According to the NAR, the Federal Housing Administration’s implementation of a 50 basis point reduction in its annual mortgage fee back in January 2015 has increased the purchase of mortgages.
NAR research estimated the reduced fee would lower the payment on a $200,000 mortgage by nearly $1,000 annually, drawing in 90,000 to 120,000 additional homebuyers per year.
This suggests an increase of 15 percent to 24 percent endorsements for mortgage purchases in 2015 compared to 2014.
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