The Office of Federal Housing Oversight, calling the shots for Fannie Mae and Freddie Mac, everybody's favorite couple. The big boys and girls have decided not to raise the conforming loan limit in 2007. From Matt Carter at the Inman Blog:
The conforming loan limit determines the maximum size of loans eligible for repurchase in large numbers by government-sponsored mortgage entities Fannie and Freddie. With the conforming loan limit at $417,000, many California homebuyers won't be able to enjoy the lower costs of a conforming loan, CAR said. Although CAR didn't put it quite this way, the bottom line is that if fewer California homebuyers qualify for conforming loans, that could translate to fewer home sales.And we know what fewer home sales means to realtors. It also means more inventory, and more inventory eventually leads to prices dropping.
· California Realtors to Feds: thanks for nothing [Inman Blog]
· "New" loan limits... opportunities for Californians [California Association of Realtors]