Steve Doyle's Blog » Fannie Mae

Mortgage Limits and Rates Looking Good!

Steve — Fri, 01 Oct 2010 16:21:51 +0000

Congress approved a resolution to extend the higher mortgage amount limits for California and other high cost areas. The existing mortgage amount limits ($729,950 in the highest priced areas) are proposed to be extended through Fiscal Year 2011 (September 2011). The mortgage limits were scheduled to be reduced at the end of 2010. The extended limits will apply to FHA, Fannie Mae and Freddie Mac guaranteed loans.

The resolution has been sent on to President Obama, who is expected to sign the extension legislation.

Freddie Mac announced yesterday that the average 30 year fixed rate loan interest rate dropped to an all-time low. The 4.32% (with an average fee of 80 bps) was the lowest recorded mortgage rate since Freddie Mac began keeping records in 1971.

Mortgage rates usually track the Federal Reserve, Ten Year Treasury Bond rates. As investors have been wary of most other investments, there continues to be an increased demand for the security of Treasury Bonds dropping these rates even lower.

It is expected these new lower rates will increase refinancing activity, and may provide some incentive for increasing home sales.

Higher Conforming Loan Limits Extended Thru 2010!

Steve — Mon, 02 Nov 2009 19:07:06 +0000

On October 29th, Congress passed a Resolution to extend the current FHA and GSE conforming home loan limits through 2010, according to a press release issued by the California Association of Realtors. Part of the Housing and Economic Recovery Act of 2008 included temporarily raising the conforming loan limits from $625,500 in high-cost areas to $729,750 and extending the limits through 2009. Last weeks actions effectively extend the higher conforming loan limits for Fannie, Freddie, and FHA loans through 2010, subject to the Presidents approval which is expected this week. Extensions of conforming loan limits for VA loans are also being debated, but will require a separate action through the Veterans Administration.

FHA Follows Fannie Mae and Freddie Mac!

Steve — Fri, 27 Feb 2009 17:09:09 +0000

The Federal Housing Administration (FHA) followed Fannie Mae and Freddie Mac and announced they would match loan limits across the United States. That means in San Diego County, the FHA loan limit for a single home purchase is $697,500 and in Riverside County the FHA limit is $500,000.

“February 24, 2009

MORTGAGEE LETTER 2009-07

TO: ALL APPROVED MORTGAGEES

SUBJECT: Loan Limit Increases for FHA

This Mortgagee Letter provides information on Federal Housing Administration (FHA) single family loan limits that have changed as a result of the American Recovery and Reinvestment Act of 2009 (ARRA) signed into law on February 17, 2009. These limits are effective for those loans for which credit is approved in calendar year (CY) 2009 and will remain in effect until December 31, 2009. “