Maybe it can.
The FHA has reduced its Mortgage Insurance (MI) rate, resulting in a monthly payment reduction of $80 on average, according to Bloomberg Businessweek.
"Buying a home is about more than owning a roof and four walls. It's about investing in savings and building a family and planting roots in a community."
That was the message that President Obama relayed in his January 7 speech on housing and homeownership in Phoenix, AR. His speech announced significant improvements to mortgage loans backed by the Federal Housing Administration.
"We're going to start this week laying out some of the agenda for the next year. And here in Phoenix, I want to talk about helping more families afford their piece of the American dream, and that is owning their own home."
Obama announced that FHA Mortgage insurance premiums would be reduced from 1.35 to .85 percent on both purchase and refinance loans. The upfront mortgage insurance premium (UFMIP) will however, remain at 1.75 percent.
The White House estimates more than 800,000 homeowners stand to save on their monthly mortgage costs from the reduced MI premiums. They also predicted that 250,000 potential buyers will enter into homeownership over the next three years as a result of the changes.
CoreLogic estimates the change will benefit FHA borrowers with an average of $80 per month, or $900 per year, in savings.
The President's measures are designed to address homeownership numbers radiating from the flagging first-time buyer market.
First-time buyer participation limped into 2015 accounting for a meager 33 percent of the overall homes sold, the lowest market share since 1987 and down from 50 percent in 2010.
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