Points, MIDAs, and Mortgage Subsidies

Pulse Survey - Points, MIDAs, and Mortgage Subsidies

Over the past several years, inflation, rising interest rates, and low housing inventory leading to increased housing prices have caused many organizations to question whether to provide additional financial support to relocating employees in order to offset these additional costs.

Historically speaking, most companies provide financial assistance for home sale and home purchase expenses to most or some of their relocating populations, but very few provide additional financial support to cover costs associated with mortgage discount points (referred to as points), mortgage interest differential allowances (referred to as MIDAs), or housing subsidies, all of which can come in various shapes and forms. Points, MIDAs, and subsidies were some of the most questioned benefits in 2023 while also remaining among the least common and least implemented benefits. Many companies took a wait-and-see approach to reacting to the higher costs faced by relocating purchasers, and the year ended with few taking action.

As we begin 2024, many sources are speculating that interest rate reductions may be on the horizon as the Federal Reserve looks to balance reducing inflation with avoiding/minimizing the possibility of a recession. Because of this speculation, the questions raised in 2023 by those considering change appear to be waning.

The results of this most recent Aires Pulse Survey validate that few companies are covering points and fewer companies are offering MIDAs and subsidies.

Below is a sneak peek of the survey.