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Alleviating the country’s housing challenges looks to be top of mind for the Trump administration. In an executive order signed by the president on his first day back in office, Donald Trump called upon the heads of all executive departments and agencies “to deliver emergency price relief, consistent with applicable law, to the American people” in an effort to improve the nation’s housing supply and affordability challenges.
Although much of the power to improve housing supply lies with state and local governments — due to the structures of the nation’s zoning laws —trade groups are calling for a “reasonable reduction” in mortgage insurance premiums on Federal Housing Administration (FHA) loans.
“With elevated home prices and mortgage rates, first-time and low- to moderate-income buyers are struggling to break into the market,” a spokesperson for the National Association of Realtors® (NAR) wrote in an email. “Prudent reductions to the FHA mortgage insurance premiums have the potential to alleviate some of the financial stress these potential buyers encounter when purchasing a home.”