HARConnect

Mortgage Limits May Increase

  • With home prices climbing back to pre-recession peaks in many U.S. markets, baseline jumbo thresholds may be raised for the first time in a decade.
  • The agency that sets these limits, the Federal Housing Finance Agency (FHFA), in May requested public input on its house price index.
  • This index includes sale-price information on government-backed mortgages as well as real-estate sales compiled by research firm CoreLogic from hundreds of U.S. counties.
  • Distressed sales are included but not appraisal values from refinances.
  • The deadline for input is July 27, and the FHFA will decide this fall whether to change the baseline limit starting January 1.
  • In the early 1970s, the baseline limit for conventional loans was just $33,000. That was the maximum amount a homeowner could borrow to qualify for a “conforming” mortgage—one financed by Fannie Mae or Freddie Mac. The $33,000 limit rose steadily over the years to keep up with home prices.
  • Click here to provide your input: http://1.usa.gov/1VlNdV9.
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HAR Communications Dept.

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