For nearly a century, the 30-year fixed mortgage has been the backbone of the American housing market. It brought stability, predictable payments, and the ability to refinance when rates dropped. Today, more than 90% of homeowners hold a 30-year mortgage and more than 80% of them locked in rates below 6%.
That stability is now one of the biggest reasons the market feels “stuck.” Homeowners don’t want to trade a 3% rate for a 7% one, and buyers are entering a market where prices and rates are both historically high. As a result, mobility has stalled, affordability has tightened, and first-time buyer ages have climbed to 40, the highest ever recorded.
To help unfreeze things, the Federal Housing Finance Agency (FHFA) is exploring three potential alternatives:
1. Portable mortgages
2. 50-year mortgages
3. Crypto-backed mortgages
Each one aims to help buyers and sellers but each brings its own risks and unanswered questions. Here’s what homeowners and future buyers in the Triangle should know.
1. Portable Mortgages: Mobility Without Giving Up Your Current Rate
Imagine being able to take your current mortgage rate with you when you move. That’s the promise of a portable mortgage.
Why homeowners love the idea: During the pandemic, millions of homeowners locked in 2–3% mortgages. A portable mortgage would let them carry that “golden ticket” to their next home, freeing them from the lock-in effect that’s frozen the market.
But there’s a catch: Economists warn this could create a “haves vs. have-nots” scenario. Buyers with ultra-low rates could outbid those without them, pushing home prices even higher including here in the Raleigh and Triangle Area.
Portable mortgages might increase inventory, but they can also supercharge competition.
2. The 50-Year Mortgage: Lower Monthly Payment, Higher Lifetime Cost
A 50-year mortgage is exactly what it sounds like, a home loan stretched across half a century.
Pros:
Lower monthly payment
More flexibility for first-time buyers who feel priced out
Cons:
Much higher lifetime interest (up to 86% more than a 30-year loan)
Significantly slower equity growth
Minimal impact on overall affordability
You may save ~$250/month on a $400,000 home — but you’ll pay far more over time.
3. Crypto-Backed Mortgages: Useful for a Few, Risky for Many
These loans allow you to use cryptocurrency as collateral instead of selling it.
This is not a mainstream option since only about 14% of U.S. adults own crypto and the volatility means lenders could issue margin calls if prices drop. While it might help a small segment of high-net-worth buyers, it won’t move the larger market.
The Real Problem: We Don’t Have Enough Homes
All three proposals aim to help with financing, not inventory. And when demand increases without supply increasing, prices rise.
That’s why economists say these ideas may help certain buyers in the short term, but none fundamentally fix affordability.
Here in the Triangle — Wendell, Knightdale, Durham, Raleigh, and the surrounding areas...the real driver behind rising home values is simple: we don’t have enough homes for the number of people trying to live here.
Until supply increases, mortgage innovation can only go so far.
So What Should Buyers and Sellers Do Today?
Sellers: If you’re sitting on a low rate, you’re not alone but demand in the Triangle is strong, and well-prepared homes are still selling with great results.
Buyers: Focus on what you can control like payment comfort, loan structure, and long-term plans. Don't chase complicated products that may add more risk than benefit.
Homeowners: Track your equity and stay informed. The market may shift as inventory grows, but fundamentals in our area remain strong.
If you want help understanding how today’s mortgage landscape affects your plans, I’m always here to break it down in plain English.
