Tobias Peter

The reduction currently under consideration by the Biden Administration would lead to even faster home price appreciation, especially in areas with moderate FHA presence, says Tobias Peter, the American Enterprise Institute’s director of housing research.

Default risks soar in minority neighborhoods during challenging economic times because, data shows, homes there are overpriced relative to incomes. Zoning and other changes could make loans more affordable by boosting housing stock and driving down prices.

One segment of the market, at least, has proved more resilient than many feared early on in the crisis.

The FHFA’s attempt to move some of its balance sheet into the private sector could leave investors with greater liabilities than they were initially told.

The government is pushing up mortgage prices to dangerous levels by easing credit standards in a market where supply is low but demand is high.

The agency should resist renewed calls to lower insurance premiums. Doing so would increase demand and raise home prices, negating any proposed benefits.