2018 Fannie loan limits
It is the end of the first week of December. It is time to focus on the holidays for many. That focus can put many homebuyers in a holding pattern until the New Year. This year Embrace’s early adoption of the higher 2018 Fannie loan limits might give buyers some incentive to stay in the market through December. We can get homebuyers approved at 2018’s higher loan limits today.
Federal law requires that the baseline conforming loan limit be adjusted each year reflect the change in the average U.S. home price. Home prices rose 1.4% in 3Q 2017 according to the Federal Housing Finance Agency (FHFA). House prices rose 6.5% from the 3Q of 2016 to the 3Q of 2017.
With the expectation of relatively favorable economic conditions and a continued shortage of housing inventory, price increases are expected well into the New Year. According to Andrew Leventis, FHFA’s Deputy Chief Economist, “at some point, declining housing affordability should temper appreciation rates in some of the nation’s fastest appreciating markets…” But that is not likely to happen soon. In some markets we could see asking prices on sought after homes push past these newly released loan limits during the spring buying season. Now is the time to take advantage of the higher limits and Embraces early adoption of the 2018 limits ion our underwriting. Call me to discuss options for your clients to take advantage of these 2018 loan limits this month.
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