The Federal Housing Finance agency announced last week that mortgage giants Fannie Mae and Freddie Mac will increase their lending limits next year as a result of nationwide home-price gains. Currently, the maximum conforming loan limit for single-unit properties is $453,100. This will increase to $484,350 in 2019.
Loan limits are based on median home prices in a given metropolitan area. Higher limits assist buyers by providing access to better financing terms on a new mortgage or refinance. Loans that exceed these limits are generally referred to as jumbo or non-conforming loans.
Housing market like San Diego are typically given significantly higher loan limits to allow for the higher median home price. For 2019, the conforming high balance limit in San Diego will increase from $649,750 to $690,000.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.875 percent, 15-year rates are near 4.25 percent and the 5-year ARM is averaging 4.5 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.