Biden administration weighs extraordinary action to make your mortgage cheaper




  • In Business
  • 2022-07-03 17:54:34Z
  • By Fortune
 

The Biden administration may trim mortgage costs for new and low-income homebuyers in a move to make homebuying more accessible, The Wall Street Journal reports.

Industry officials are asking the Federal Housing Administration to cut premiums it charges for loans they insure by $50 to $70 a month per buyer, though some analysts say the federal agency is unlikely to make such deep cuts, the newspaper reports.

Biden's moves to make homebuying more affordable have so far centered on easing constraints on home supplies, which can drive up costs. The U.S. is about 2 million houses short, Doug Duncan, chief economist at Fannie Mae, told Bloomberg.

Last month the Federal Reserve raised its key interest rate by three-quarters of a point-its largest hike in nearly three decades. Federal Reserve Chair Jerome Powell suggested that another three-quarter point hike was possible at the Fed's next meeting later this month, the Associated Press reported.

Borrowing costs across the U.S. rose sharply after the rate hike, with the average 30-year mortgage rate clearing 6%-the highest level it's been at since before the 2008 financial crisis, and up 3% from the start of the year.

This story was originally featured on Fortune.com

COMMENTS

More Related News

Apple Inches Closer to Erasing 2022 Losses as Inflation Cools
Apple Inches Closer to Erasing 2022 Losses as Inflation Cools

(Bloomberg) -- Apple Inc. is close to erasing its losses for the year as softer-than-expected inflation data fueled a risk-on rally in the stock market...

EXPLAINER: Mixed US inflation signs. Where are prices going?
EXPLAINER: Mixed US inflation signs. Where are prices going?

Consumers struggling with skyrocketing prices for food, gas, autos and rent got a tantalizing hint of relief last month, when prices didn't budge at all from...

US Inflation Runs Cooler Than Forecast, Easing Pressure on Fed
US Inflation Runs Cooler Than Forecast, Easing Pressure on Fed

(Bloomberg) -- US inflation decelerated in July by more than expected, reflecting lower energy prices, which may take some pressure off the Federal Reserve...

Falling prices online and at the pump fuel hopes for inflation-ravaged economy
Falling prices online and at the pump fuel hopes for inflation-ravaged economy

Meanwhile, several data points offer a muddled picture, at best, of where the economy is headed.

U.S. consumer price growth expected to slow due to lower gasoline costs
U.S. consumer price growth expected to slow due to lower gasoline costs
  • US
  • 2022-08-10 05:05:34Z

U.S. consumer prices are expected to have risen at a much slower pace in July due to a sharp drop in the cost of gasoline, delivering the first notable sign ...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business