Mortgage Rates Nationally

Now that the holidays are over, we can begin to take a look at the upcoming Spring Real Estate Market.  An announcement by the Obama administration that the Federal Housing Administration would lower its annual insurance premiums brings high hopes for 2015.  According to the agency’s estimates, this change could make it possible for a quarter-million borrowers to buy their first homes.  Among factors contributing to those hopes are continued low interest rates, new 3% down-payment programs from Fannie Mae and Freddie Mac, and an improving economy.

With the F.H.A. in a strong enough position to broaden access to credit, annual premiums will be reduced to 0.85 percent of a loan’s value from the previous 1.35 percent.  This 0.5% drop in F.H.A. annual mortgage insurance premiums means that while making a down payment on a home may be easier for first-time home buyers, higher interest rates may follow.