The House Republicans and Democrats with the approval of the Treasury have tentatively agreed to increase conforming loan limits to $625,000 from the current level of $417,000 as part of their economic stimulous package. The bill must still be approved by the Senate ans the White House before it becomes law. Speculation is that the bill will be signed and could impact loans as soon as February 15, 2008.

If the package goes through it would be a boost for the jumbo loan market and our South Bay-Beach Cities real estate market. The increase would be great for those who need to refinance and for many buying property at $900,000 or less. Loans up to $729,750 would get the same treatment as conforming loans of $417,000 or less now receive.. that is lower rates.

Brian Brady in a post this morning before the news from Washington hit the headlines thinks that rates may be headed higher instead of lower after The FED meets next week. He may be right.. if the markets don't like the FED cuts in the discount rates.. either too much or too little then the Bond market will be dicey.. and mortgage rates will be up for grabs. I know it's crazy but it's the market.

**** Looks as if the deal has been done and we can expect the president to sign as soon as it officially clears the Senate. BE AWARE.... These rates are only good for one year.. so if you need to refinance now is the time to do so... at least that's the story now...