A plan to roll back a cut in mortgage insurance premiums was short lived.
According to MarketWatch, on Friday, the Federal Housing Administration said that a reduction of 25 basis points in insurance premiums “has been suspended indefinitely.” The plan was announced just days earlier by outgoing Housing and Urban Development head Julian Castro.
After a two-month long surge in mortgage rates, the reduction was meant to help borrowers gain mortgage access.
While some progressive groups hailed the cut as a means of helping more borrowers access mortgage credit, it wasn’t universally seen as a big game-changer. For one thing, it was too small to mean big savings for borrowers: FHA estimated it at an average of $500 per year.
Advertisement
Related Stories
Economics
Housing Share of GDP in Q1 2024 Rises Above 16%
The increase marks the first time GDP has surpassed 16% since 2022
Economics
Shelter Costs Drive Inflation Higher Than Expected in January
January Consumer Price Index data show inflation increased more than anticipated as shelter costs continue to rise despite Federal Reserve policy tightening
Economics
Weighing the Effects of the Fed's and Treasury's Latest Announcements
The upshot of the Jan. 31 announcements is that while mortgage rates will stay higher for longer, they're likely to hold steady