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A new Moody's Analytics report suggests that there will be 45,000 additional new- and existing-home sales in 2015 as a result of the Federal Housing Administration's decision to reduce annual mortgage insurance premiums from 1.35 percent to 0.85 percent.

Moody's also notes that single-family housing starts will jump by 20,000 as a result of the premium cut. The report estimates that the premium cut will reach its full impact in mid-2016, when it expects annualized home sales to increase by 100,000, with 40,000 additional single-family housing starts in 2016 also.

The report also suggests that increased housing activity will spur 140,000 more jobs and will lower the unemployment rate by 0.1 percentage points. Moody's also foresees an increase in refinancing activity as a result of the premium cut.

President Barack Obama announced the premium cut earlier this month. NAFCU strongly supports this change, which is expected to help make mortgages more affordable to more consumers and further advance the housing recovery. The association supported the change in a letter sent jointly with other trades earlier this month.