The Federal Housing Finance Agency (FHFA) has just released that their baseline limits for mortgages acquired by Frannie Mae and Freddie Mac will increase in 2018. (Frannie Mae is another name for the Federal National Mortgage Association and Freddie Mac another for the Federal Home Loan Mortgage Corporation. Both were initially formed by the U.S. government to stabilize the residential mortgage market and widen opportunities for homeownership).
The Housing and Economic Recovery Act requires baseline conforming loans to be adjusted each year to reflect the changes in U.S. home price. Since home prices have risen 6.8 percent between 2016 and 2017, the baseline maximum limit will be increased by the same percentage. That means the loan limit for 2018 will be $453,100 as opposed to $424,100 in 2017.
This is good news for those wanting to buy a house including a loan a next year and now is the time to look as the market is improving. This is also good news for sellers since home prices are going up. To view Waterfront Properties listings, click here.