In late January, the new Trump administration froze a number of policy changes made in the waning days of the Obama Presidency. One such change, a 25 basis point decrease in the mortgage insurance premium (MIP) charged by the Federal Housing Administration (FHA), was previously analyzed by NAR Research. Here we report local impacts of the change, which are large in both high cost areas and in areas where FHA usage is highest.
NAR Research previously estimated that 30,000 to 40,000 home purchases would be lost in 2017 and another 750,000 to 850,000 homebuyers would face higher costs. These effects were re-estimated at the local level using 2015 HMDA figures for purchase mortgages. The results vary widely across the country.