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National Association of Realtors president Kenny Parcell commented on the long-anticipated reduction: “FHA’s announcement strikes an appropriate balance between assisting homeowners and ensuring the capital reserve ratio and insurance fund remain strong. NAR has continuously advocated for responsibly reducing mortgage insurance premiums to help qualified home buyers struggling with affordability in the current environment, and we applaud the Administration for this action.
“This reduction will help alleviate some of the financial stress those potential buyers encounter when purchasing a home and allow more people across the country to achieve the American Dream of homeownership.”
Alicia Huey, chairman of the National Association of Home Builders (NAHB), also commended the FHA and HUD’s efforts to make home loans more affordable.
“With mortgage rates doubling over the past year, this action will boost the housing recovery and reduce the cost of housing for creditworthy borrowers, particularly first-time home buyers,” Huey said. “While the White House reports this new premium structure will save home buyers and homeowners an average of $800 per year, it will also help to ease tighter credit conditions in the mortgage market that are harming affordability.”
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