The U.S. Department of Housing and Urban Development announced on January 20th that it was suspending indefinitely the FHA premium rate cut that had been expected to take effect on January 27th. HUD announced the reduction on January 9th, citing the continuing strength in FHA’s reserve fund. The reduction would have saved the average FHA borrower $500 per year.
According to NAR estimates the rollback of the reduction will result in roughly 750,000 to 850,000 homebuyers facing higher costs and 30,000 to 40,000 potential buyers unable to purchase a home.
