Weekly Economic Review: FHA Reduces Mortgage Insurance Premium 0.50%

Posted by Laine Smith on 1/10/15 9:23 AM

Topics: Economy

It was a good news week for anyone looking to buy a home. The national average for mortgages dropped another 0.12% (12 basis points), ending at the lowest levels we've seen in a year. The Federal Housing Administration (FHA) announced a 0.50% reduction in mortgage insurance premiums that it charges on new loans. This drop in MIP makes home ownership more affordable for many people, especially first-time buyers. The stock market had another down week, slipping another 0.64%. 

The_SP_500__Increased_2.7_last_week

Last week in the economy:

  • The S&P 500 started the week at 2,058 and dropped 0.64% to end the week at 2,045
  • Mortgage rates (The national average) dropped 0.12% (12 basis points) last week. 
  • The Federal Housing Administration (FHA) announced a 0.50% reduction in mortgage insurance premium that it charges on new loans
  • The unemployment rate fell to 5.6% in December from 5.8% in November
  • Nonfarm payrolls increased 252,000 in December

 

What's on the economic calendar for the week of January 12, 2015:

  • Wednesday: Retail Sales will be released
  • Thursday: Jobless claims and the Producer Price Index (PPI) will be released
  • Friday: The Consumer Price Index (CPI) and Industrial Production will be released

 

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Our trusted source for all economic news is First Trust Portfolios out of Wheaton, IL. For greater insights on these figures check out their blog here.

 

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