How The New FHA Fees Are Affecting The Home Inspection Industry
Home buyers across the USA are currently facing a situation that seems all too familiar. Do they invest now or risk paying more in the future, or should they hold on and wait for the real estate bubble to burst? As a result, the demand for new homes has shown a few signs of teetering with most buyers claiming that the jumps in both property values and borrowing costs have affected their decision.
Recent market surveys have also termed most houses as unaffordable, and the recently introduced fees by the Trump administration have played a vital role in these rate spikes and will further test the market’s durability. Back when the Trump administration issued a new fee for all Federal Housing Administration (FHA) approved loans, the government claimed that the mortgage insurance program would be very profitable in the fiscal year 2019.
However, there are no indications that the FHA will reduce its mortgage insurance premiums anytime soon, pushing affordable homes further away from the masses of people looking to become homeowners. Apart from the new fee, the Trump administration also introduced a new bill that prevents homeowners from filing a return on property taxes.
When the government projected profitability in fiscal 2019, the obvious beneficiaries would be the bankers and government, as increased interest rates and additional FHA fees can in no way benefit home buyers or related businesses. These benefits have not filtered down to the layperson as buying a home with higher interest rates has kept new buyers away from shopping for new homes.
This new bill has affected not only home buyers but also current homeowners. Aftershocks of these two actions have reverberated through the home inspection industry as well. The home inspection sector revolves around the success and strength of the real estate market. However, with higher interest rates and additional mortgage fees awaiting them most people are afraid of venturing into buying homes. In turn, this has stagnated the home inspection market, and business has taken a plunge.
To learn more about how these new changes are affecting the home inspection sector, reach out to House Pro Home Inspection Inc. As NY State licensed home inspectors, we have the expertise and experience to tackle any chances that come our way. If you have any questions about automated our home inspection services, please contact us by clicking here. To learn more about the services we provide, please click here.