A component of the governments proposed enconomic stimulus package announced Thursday would give an immediate lift to buyers and sellers in higher priced housing markets such as California.
The package agreed upon by leaders in both parties in the house would allow government sponsored Fannie Mae and Freddie Mac to buy mortgages 50% more than the existing conforming limit of $417,000. The Senate and the White House must also sign off on the proposal before it becomes effective.
The higher cap of $625,000 would likely breath life into the California market by making very affordable mortgage money available. As of today, the current conforming rates are at 40 year lows. Some individuals with higher "jumbo" or non-conforming loans would be able to refinance to take advantage of these historically low rates. Home buyers would benefit as extremely affordable interest rate scenarios would be freed up by this move.
Steve Keefe, Owner/Broker of Coldwell Banker Sky Ridge Realty and Arrowhead Home Loans said late Thursday "In my nearly 20 years in the business, this is one of the most proactive things, I have seen government do to address real issues. Moving forward with this provision and following it up with a permanent adjustment will benefit consumers and offer meaningful economic benefit."
Buyers and sellers looking to find out more about what his happening in the current mortgage market should contact the professionals at Arrowhead Home Loans, Inc. at 909-336-1793
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