FHA Announces Lower Mortgage Insurance Premiums

Earlier this morning, HUD released details of a long-anticipated plan to reduce the annual MIP (mortgage insurance premiums) that are currently charged to FHA borrowers by 30 Basis Points (0.3% of the loan balance). HUD Secretary Marcia Fudge made the announcement today at Bowie State University. The premium will be reduced from 0.85 percent to 0.55 percent for most FHA borrowers, which could benefit up to 850,000 borrowers over the coming year, saving these families an average of $800 annually. “...today, we are building on the steps we’ve taken to make homeownership more affordable, and HUD is acting to ensure people feel comfortable purchasing a home as they build toward their future. As we reduce housing costs for people with FHA mortgages, we continue our work to address longstanding disparities in homeownership,” says Secretary Fudge. Details from HUD Release: “The 30 basis point annual MIP reduction will apply to almost all Single Family Title II forward mortgages insured by FHA. Further, the reduction applies to all eligible property types, including single family homes, condominiums, and manufactured homes, all eligible loan-to-value ratios, and all eligible base loan amounts. The average FHA borrower purchasing a one-unit single family home with a $265,000 mortgage will save approximately $800 this year as a result of FHA’s premium reduction. For the same borrower with a mortgage of $467,700 – the national median home price as of December 2022 – FHA’s annual MIP reduction will save them more than $1,400 in the first year of their mortgage. In addition to providing overall savings to borrowers, a lower annual MIP can also help more people qualify for a mortgage.”

February 22, 2023 Download our Mobile App: Download our Mobile App: Housing News FHA Announces Lower Mortgage Insurance Premiums Earlier this morning, HUD released details of a long-anticipated plan to reduce the annual MIP (mortgage insurance premiums) that are currently charged to FHA borrowers by 30 Basis Points (0.3% of the loan balance). HUD Secretary Marcia Fudge made th... (read more) Housing News Rising Rates Sideline Home Buyers Mortgage application volume took a big hit last week. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of that volume, plummeted 13.3 percent on a seasonally adjusted basis compared to the prior week and was down 4.0 ... (read more) Mortgage Rate Watch Mortgage Rates Little-Changed After Fed Minutes The Federal Reserve directly controls the shortest term lending rates. Mortgage rates are dictated by longer-term bonds in the open market, but traders of those bonds are frequently influenced by the outlook for Fed rate hikes/cuts. The ... (read more) MBS Commentary This Is How They Get Ya! This Is How They Get Ya! Bonds weathered the storm of a Treasury auction and the Fed meeting minutes today without any significant drama. Trading levels started the day stronger and managed to hold onto... (read more) Rob Chrisman Database-Mining, Credit, Marketing, Servicing Products; Non-QM, DSCR News; FHA MIP Cut The MBA’s servicing conference is taking place, and it is an important subject, along with the impact of the 30bp cut in MIP for FHA borrowers. Owning servicing rights certainly helped the bottom lines for many lenders last year, some would say it “s... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.88% +0.01% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.88% +0.01 0.00 15 Yr. Fixed 6.07% 0.00 0.00 30 Yr. FHA 6.26% +0.01 0.00 30 Yr. Jumbo 6.35% 0.00 0.00 5/1 ARM 6.65% 0.00 0.00 30 Yr. VA 6.27% +0.02 0.00 Updates Daily - Last Update: 2/22 15 Yr. Fixed Rate 6.07% +0.00% Rate Change Points Freddie Mac 30 Yr. Fixed 6.32% +0.20 0.00 15 Yr. Fixed 5.51% +0.26 0.00 Updates Weekly - Last Update: 2/16 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.39% +0.21 0.70 15 Yr. Fixed 5.85% +0.21 0.81 30 Yr. Jumbo 6.26% +0.30 0.43 Updates Weekly - Last Update: 2/15 MBS / Treasuries UMBS 30YR 5.0 98.16 +0.25 Price / Yield Change MBS UMBS 5.0 98.16 +0.25 UMBS 5.5 99.77 +0.20 GNMA 5.0 98.59 +0.30 GNMA 5.5 100.13 +0.28 Pricing as of: 2/22 5:31PM EST 10 Year US Treasury 3.9195 -0.0350 Price / Yield Change US Treasury 2 YR Treasury 4.697 -0.032 5 YR Treasury 4.155 -0.020 7 YR Treasury 4.071 -0.021 10 YR Treasury 3.920 -0.035 30 YR Treasury 3.915 -0.055 Pricing as of: 2/22 5:31PM EST Latest Video Almost all Fed participants backed a 25 bps hike The Fed has had the most aggressive rate hike cycle in 40 years: Former Fed... St. Louis Fed Pres. Bullard: U.S economy is stronger than we thought James Bullard's comments don't change market dynamics: Kayne Anderson Rudni... Around the Web HUD Reduction of Federal Housing Administration (FHA) Annual Mortgage Insurance Premium (MIP) Rates CNBC Fed minutes show members resolved to keep fighting inflation CNBC Wall Street has purchased hundreds of thousands single-family homes since the Great Recession. Here's what that means for rental prices Calculated Risk Blog Final Look at Local Housing Markets in January CNBC Wells Fargo seeks to catch faster-growing rivals by boosting engagement with rich clients CNBC Fed's James Bullard pushes for faster rate hikes, sees 'good shot' at beating inflation Eye on Housing Additional Declines for New Home Size Calculated Risk Blog CoreLogic: "US Annual Rent Price Growth Dropped by Nearly Half in December" Eye on Housing Multifamily Built-for-Rent Share Rises Calculated Risk Blog The Normal Seasonal Changes for Median House Prices Calculated Risk Blog AIA: Architecture Billings "Continue to Contract" in January CNBC Treasury yields dip as investors anticipate Fed meeting minutes Calculated Risk Blog Wednesday: FOMC Minutes

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