Good morning! I was thinking yesterday about the announcement last Friday of the new conforming loan limits for 2009. I think it's great news! In the tri-county area of Seattle, it means that the new limit is $506,000 next year, up from $417,000.
In our area, even though the average home sale was $399,000 lately, that doesn't buy much. A nice family home with room is probably more in the neighborhood of $500-600,000. That's why I think the new conforming loan limits are good. Granted, it's unclear what will happen to jumbo loan limits above this. But I think banks will start to offer reasonable loans above $506,000 as well.
I believe this is all pointing toward a housing recovery sometime next year. I've seen some builders building again, lenders offering more choices on purchases lately, and, with the new conforming loan limits, I'm hopeful the consumer will recognize a great time to buy or refinance. As with anything time will tell. I'm just encouraged by the new loan limit. It's the first piece of good news we've had in a while. Have an awesome day!
Comments(7)