Fannie-Freddie Conforming Loan Limits Increasing for First Time in a Decade

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Even with the worst post-recession wage growth since 1965, national home prices are back to June 2007 levels, thanks in part to the massive monetary stimulus from The Federal Reserve. (Bloomberg) – Joe Light and Prashant Gopal- The definition of a jumbo mortgage is changing for the first time in more than a decade.
Fannie Mae and Freddie Mac in 2017 will back mortgages of up to $424,100 in most of the U. S., an increase from $417,000, the Federal Housing Finance Agency said Wednesday. The change, which will increase the limit for areas with the most expensive homes to $636,150 from $625,500, comes after home prices in the third quarter pushed past their level of a decade ago.

This post was published at Examiner on November 23, 2016.