In one of his first acts, President Donald Trump reversed a quarter point decrease in the Federal Housing Administration mortgage insurance premium. The reduction in premiums would have decreased monthly payments for thousands of new, low- and moderate-income borrowers.
NAR President William E. Brown released this statement in response to the reversal: “According to our estimates, roughly 750,000 to 850,000 homebuyers will face higher costs, and 30,000 to 40,000 new homebuyers will be left on the sidelines in 2017 without the cut. We’re disappointed in the decision but will continue making the case to reinstate the cut in the months ahead.”
Speak with a REALTOR® in your area about any trends they have seen in the use of FHA loans. Chat with prospective homeowners about whether the FHA Mortgage Insurance Premium rates cut reversal affects their thoughts on buying a home. Talk with mortgage lenders about their thoughts on the impact of the cut reversal.