The FHA announced important changes to the pricing of its mortgage insurance on January 8, 2015. This change will help to shore up the long-term solvency of its mortgage insurance fund, improve affordability and sustainability for most borrowers, and price in a significant number of borrowers locked out of the market in recent years. It will also provide a strong signal, along with solid recent employment growth and lower mortgage rates, to first-time buyers who might be on the fence. Its not the silver bullet, but an important step toward normalization of the housing market.

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Read more on the NAR Economists’ Outlook Blog

To learn more about FHA loans go to http://portal.hud.gov/hudportal/HUD?src=/buying/loans

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