The new conforming loan limits for conventional loans sold to Fannie Mae and Freddie Mac were announced this week. The limits increased to $647,200 for 2022! In 2021, the limit was $548,250.
The Federal Housing Finance Agency announced the third quarter changes in it’s Housing Price Index. Between the third quarter of 2020 and 2021, the expanded data index had grown by an average of 18.05%. The changes to the conforming limits reflect the price gains in housing costs over the past year.
Single family limits are $647,200, two unit limits will be $828,700. For those looking at three unit properties, the limit will be $1,001,650 and four unit limits will be $1,244,850.
FHA mortgage limits will be announced later this month. Expect that there will be an increase but we are not sure how much of an increase yet.
Mortgage rates did improve a little this week with the announcement of a new covid variant. Initially there was a slight drop in rates Monday, however Tuesday saw a bit of an increase when the Fed Chairman spoke. He is concerned that the current inflation rate may not be a transition and they may need to increase rates by June 2022. Then there was an announcement that the first new omicron case discovered in the United States. This fueled a flight to safety in the market and the bond market rallied a bit. Due to the market still assessing the risks of the omicron variant and several other non-covid related considerations, expect that there will be some volatility in the bond market.
Leslie Vanderwerf, NMLS ID#335509, Cross Country Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website