How Portable Mortgages Would Change The Housing Market, According To An Economist

On November 12, 2025, U.S. Federal Housing Finance Agency director Bill Pulte announced on X that the federal government is "actively evaluating portable mortgages." These mortgages would allow current homeowners to transfer their mortgage rate to the purchase of a new home. This comes days after Berkshire Hathaway put out a major housing market prediction, forecasting continued rate cuts and a buyer's market. However, economists are split on whether portable mortgages could solve the current high mortgage rate issues.

In an interview on CNN, economist Justin Wolfers said, "I love everything about this and we should do it ... your mortgage should move with you rather than living with your house." However, Jake Krimmel, senior economist at Realtor.com, explained that this would only help those who are already sitting on a mortgage, rather than allow for better access to the market for first-time buyers. Additionally, Wolfers made a point of saying that portable mortgages allow you to take the remainder of what you owe under your current loan and apply it to a new home. Importantly, Krimmel notes that this rate only applies until you pay off the remainder of your loan, with any additional cost needing to be covered under a new mortgage, which would be at the current rate. 

Mortgage rates are highly volatile and are influenced multiple factors — for instance, they can go down with Fed rate cuts. The current environment of homeownership has multiple implications. Firstly, the percentage of first-time homeowners has reached an all-time low, only making up 24% of all home buyers in 2024, according to the National Association of Realtors. 

Portable mortgages aim to loosen a stagnant market, as the Federal Housing Finance Agency (FHFA) reported that it credited much of the rising rates to a lock-in effect. Here, owners stick with their current lower rate rather than sell and take on a higher-rate mortgage, currently sitting above 6%. This effect is what portable mortgages combat, allowing homeowners who took advantage of low mortgages during the COVID-19 pandemic and earlier to re-enter the buyer's market. However, Krimmel noted that he believes that while the lock-in effect is limiting mobility, it is not the only thing holding back the market. He also points out broader affordability issues holding back home buyers, as the consumer price index continues to rise. Krimmel makes a final point that more mobility would lend itself to more demand, raising prices for those who rent and homeowners without mortgages looking to buy new homes. This could continue to increase the amount of money needed to afford a house.