argue that longer mortgages only delay the pain — keeping people in debt longer and slowing wealth creation.
With the median first-time homebuyer now 40 years old, a 50-year loan means most would still be paying off their mortgage into their 90s.
Bottom Line
Trump’s 50-year mortgage proposal grabs headlines, but the math doesn’t lie — lower monthly payments today could mean far greater costs tomorrow.
Until supply constraints are addressed, the U.S. housing market’s affordability problem will remain, no matter how many years you stretch a mortgage over.
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