The Prez

President Bush signed the stimulus package we had been hoping for.  The uproar in the Senate subsided and the package cleared with the housing piece included.  

So what does it mean?
Freddie Mac and Fannie Mae are now allowed to increase the conforming loan limits from $417,000 to a maximum of $729,750.  The significance is that Fannie and Freddie’s conforming loans offer lower interest rates and are backed by government-sponsored companies. 

What’s the dif?
There are two types of loans: conforming and jumbo.  Currently conforming is a loan under $417,000; jumbo is anything over.  Jumbo loans are typically 1% point more in interest rate than conforming.  In an expensive area like San Mateo County, it makes it more difficult for buyers to buy.

Time’s a-changing
We’re currently waiting for the new guidelines to be made available.  They could come out as soon as next week.  Once that happens, I expect that we’ll see a rapid change in the local market. 

This increase in the conforming loan maximum may only be valid until December 31, 2008, depending on the overall effect of the change.

Vicki Moore About Vicki Moore

RE/MAX Star Properties
282 Redwood Shores Parkway
Redwood Shores, CA 94065

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