HUD is making a significant change to FHA monthly insurance premiums, they will be increasing by .25% across all products. The change is estimated to bring in another $3 billion to shore up the FHA. This will definitely put pressure on the lower end of the market. Combine this increase with the recent rate spike, it looks like the Spring selling season will disappoint.
Turns out giving underqualified buyers underpriced loans isn't a great way to stay solvent.