Loading ...Mortgage & Conforming Loan Limit Update
February 23rd, 2008 by Todd | 946 views |
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Yet another up and down week for us, yet I still strongly believe that rates will fall back well into the 5’s in the near future. The issue that has been plaguing us for a few weeks is that US debt just isn’t popular right now, and thus, there has been billions of dollars “jumping ship,” which is driving rates up. Rates will rise until they get to the point that they’re once again a ‘good deal’ (I believe that we’re at that point) at which time buyers will come back into the market…that will draw rates back down. It’s quite possible that the spring market will coincide nicely with rates falling. As always, time will tell.
We’ve gotten some news from Fannie Mae in regards to the ‘new conforming loan limits.’ Apparently it has been determined that the real estate in Northern Virginia and Washington DC area’s median home price is $474,000 (more than expected), if we add 25% to that, we have a new conforming loan size of $592,500. That’s the good news, the not-so good news is that instead of just raising the max conforming loan amount, they are simply creating a second tier for loan sizes between the current $417,000, and the new $592,500. This second tier will have slightly higher rates than current conforming rates, but will apparently be lower than current jumbo mortgages. We haven’t gotten any new news on the latest FHA loan limits, but I think that once again FHA will prove to also be a great option for borrowers lacking a substantial down payment.
Todd Murdock | Senior Mortgage Advisor | HomeFirst Mortgage Corp | 703.549.3400
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This entry was posted on Saturday, February 23rd, 2008 at 11:27 pm and is filed under FHA Loans, Home Mortgages, Interest Rates, Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
February 28th, 2008 at 5:36 pm
It would surprise me if rates all of a sudden reversed course and headed back into the low 5’s. With the fed almost certain to drop the rate again more money will most likely come out of the bond market and increase long term rates. At best they will stay where they are for the time being.