The mortgage market is likely in for another big shift at the end of November. That’s when an increase (estimated 12% or 13%) in the conforming loan limit may be announced. If so, it will bring the ceiling to well over $1 million in places where houses are super expensive. The loan limit is a key benchmark for both borrowers and lenders. It is the maximum dollar amount on mortgages that can be acquired by government-sponsored enterprises Fannie Mae and Freddie Mac. Anything under the limit that is sold by primary lenders to Fannie Mae and Freddie Mac must comply with Fannie’s and Freddie’s rules (thus the term “conforming”), while anything above the ceiling is considered a jumbo loan. It’s important to understand that distinction because loans touched by Fannie and Freddie are sometimes priced more cheaply than other loans, and may require lower down-payments. The conforming loan limit is adjusted annually by the government. The 2022 limit is $647,200 in most places, up from the 2021 limit of $548,250, with some regional variations. Any changes announced in November will go into effect at the beginning of 2023.
Higher mortgage rates and concerns about inflation have slowed house price increases lately. But at least until the middle of the year, houses were still selling fast and furious and for top dollar. Some home buyers are still planning to buy a home in the next six months, according to a new survey. Nearly half of would-be home buyers polled say they’re planning to go ahead and purchase a home in the next six months. That’s higher than the share of buyers who planned to buy in July 2019. Some buyers are finding a silver lining in the form of cooling competition. In addition, inventory levels are rising and more housing options are becoming available in smaller, more rural markets, meaning this fall could bring relatively better chances to find a home within budget.
As usual the housing market is changing. We don’t yet know what the spring market may look like. But for right now, the chances of finding a home are looking a little brighter for home buyers.
An experienced attorney can insure you’re buying what you think you’re buying and protect you against unexpected and unwelcome costs and expenses at closing and afterward. My expertise can help you achieve the best results for you and your family. For more information, please contact me at: 203-544-9945 or beth@eedwardslaw.com.
