"FHFA Director Bill Pulte dismissed that idea in March. Each November, the FHFA announces the new limits for the coming year. Increases resumed in 2016, when home prices returned to pre-recession levels a condition set by the 2008 Housing and Economic Recovery Act (HERA). Importantly, even if home prices fall, the ceiling does not decrease; it only rises when home prices increase year over year."
"This year, Rocket Mortgage was more aggressive. In mid-October, it raised its limit to $825,550 for single-family homes across 48 states about a month after competitors such as United Wholesale Mortgage (UWM), Pennymac and CrossCountry Mortgage implemented smaller increases, each setting their cap at $819,000. From a policy perspective, raising the conforming loan limit helps buyers finance higher-priced, one-unit homes more efficiently at a time when affordability remains strained."
FHFA conforming loan limits are set annually each November and increases resumed in 2016 after home prices returned to pre-recession levels under HERA. The ceiling never decreases when prices fall; it only rises when home prices increase year over year. Mortgage lenders often raise their own conforming caps in advance. Several lenders raised caps in October, with Rocket Mortgage at $825,550 and competitors at $819,000. Raising limits helps buyers finance higher-priced one-unit homes but fuels debate over extending government-backed mortgages to expensive properties. HERA sets a 150% ceiling, making the 2026 one-unit cap $1,249,125. Special limits apply to Alaska, Hawaii, Guam and the U.S. Virgin Islands.
Read at www.housingwire.com
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