The Biden administration may cut mortgage costs for new and low-income homebuyers in a move to make home buying more affordable, The Wall Street Journal reports.
Industry officials are calling on the Federal Housing Administration to lower the premiums it charges on loans that insure between $50 and $70 per month per buyer, though some analysts say the federal agency is unlikely to make such deep cuts. reports the newspaper.
Biden’s moves to make home buying more affordable so far have focused on easing restrictions on household supplies, which can drive up costs. The United States is missing about 2 million houses, Doug Duncan, chief economist at Fannie Mae, told Bloomberg..
Last month, the Federal Reserve raised its key interest rate by three-quarters of a point, its biggest increase in nearly three decades. Federal Reserve Chairman Jerome Powell suggested another three-quarter point hike was possible at the next Fed meeting later this month, the Associated Press reported.
Borrowing costs in the US rose sharply after the rate increase, with the average 30-year mortgage rate topping 6%, the highest level since before the 2008 financial crisis, and 3% more than at the beginning of the year.
This story originally appeared on Fortune.com
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