Biden administration wants to drop mortgage rates by $800

(CNN, KYMA/KECY) - The government can't do much about rising mortgage rates, but the Biden administration still wants to make homeownership more affordable.

The federal government is trying to do that by lowering mortgage insurance premiums.

They currently stand at 0.85% and the change will lower them to 0.55%.

That's expected to save an estimated 850,000 home buyers about $800 on financing costs this year.

It applies primarily to low and middle-income buyers because the reduction only impacts loans insured by the federal housing administration.

Those loans are typically more expensive than conventional loans.

They are used mostly by people who can't afford to put a ten percent down payment on a mortgage.