FHA Premium Pricing How Consumers Are Winning – CoreLogic

This is a somewhat lengthy and very detailed report on the CoreLogic web site. The upshot is that it’s looking like recent changes in the FHA mortgage system have been positive ones. Indications are that the real estate industry and potential homeowners can expect more favorable market conditions, at least for awhile. ~Bill

an excerpt from CoreLogic blog by Stuart Quinn

… So far consumers continue to be the beneficiaries of lower housing financing costs and lower prices at the pump. Consumers are optimistic about this shift, with the Index of Consumer Sentiment figure for January indicating a reading of 98.2, the historical average reading of the survey from 1952 to 2014 is 85. Debates will continue as to what long-term safety and soundness repercussions these policy changes may have for taxpayers as more mortgages become guaranteed by the government without a first-loss private market credit enhancement. The short-term benefits align with the need for increased accessibility for existing and future homeowners. The residential real estate market is historically a key driver in economic recovery and this policy change attempts to harness the economic impact of a robust residential housing market going in to 2015.