Great news for First Time Homebuyers
The FHA has reduced its annual mortgage insurance premium by 30 basis points (from 0.85% to 0.55%).
What does this mean? Slightly more buying power.
A 400k FHA loan would previously have required a mortgage insurance premium of $283.33/month. That same premium is now just $183.33/month, a savings of $100.00/month or approximately 15k in additional buying power.
As the economy continues to show strength, rates are increasing to account for stronger-than-expected growth, a tight labor market, and sticky inflation. The Fed has indicated they intend to continue raising rates.
Average Rates (U.S. weekly averages as of Friday, 3/2/2023 source: Freddie Mac’s Primary Mortgage Market Survey®)
30-Year Fixed @ 6.65%
15-Year Fixed @ 5.89%
Provided by David Blackmon, Lumen Mortgage