Home
 
Choose Your City
Change City

Mortgage Rates Today, Jan. 9: Little Change; FHA Reduces Insurance Premiums

Mortgage.jpg

Mortgage rates showed little to no movement onMonday, with 30- and 15-year fixedrates holding steady, and 5/1 ARM rates up a hair,according to a NerdWalletsurvey of mortgage rates published by national lendersthis morning.

Mortgage Rates Today,
Monday, Jan. 9

(Change from 1/6)
30-year fixed: 4.31% APR (NC)
15-year fixed: 3.73% APR (NC)
5/1 ARM: 3.84% APR (+0.01)

FHA reduces annual insurance premiums

Mortgages insuredby the Federal Housing Administration just got a little cheaper. The U.S. Department of Housing and Urban Development announced Monday that the FHA will reduce the annual mortgage insurance premiums on most FHA loans by a quarter of a percent. The reduction will save FHA-insured homeowners who close or have funds disbursed on or after Jan. 27 an estimated $500 this year. About 1 million households are expected to buy or refinance with FHA loansthis year, according to the news release.

“We’ve carefully weighed the risks associated with lower premiums with our historic mission to provide safe and sustainable mortgage financing to responsible homebuyers,” Ed Golding, principal deputy assistant secretary for HUD’s Office of Housing, said in the release. “Homeownership is the way most middle-class Americans build wealth and achieve financial security for themselves and their families. This conservative reduction in our premium rates is an appropriate measure to support them on their path to the American dream.”

The change reflects improving financial conditions for the FHA and also the new environment we’re seeing with rising mortgage rates. The new annual premium is now close to its pre-housing-crisis level, according to the report.

“After four straight years of growth and with sufficient reserves on hand to meet future claims, it’s time for FHA to pass along some modest savings to working families,” said HUDSecretary Julián Castro. “This is a fiscally responsible measure to price our mortgage insurance in a way that protects our insurance fund while preserving the dream of homeownership for credit-qualified borrowers.”

!function(e,t,i,n,r,d){function o(e,i,n,r){t[s].list.push({id:e,title:r,container:i,type:n})}var a="script",s="InfogramEmbeds",c=e.getElementsByTagName(a),l=c[0];if(/^\/{2}/.test(i)&&0===t.location.protocol.indexOf("file")&&(i="http:"+i),!t[s]){t[s]={script:i,list:[]};var m=e.createElement(a);m.async=1,m.src=i,l.parentNode.insertBefore(m,l)}t[s].add=o;var p=c[c.length-1],f=e.createElement("div");p.parentNode.insertBefore(f,p),t[s].add(n,f,r,d)}(document,window,"//e.infogr.am/js/dist/embed-loader-min.js","eef3754e-3c02-4236-a16f-d60557c64c37","interactive","");

Homeowners looking to lower their mortgage rate can shop for refinance lenders here.

NerdWallet daily mortgage rates are an average of the published APR with the lowest points for each loan term offeredby a sampling of major national lenders. Annual percentage rate quotes reflect an interest rate plus points, fees and other expenses, providingthe most accurate view of the costsa borrower might pay.

More from NerdWallet
The pros and cons of home equity lines of credit
Best lenders for FHA loans
Calculate your monthly mortgage payment

Michael Burge is a staff writer at NerdWallet, a personal finance website. Email:mburge@nerdwallet.com.

The article Mortgage Rates Today, Jan. 9: Little Change; FHA Reduces Insurance Premiums originally appeared on NerdWallet.