Statement from NAHB Chairman Alicia Huey on HUD’s Decision to Lower FHA Premiums

Alicia Huey, chairman of the National Association of Home Builders (NAHB) and a custom home builder and developer from Birmingham, Ala., today issued the following statement regarding the announcement by the Department of Housing and Urban Development (HUD) that the Federal Housing Administration (FHA) has reduced its annual mortgage insurance premiums:

“NAHB commends HUD for moving to make home loans more affordable by lowering the FHA annual mortgage insurance premium by 30 basis points to 0.55% for most new buyers. 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. While the White House reports this new premium structure will save home buyers and home owners an average of $800 per year, it will also help to ease tighter credit conditions in the mortgage market that are harming affordability.”