KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
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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