Since the election, mortgage rates, previously at historic lows, have risen more than 0.5% higher than their 2016 average. In fact, the average 30-year fixed rate mortgage loan was at 4.15% as of Friday afternoon.
Good news! Mortgage insurance premiums on FHA loans are set to decrease by 0.25% on Federal Housing Administration–insured mortgage loans that close on or after Jan. 27. This quarter of a percent may not sound like a big deal. However, the savings do add up. The change is expected to save the average homeowner more than $500 a year!
These savings are much needed. Especially considering that mortgage rates are expected to continue their climb throughout the upcoming year. Experts agree that the change may benefit more than just purchasers of FHA loans as the move is expected to pressure other insurers to drop their rates as well.