President Trump has held office for almost two weeks now and he has made a lot of executive moves since his inauguration. One of the very first of his moves has been lost in the fray, though.
One of Obama’s last policies was reducing the mortgage insurance rate charged to millions of borrowers for the cost of their FHA mortgages. The policy change was scheduled to reduce the MI by about a quarter percent on January 27th, but hours after taking office President Trump repealed Obama’s private mortgage insurance rate reduction.
This equated to maybe $15 or $20 dollars for every $100,000 borrowed and what should be little difference in an individual’s overall payment. This doesn’t sound like much, and to many it won’t change their minds one way or the other when contemplating buying a home. But it could change some buyer’s market perception of affordability.
Will this affect the housing sales as a whole? That is yet to be seen, but it is another piece of the real estate market that’s always changing. And when the discussion of real estate and where the trends go, public mass perception cannot be over-looked.