WASHINGTON – The Trump administration is promoting a plan to allow homeowners to transfer their existing mortgage rates to modern properties, a move officials say will address affordability concerns and unlock the housing market. However, financial experts are raising doubts about the feasibility and potential consequences of such a policy, warning it could destabilize the mortgage-backed securities market and ultimately drive up prices.
The idea, dubbed a “portable mortgage,” gained traction after William Pulte, director of the Federal Housing Finance Agency (FHFA), announced the agency was “actively evaluating” the concept on X, formerly known as Twitter. This followed President Trump’s suggestion of considering 50-year mortgages and a move by Freddie Mac and Fannie Mae to purchase $200 billion in mortgage bonds, an effort to temporarily lower rates.
A portable mortgage would allow homeowners to carry their current interest rate with them when they sell and buy a new home, rather than being forced to take out a new loan at prevailing rates. According to a recent report by Moneywise and distributed by Yahoo Finance, this could be particularly appealing to homeowners locked into low rates who are hesitant to sell in the current high-interest environment. However, the report also highlights a significant hurdle: if the new home costs more than the current one, buyers would need to cover the difference in cash or secure a separate loan.
The potential disruption to the existing mortgage system is a key concern. Currently, U.S. Mortgages are bundled and sold as mortgage-backed securities, providing banks with capital to issue new loans. As Moneywise reported, CNN has warned that portable mortgages could “interrupt the engine that drives the U.S. Housing market.”
Kevin Thompson, CEO of 9i Capital Group, told Newsweek earlier this month that allowing homeowners to transfer low rates would “spike demand overnight” and “drive up prices,” ultimately failing to address affordability issues. Realtor.com senior economist Jake Krimmel echoed this sentiment, stating that while portable mortgages could theoretically help, the “lock-in effect” – the reluctance of homeowners to sell due to low rates – accounts for only about half of the recent decline in housing mobility. He added that portable mortgages would primarily benefit those who already have favorable rates.
The administration’s push for housing policy changes comes amid ongoing debate over affordability and rising costs. President Trump has repeatedly claimed his administration is “crushing” inflation and that the economy is stronger than ever, pointing to gains in the stock market and 401(k)s. However, data indicates that while inflation has cooled from its peak – rising 2.4% over the year ending January 2026, down from 9.1% in June 2022 – the cost of essential goods remains elevated. Bloomberg reported that grocery prices have risen about 30% since January 2020, electricity costs are up 41%, and car insurance has increased by 56%.
These efforts also follow scrutiny of other administration policies. In February, financial advice columnist Michelle Singletary of the Washington Post suggested conditions resembling those that led to the 2008 financial crisis were “returning,” with rising mortgage delinquency rates among lower-income households. Data from the Federal Reserve Bank of New York showed that mortgage delinquency rates for the lowest income bracket jumped from 0.5% in 2021 to nearly 3% at the end of 2025.
Politico reported in February that President Trump pressured Congress to amend an affordable housing bill to prevent investors from benefiting from new policies, a move that faced resistance even within his own party. Representative Troy Downing (R-Mont.) expressed reservations about broadly prohibiting institutional investors, stating the need for clarity on specific practices.
