Many in the industry have praised the move to lower premiums, but some remain skeptic about how much of an impact the cut will have on the housing market.
The White House has confirmed the Obama Administration is directing the FHA to reduce annual mortgage insurance premiums from 1.35% to 0.85%.
In a speech to be delivered tomorrow in suburban Phoenix, the President may announce a reduction of FHA mortgage premiums.
Historically, the mortgage industry experiences a slowdown during the holiday season, but this time around it was particularly quiet. Meanwhile, rates have hit a 19-month low.
And so it begins. Mortgage companies are beginning to announce their options for home buyers that will allow for down payments as low as 3%
President Obama signed an act this week that included HUD’s new budget and delayed a program that would have saved borrowers hundreds a year.