50-year mortgage? NAR would rather focus on increasing inventory

The 50-year mortgage is currently one of the hottest topics in housing, so it is unsurprising that the proposal floated by the Trump administration came up in conversation at the National Association of Realtors (NAR) 2025 NXT conference. 

In an Advocacy Scoop podcast recording session Thursday evening, the potential of a 50-year mortgage and the greater challenge of housing affordability was brought up in conversation between NAR executive vice president Shannon McGahn and NAR’s vice president of advocacy Patrick Newton. 

“NAR’s research team made the news last week when we had some pretty headline making news about the average age of first-time homebuyers rising to 40, and soon after the 50-year mortgage was suggested,” Newton said. 

While a 50-year mortgage can cut down a buyer’s monthly mortgage payment by a few hundred dollars, the higher interest rate and longer term means buyers are paying even more in interest and it will take them longer to unlock the equity in their home.

“We’ve had conversations with key administration officials and others that there are loan products that we can absolutely modernize and have an entire ecosystem that is going to be offered, but we want to make sure that it’s also pro-consumer,” McGahn said. 

Although McGahn said NAR welcomes the interest in affordability and is happy to discuss modernizing loan products, the trade group’s main focus when it comes to affordability is “unleashing inventory,” which she said will “create more supply so more folks can have equity and can build generational wealth.”

“This is what we think these government programs should be focused on,” McGahn said. “The 50-year mortgage is one that we caution is not the right fit for everybody — is it better than renting for 50 years? Absolutely, but there are many risks that come with that too. So, while the federal government is looking at solutions, we would argue that there are several in advance of that, like more homes on the market or doubling the capital gains tax exemption for homes that could be sold to first-time buyers.”

Looking ahead, NAR’s advocacy team is focused on changes to the capital gains tax exemption rules and while Republicans and Democrats disagree on exactly what changes should be made, NAR takes comfort in knowing that this is an issue with bipartisan support, which it feels will result in meaningful changes for consumers.