Residential

Fannie, Freddie loan limits get a bump thanks to rising home prices

Conforming loan limits for mortgages bought by Fannie Mae and Freddie Mac will increase for the second consecutive year in response to the rapid rise in home prices, the Federal Housing Finance Agency said.

The baseline limit for one-unit properties will increase 6.8% to $453,100 in 2018, from $424,100 in 2017. The amount of the increase is set by the Housing and Economic Recovery Act of 2008, which requires that conforming loan limits be adjusted annually to reflect changes in U.S. home prices. The FHFA’s house price index increased 6.8% from the third quarters of 2016 to 2017.

Read Article at NationalMortgageNews.com

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