President Barack Obama announced on Wednesday that the Federal Housing Administration will soon be cutting its annual insurance premiums from 1.35 percent to .85 percent.
“This action will make home ownership more affordable for over two million Americans in the next three years,” said Julián Castro, U.S. Department of Housing and Urban Development Secretary. “Since 2009, the Obama administration has taken bold steps to reduce risks in the mortgage market and to protect consumers. These efforts have made it possible to take this prudent measure while also ensuring FHA remains on a positive financial trajectory. By bringing our premiums down, we’re helping folks lift themselves up so they can open new doors of opportunity and strengthen their financial futures.”
Obama is set to further discuss housing market improvements during his scheduled speech in Phoenix on Thursday.
Image via flickr/Chris Potter