With home prices continuing to rise record-breakingly, the Federal Services Agency announced this week that Fannie Mae and Freddie Mac will have the highest mortgage lending limits ever available for purchase in 2022.
In most parts of the United States, the difference between a conforming loan and a jumbo mortgage is $ 647,200. This is an 18% increase from this year’s cap of $ 548,250.
In the expensive housing market, which includes most of California, all of New York City, the District of Columbia, Alaska and the entire state of Hawaii, the new cap has increased from $ 822,375 in 2021 to $ 970,800.
And some markets are in the middle. In Boulder County, Colorado, the new limit for conforming loans is $ 747,500. In Monroe County, Florida, the home of the key, the limit is $ 710,700. In the Nashville Metro area, it’s $ 694,600.
The Federal Services Agency, which oversees Fannie Mae and Freddie Mac, said the rise was based on the third-quarter home price index. The housing market has been in dire straits since the coronavirus recession began this spring — tight inventories, strong buyer demand, and mortgage rates falling to record lows.
Authorities announced Tuesday that US home prices rose 18.5% from the third quarter of 2020 to the third quarter of 2021. Idaho led with a 35.8% price increase, followed by a 30.3% surge in Utah.
With the increase in loan limits, more borrowers will be eligible for loans backed by Fannie Mae and Freddie May. The jumbo loan market is smaller than the conforming loan market, so jumbo borrowers may need to shop a little more to find a mortgage.
“Existing loan restrictions have historically been low for people in certain parts of the country as prices have risen and both future and existing mortgage owners have more room to spare. It has become difficult to take advantage of interest rates, “said a nationwide mortgage banker in Melville, NY.
The housing market has been in dire straits since the coronavirus recession began last spring. Inventories are tight, buyer demand is strong, and mortgage rates have fallen to record lows.
FHFA-compliant lending limits rise 18%, a record high, as home prices soar
Source link FHFA-compliant lending limits rise 18%, a record high, as home prices soar