Mortgage Limits May Increase

Julie C. Nichols General

Reblogged from The Wall Street Journal – Anya Martin

With home prices still climbing, baseline jumbo-mortgage thresholds may be raised for the first time in a decade

Jumbo mortgages for single-family residences exceed $417,000 in most parts of the country and $625,500 in high-price markets. But with home prices climbing back to prerecession peaks in some markets, baseline jumbo thresholds may be raised for the first time in a decade.

The agency that sets these limits, the Federal Housing Finance Agency (FHFA), in May requested public input on its house price index. This index includes sale-price information on government-backed mortgages as well as real-estate sales compiled by research firm CoreLogic from hundreds of U.S. counties. Distressed sales are included but not appraisal values from refinances.

The deadline for input is July 27, and the FHFA will decide this fall whether to change the baseline limit starting Jan. 1.

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