This just in: Conforming loan limit approved by Senate (up to $729,750)

Senate approves $151 Billion Economic Stimulus Bill [Bloomberg.com from Marc Herrenbruck and Kelly McCray]

Fannie Mae and Freddie Mac, the government-sponsored mortgage finance companies, will be allowed to buy loans worth as much as $729,750 for loans made between July 31, 2007 and Dec. 31, 2008, an increase over the current $417,000 loan limit, a move that could help struggling homeowners to refinance large mortgages at a lower interest rate. It will also allow the Federal Housing Administration to insure loans as high as $729,750 in expensive markets.

Express checkout at cash register 1 is full, please proceed to register 2. Knowing “W”, he’ll forget to bring a pen.

Wonder if we had anything to do with it? Guess we’ll never know.

10 thoughts on “This just in: Conforming loan limit approved by Senate (up to $729,750)”

  1. i’m pretty sure theFrontSteps had something to do with it. i’m pretty sure washington is reading, listening and acting. job well done editor, job well done. so, while you’re at it, will you bring some more good inventory on the market…

    [Editor’s note: If you give us all some milk to go with those cookies in your avatar! Actually do have a couple other pocket listings to post up, which Coach A will love. That’s some more inventory.]

  2. This is great news, congrats all! Going to be interesting….. as people may just hold off till July 31st to buy, meaning 1H08 activity will be lower than usual.

    what are your thoughts guys?

    RSC

  3. How much more quickly will the FMs require a massive Federal bail-out as a result? They are already dangerously close to their asset limits and nation-wide housing price drops are threatening their economic stability. This will only exacerbate the situation.

    Just what our local real estate industry and rich need: subsidy from the lower and middle classes of the rest of the country.

  4. you are presuming the increased loan limit and the bailout of the lying sub prime mortgage fiasco are related. if they are, i’d agree with you. why subsidize someone that was dishonest about ever being able to afford to live in a house. i presume, however, that they are mutually exclusive and this is recognition that the current rates for jumbo’s does not good for those of us honest and hard working home owners in regional markets with an average sales price of 700k or higher.

  5. If you figure a 729 cap for conforming, with 20 percent down, buyers will be looking at a ~912K cap. There are currently 61 active SFRs with at least one car parking in areas 1,2, and 5-9 for under ~912K. If you remove all the Sunset listings save the Inner Sunset, the inventory goes down to 24. This could be very interesting.

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