For most of the country, conforming loan limits will remain unchanged at $417,000. The irony is with price declines across much of the country, this is good news for home buyers.
If you live in a high cost region of the country, loan limits will be 115% of the local median price for single family homes. This should provide a cushion in high cost regions such as California and New York.
The 2009 levels will have limited impact on the housing market, according to Dean Baker, co-director of the Center for Economic and Policy Research.
“If there were higher caps, then more money would go to higher-end homes, but there would be less for more moderate income houses,” Baker wrote in an email. “In short, keeping the limit at $417,000 is likely somewhat of a boost for the bottom half of the market (which badly needs it), while [it] is bad news for the somewhat more upscale segment of the market.” MarketWatch.
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At one point I was hoping conforming loan limits would be raised in Nevada, but with home prices dropping so much in Las Vegas, there no longer is a need.