Earlier this year President Obama visited Arizona with a plan that will help more people the ability to afford homes by reducing mortgage insurance premiums. His plan is to cut the premiums in half for most first-time home buyers along with other existing home owners making owning a home more affordable for hundreds to thousands of people. The current premium sit at 1.35%.

This plan will will save the average buyer $900 a year on FHA mortgages. Mike Orr a real estate analyst with the W.P. Carey School of Business at ASU said that the market is slowly improving, and that this reduction of premiums is step in the right direction. With the rate reduction Obama went on to advise against buying something that is out of your price range, since these rates are for responsible buyers.