We are Getting Better

CoreLogic reports this morning that there are still 5.1 million homes underwater in the U.S, down from 6.5 million a year ago.  Way to go collective America.

In about 20 minutes from now, President Obama will address the nation’s homeowners from Arizona to announce that FHA is reducing the cost on their monthly mortgage insurance by 37%.  More great news.

In the job front, Challenger, Gray and Christmas report that job cuts declined again last month; 2014 saw the fewest planned layoffs since 1997.  We are on fire!

Fedspeak about tame inflation continuing for a few years and interest rates remaining low for the same period has helped stocks rally in early trading (DOW is up 266), drawing money out of bonds and ironically placing upward pressure on interest rates.  Touch luck; good time to lock

The Government to the Rescue

Here is something that will effectively be shouted from the housetops as it were: a press release this morning says that on Thursday President Obama will announce that FHA monthly MI premiums will drop from 1.35 to .85%.  A report out today shows that FHA is currently only funding 10% of the market, compared to almost half of the loans issued a few years ago.  Cheaper MI coupled with lower interest rates will go a long way in helping FHA return to its former glory in being a bastion of home ownership. While I highly doubt that our Commander in Chief is the brain behind more affordable mortgage loans, I certainly appreciate him getting behind it, and I believe that Mr. and Mrs. America will too.