Reduction In Mortgage Insurance Premiums “Suspended Indefinitely”

A plan to roll back a cut in mortgage insurance premiums was short lived.

According to MarketWatch, on Friday, the Federal Housing Administration said that a reduction of 25 basis points in insurance premiums “has been suspended indefinitely.” The plan was announced just days earlier by outgoing Housing and Urban Development head Julian Castro.

After a two-month long surge in mortgage rates, the reduction was meant to help borrowers gain mortgage access.

While some progressive groups hailed the cut as a means of helping more borrowers access mortgage credit, it wasn’t universally seen as a big game-changer. For one thing, it was too small to mean big savings for borrowers: FHA estimated it at an average of $500 per year.

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