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Home Prices Rise, FHFA Compliant Loan Limits Will Increase 18% By 2022

Home prices go up
The increase was based on its House Price Index for the third quarter. Since the coronavirus recession began,

December 10 – Hispanic Solutions Group

As home prices continue their record climb, the Federal Housing Finance Agency said last Tuesday that the loan limits for mortgages that Fannie Mae and Freddie Mac can buy in 2022 will increase by the largest percentage until 2022. Date for much of the United States, the split between conforming loans and giant mortgages will be $ 647,200. That’s an 18 percent increase from this year’s limit of $ 548,250, experts reported.

In expensive real estate markets, which include much of California, all of New York City, the District of Columbia and all of the states of Alaska and Hawaii, the new limit is $ 970,800, compared to $ 822,375 in the current year 2021. reported Several markets are in the middle. In Boulder County, Colorado, the new limit for conforming loans is $ 747,500. In Florida’s Monroe County, home to the Keys, the limit is $ 710,700. In the greater Nashville area, it’s $ 694,600.

The Federal Housing Finance Agency (FHFA), which oversees Fannie Mae and Freddie Mac, said the increase was based on its House Price Index for the third quarter. Since the coronavirus recession began this spring, the housing market has been in uncertainty: Inventories are tight, buyer demand is strong and mortgage rates have fallen to record lows, experts said.

The agency also said Tuesday that U.S. home prices rose 18.5 percent from the third quarter of 2020 to the third quarter of this year 2021, the fastest appreciation on record. Idaho led the way with a 35.8 percent increase in prices, followed by Utah’s 30.3 percent increase.

Increasing loan limits allowed a broader group of borrowers to qualify for loans backed by Fannie and Freddie. Because the jumbo loan market is smaller than the conforming loan market, giant borrowers may need to look a little further to find a mortgage.

Existing loan limits have made it difficult for people in certain parts of the country to take advantage of historically low interest rates, as prices have risen and current and potential homeowners have been able to pay more, Jodi Hall said.

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