On February 22, 2023, the U.S. Department of Housing and Urban Development (“HUD”) announced a 30 basis point reduction to the annual mortgage insurance premium charged to borrowers with FHA-insured mortgages. HUD estimates that this reduction will have a significant impact on housing affordability:
“The premium will be reduced from 0.85 percent to 0.55 percent for most homebuyers seeking an FHA-insured mortgage, which could mean an estimated savings of $678 million for American families in aggregate by the end of 2023 alone. The reduction will benefit an estimated 850,000 borrowers over the coming year, saving these families an average of $800 annually.”
Full Memorandum
