oakcreekrenter
New member
With all of the talk of higher interest rates, I would think it'd be equally important to note that starting October 1, 2011, the jumbo conforming limit is supposed to decrease to "a maximum of $625,500 for a 1-unit property in the continental U.S."
http://www.fanniemae.com/aboutfm/loanlimits.jhtml
I just heard about this recently - did not realize it was going to change anytime soon. The difference in interest rates between jumbo loans and jumbo conforming loans looks to be about 0.5%. I wonder if this factored into TIC's plans at all for 2011 and all of the supply they are planning for.
I suppose the government could always change this if they feel the housing market needs more support.
It's not clear to me how this would impact buyers for 2011 - for all-cash or mostly-cash buyers, it probably doesn't make much difference. For people who want to buy soon, being able to borrow up to $729,000 now with the lower interest rate might get them off the fence. At the same time, the lower limit isn't going to help prices, so some people might expect prices to decrease a little more after Oct 1. Thoughts?
http://www.fanniemae.com/aboutfm/loanlimits.jhtml
I just heard about this recently - did not realize it was going to change anytime soon. The difference in interest rates between jumbo loans and jumbo conforming loans looks to be about 0.5%. I wonder if this factored into TIC's plans at all for 2011 and all of the supply they are planning for.
I suppose the government could always change this if they feel the housing market needs more support.
It's not clear to me how this would impact buyers for 2011 - for all-cash or mostly-cash buyers, it probably doesn't make much difference. For people who want to buy soon, being able to borrow up to $729,000 now with the lower interest rate might get them off the fence. At the same time, the lower limit isn't going to help prices, so some people might expect prices to decrease a little more after Oct 1. Thoughts?
