President Donald Trump’s vision of a 50-year mortgage sounds great on paper for homebuyers, lowering their monthly mortgage payment and allowing them a foot in the door of the housing market. Except market pricing doesn’t work like that.
More buyers competing for the same homes could create bidding wars and allow other nearby sellers to ask more. “A 50-year mortgage would increase purchasing power, which generally pushes prices up by expanding the pool of eligible buyers,” explained Matt Brown, realtor at William Raveis Real Estate.
