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Housing affordability hinges on boosting starter-home supply

FHFA Director Bill Pulte is weighing cuts to the number of credit reports required for a mortgage, aiming to reduce closing costs amid tight starter-home inventory.

Reported · Written up by our desk · Residential

HousingWire argues that housing affordability will not improve through looser lending, cheaper credit reports, or rate cuts if starter-home supply remains tight, saying additional demand would likely push prices higher. The outlet points to an FHFA-led focus on reducing frictions around mortgages, including consideration of requiring fewer credit reports per transaction to lower closing costs, and expanding competition in credit report services. HousingWire also cites the cost of a typical three-bureau, tri-merge credit report at about $80 to $100, framing it as one example of the type of savings policymakers are exploring. The piece concludes that the core issue is not too little financing but too few starter homes priced for ordinary families, calling for scaled construction through smaller lots, new subdivisions, and state-level zoning reform.

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