–
Federal Housing Finance Agency (FHFA) Increases Loan Limits for 2022
– The maximum conforming loan limit in high-cost housing markets has been upped to $1,149,825 for one-unit properties and a whooping $2,211,600 for four-unit properties.
–
Reason Behind the Increase
– The surge in Q3 home price appreciation has triggered the increase, with home prices rising, on average, by a sizable 18.05% from Q3 2020 to Q3 2021.
–
Implications for Mortgage Lenders and Borrowers
– Mortgage lenders are expected to bump up their lending portfolios with more large loans catered to high-buck borrowers.
– Meanwhile, upper-middle-class and affluent borrowers can now borrow more against their properties, with new limits potentially spiking home prices further.
Cue drumroll for the conclusion, and perhaps a somber violin for the many first-time buyers who were already struggling to keep their heads above the rising tide of the real estate market.
“Affluent Lifestyles Just Got a Leg Up in the Lending League”
Increasing conforming loan limits is like handing out larger buckets to people in a rainstorm. Sure, the bucket’s bigger now, but it ain’t stopping the rain, folks! The rising tide of home prices gets a boost, while first-time buyers are left fishing for affordability with a tea strainer. In this whirlwind real estate market, the rich are gallantly sailing forth with their larger-than-life buckets, while the everyday folks are paddling along in their dinghies – some even without a paddle! And let’s not even talk about the mortgage lenders who are putting the ‘bank’ in ‘bankroll.’ Like a bunch of kids given free rein in a candy store, they’re drooling at the prospect of bigger loans and plump interest profits. What a time to be alive…for some, at least.
My advice? Get a life jacket, preferential a neon one so they can still see you when you’re barely keeping your head above water, because by the looks of it, there’s a storm coming! And remember, the size of the bucket isn’t what matters, it’s how you use it to stay afloat that counts! So here’s to sailing (or paddling) into 2022 – may your waters be calm and your mortgage rates low.
Original article: https://www.inman.com/2023/11/28/fannie-and-freddie-2024-loan-limits-upped-to-766550-in-most-areas/
