The American Financial Services Association (AFSA) has announced that the Trump administration is reportedly evaluating a portable-mortgage model. This model would allow homeowners to transfer their existing mortgage rate when relocating.
According to federal housing officials, they are considering a framework that would enable borrowers to transfer an existing home loan, including its interest rate and remaining balance, to a new property when they move. This approach aims to spur mobility, ease tight housing supply, and reduce the "rate-lock" effect that keeps many owners from moving.
Analyses cited in coverage of the proposal indicate that over half of U.S. homeowners with mortgages have locked in rates at or below 4%, primarily during the pandemic era. The potential need to replace these loans with new mortgages at rates closer to 6%–7% discourages many households from selling, contributing to "rate-lock" and limited inventory. Portable mortgages are being discussed as one option to address this issue.
Recent housing-market data highlight strained conditions for buyers and sellers. Sales of previously occupied homes fell to 4.06 million in 2024, marking the weakest level in nearly three decades. Elevated mortgage rates, record-high prices, and a chronic shortage of listings have sidelined many prospective buyers. The median existing-home price reached an all-time high of approximately $407,500 while inventory remained below historic norms.
Founded in 1916, AFSA serves as the primary national trade association for the U.S. consumer credit industry. It represents hundreds of companies across various sectors including auto finance, personal loans, credit cards, mortgage lending, and related services. The association advocates for policies that preserve access to responsible credit and provides members with compliance, advocacy, and education resources.