Members of the Trump administration have floated a new proposal to address the nation’s housing crisis. It’s a dud. They should stick to the basics.

President Donald Trump took to Truth Social last weekend to advocate for the creation of a 50-year mortgage loan. Bill Pulte, director of the Federal Housing Finance Agency, then called the idea a “complete game changer.” But the math shows otherwise.

The move comes as the age of first-time homebuyers has risen significantly because of higher housing and mortgage costs. Just four years ago, those purchasing their first homes were, on average, 33 years old. The number today is 40. The National Association of Realtors reports that first-time purchasers now represent just 21 percent of buyers, an all-time low.

The White House push to address housing prices is understandable. But a 50-year mortgage risks burying buyers with more debt than they can afford and offers less opportunity to build equity.

A traditional 30-year mortgage entails 360 payments over three decades, often at a fixed interest rate. Interest costs are front-loaded, meaning monthly payments for the first few years go primarily to pay off borrowing costs rather than principle. Adding another 20 years to the life of the loan would decrease monthly payments by a few hundred dollars, but stick borrowers with a massive increase in interest costs over the life of the loan.

According to Realtor.com, a buyer purchasing a $400,000 home at 6.25 percent interest, with 10 percent down, would pay almost $380,000 more in interest over a 50-year loan than with a 30-year instrument. And this assumes that interest rates are the same for both loans, which is unlikely. Lenders will demand higher rates for 50-year notes, just like 30-year mortgages carry higher rates than 15-year housing loans.

“You’re going to be paying almost all interest for the first 10 years. It’s really akin to an interest-only loan at that point,” Chris Hendrix, senior vice president for the home loans unit of NBKC Bank in Kansas City, told NPR. “That’s true for a 30-year loan too: for the first 10 years, you’re paying mostly interest on that loan. But it would look even worse on a 50-year loan for sure.”

During a downturn, this would increase the likelihood that buyers find themselves underwater because they haven’t accrued significant equity. It also increases the risks that more first-time buyers overextend themselves thanks to the lure of lower monthly payments. The last thing the nation — particularly Las Vegas — needs is a repudiation of moral hazard and a repeat of 2008.

Trump and Interior Secretary Doug Burgum have previously expressed support for market-oriented policies intended to spur U.S. housing construction, and this approach is a far more promising solution than a 50-year mortgage. Burgum supports releasing unsensitive federal lands in Nevada and the West for housing construction, an eminently sensible solution. The administration should also lean on states and local jurisdictions to back off restrictive zoning regulations and other policies that increase costs and discourage development.

Higher housing prices reflect an imbalance between supply and demand. In this case, the country hasn’t built enough housing in recent years to keep costs down and provide additional options for first-time buyers. Rather than proposing changes that could drown many borrowers in red ink, the White House should launch a full-court press to increase supply and let the market do the job it does so well.

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