Tuesday, July 29, 2014

Increase in FHA Fees Challenges Housing Market

Increase in FHA Fees Challenges Housing Market
Federal Housing Administration’s rate increases in mortgage insurance have caused buyers to walk away and transactions to fall through, according to the National Association of REALTORS®. "Higher fees at the FHA have had an impact on affordability," writes Ken Fears, NAR director of regional economics and housing finance. "While some buyers were able to shift to other more affordable programs, many consumers were shut out of the market for ownership."  NAR recommends that the FHA reduce high annual mortgage insurance premiums and eliminate the insurance requirement for the life of the loan, On a positive note See Why the Second Half of 2014 Will Be Better Than the First, read more.

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