On February 22, 2023 the Department of Housing and Urban Development (HUD) announced a reduction in FHA mortgage insurance premiums to make housing more accessible and affordable for first-time homebuyers. The Biden-Harris administration has stressed the importance of addressing disparities in homeownership and wealth in general. A White House Press Release states  "Homeownership is currently the principal source of wealth creation for most American households. But due to a nationwide shortfall in the supply of affordable homes and shifting demand for housing during the pandemic, first-time homebuyers have struggled in recent years to achieve homeownership."

A mortgage insurance premium is a monthly fee paid either to the FHA or a private mortgage insurance (PMI) provider, in addition to the monthly mortgage payment. The reduction intends to take some weight off new home owners by reducing the monthly amount due, or allowing more aspiring home buyers to qualify for a mortgage. The FHA estimates this reduction will save homeowners approximately $800 a year, on average. 

Mortgage Banker's Association's (MBA) President and CEO Bob Broeksmit mentioned "The lower premiums will expand homeownership opportunities by lowering mortgage payments for qualified FHA borrowers, providing critical relief from the steep rise in mortgage rates and home prices just in time for the spring buying season. This will especially help minority homebuyers and low-and moderate-income households who are predominantly served by FHA loans" (2023 MBA News Release).