It doesn’t affect the luxury markets as much, as most buyers are paying cash, or a hefty down payment. The overall effect is about a $10,000 reduction in buying power, if you are looking at FHA loans on your next home purchase.
HUD sent out an announcement just an hour after President Trump was sworn in on Friday, stating that the cuts have been suspended indefinitely. The letter, found here, stated that the FHA will issue a subsequent Mortgagee Letter at a later date should this policy change. “FHA is committed to ensuring its mortgage insurance programs remains viable and effective in the long term for all parties involved, especially our taxpayers,” the letter stated.
Just moments after President Trump was sworn in on Friday, the Department of Housing and Urban Development announced it is indefinitely suspending the reduction of FHA mortgage insurance premiums, undoing a cut announced by the Obama administration only a few weeks ago. The suspension is effective immediately.