FHA fee cut attracts more first-time buyers

WASHINGTON – July 29, 2015 – The Federal Housing Administration’s (FHA) reduction in mortgage insurance premiums on FHA loans appears to be having an impact on homeownership.

The cuts – which average $900 per year – may be prompting first-time and millennial buyers to enter the housing market: FHA loans were used in 23 percent of financed home purchases in the second quarter compared to 19 percent during the same period one year earlier, according to RealtyTrac.

“So far, the FHA premium reduction is having a bigger impact on getting millennial first-time buyers and other low down-payment borrowers, such as former homeowners returning to the housing market, off the fence [compared to other federal programs],” says RealtyTrac Vice President Daren Blomquist.

Source: MarketWatch (07/25/15) Goldstein, Daniel

© Copyright 2015 INFORMATION, INC. Bethesda, MD

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: