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.
