Most economic news is focused on unemployment statistics, or on the Bush era tax cuts and whether they will be extended, modified, or allowed to expire. But those of us who watch the housing market were also concerned with so-called 'Jumbo' loan limits that were also about to expire. With sales already slowing down, our local
real estate market would have been heavily impacted if the maximum size of government backed loans were allowed to revert back to about $625,000 from the current limit of nearly $730,000.
Keeping the current conforming rates through the end of 2011 will allow more than 60,000 borrowers to qualify...most of them in expensive areas such as ours. Buyers who do manage to secure these loans will pay a slight premium in interest, currently about .8 percentage points, but buyers and sellers need all the help that they can get, and we are happy to see this bill pass.
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