Fannie Mae and Freddie Mac recently issued loan underwriting criteria and will start buying loans of up to $729,750 from lenders on May 4, which some industry analysts believe will result in lower rates.
This week, Wells Fargo started offering conforming loans of up to $729,750, and Bank of America will begin offering them by mid-May
Historically, rates on loans higher than $417,000 – often referred to as jumbo conforming loans -- are one-fourth to one-third of a percentage point higher than rates on $417,000 or lower loans.. With Fannie Mae and Freddie Mac agreeing to guarantee loans of up to $729,750, rates on jumbo conforming loans likely will be comparable to the rates offered on loans of $417,000 and lower. It's about time. The impact on our area sales should be considerable. I just hope that our local inventory, which has been going down in recent weeks, will increase in time to give good choices to an influx of new buyers attracted by these new rates.
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