I guess sometimes wishes do come true. In my last post I mentioned the increased FHA fees will not have much affect upon the purchase market but will affect the refinance market. About an hour after my post, I received notice that there are talks that FHA is looking to drastically reduce the insurance premiums on FHA to FHA refinance loans for mortgages originated prior to April 2009.

I figure that the idea behind this is that if 1,000,000 borrowers can save $100 per month that is $100,000,000 more per month that homeowners can spend on tv’s and video games.