WASHINGTON—The Trump Administration is floating a new housing idea—“portable mortgages”—as it looks for alternatives after its 50-year mortgage proposal drew heavy backlash, Newsweek reported.
According to Newsweek, the White House is now exploring whether homeowners could take their existing low mortgage rate with them when they move, a concept that could help some consumers locked into sub-4% or sub-5% loans avoid today’s 6%-plus rates. FHFA Director Bill Pulte told Newsweek the administration is “actively evaluating portable mortgages.”
The proposal comes as high home prices and elevated interest rates keep many Americans from buying or selling. Newsweek cited recent median-price data showing homes at more than $415,000, paired with average mortgage rates near 6.3%.
Portable mortgages—common in some other countries, such as the U.K.—would allow homeowners to shift their current mortgage, including its interest rate and basic terms, from one property to another. A LendingTree analyst told Newsweek this could be a “game-changer” for those who feel trapped in their homes because moving would mean giving up a far cheaper mortgage.
But Newsweek noted that economists see limits. A Realtor.com analyst said portability might free up some inventory and marginally boost sales but would mainly benefit existing owners with low rates. He added that only about half of today’s reduced mobility is tied to rate lock-in, meaning portable mortgages are unlikely to restore normal market activity on their own.
Newsweek emphasized that details remain scarce, and the Administration has not announced how such mortgages would be structured or applied.