Danny Salas

Archive for November 19th, 2009

Freddie Mac Announcement Regarding Loan Limits for 2010

Fannie Mae & Freddie Mac Loan Limits Extended to 2010

Freddie Mac Maximum Loan Limits Are Unchanged for 2010

On November 12, Freddie Mac announced that our base conforming loan limits will be maintained at their current 2009 levels for 2010, with the maximum loan limit for a 1-unit single-family property remaining at $417,000. The temporary high-cost loan limits for properties located in designated high-cost areas will remain unchanged for 2010 as well.

- High-Cost Loan Limits

As a reminder, the loan limits in designated high-cost areas are the higher of the temporary limits established by the Economic Stimulus Act of 2008 (maximum of $729,750 for 1-unit single-family properties) and the permanent limits established by the Housing and Economic Recovery Act of 2008 (maximum of $625,500 for 1-unit single-family properties).

Actual loan limits for a specific high-cost area may be lower than the maximum permitted loan limit. It is important that you review the 2010 loan limits permitted for a specific county, which the Federal Housing Finance Agency (FHFA) determines and makes available on its Web site <http://www.fhfa.gov/Default.aspx?Page=185>.

- Super Conforming Mortgages

The recently enacted extension of the high-cost loan limits through year-end 2010 applies to all super conforming mortgages with note dates on or after October 1, 2008, and on or before December 31, 2010. There are no changes to our super conforming mortgage requirements as a result of the extension.

- Operational Impacts

Because the 2010 loan limits are unchanged from 2009, there are no impacts to Loan Prospector or the selling system.

The Single-Family Seller/Servicer Guide (Guide) <http://www.freddiemac.com/sell/guide/> will be updated in an upcoming Guide Bulletin to reflect the extension of our current loan limits through 2010, as well as the eligible note dates for super conforming mortgages.

For More Information

- Review the 2010 base conforming loan limits <http://www.freddiemac.com/sell/selbultn/limit.htm> and the higher loan limits in designated high-cost areas <http://www.freddiemac.com/sell/selbultn/limit.htm> as permitted under ARRA.

- View the 2010 loan limits <http://www.fhfa.gov/Default.aspx?Page=185> in designated high-cost areas as published by FHFA.

- Learn more about our super conforming mortgage requirements <http://www.freddiemac.com/singlefamily/mortgages/super_conforming.html>.

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Chico, CA Interest Rates Market Report – Economic Influences – November 19, 2009

Close To All-Time Low's, But HEAVY Resistence Overhead...

Buyer’s WAKE UP!

Last week the borrowing costs on 30-year fixed rate mortgages, excluding fees, averaged, down 0.07% from the previous week and the lowest since mid-May. Mortgage interest rates are hovering within shouting distance of the all-time record low, set during the week ended March 27th — yet according to data provided by the Mortgage Bankers of America — the demand for home purchases dropped to a 12-year low last week!  Follow interest rates on my blog-site at www.accessloans.net .  Half-way down, on the left hand side you’ll see the national average of interest rates.

Jobless Claims

This morning’s Initial Jobless Claims came in at 505,000.  The media will think this is good news because that number has been dropping for weeks, however, let’s look at the bigger picture.  Continuing Claims numbers have dropped; from 6.82 Million to 5.81 Million.  However, why do you think that is?  You think people are being hired?  Or do you think that people have had to have Unemployment Claims for so long, that they are running out of benefits?  I think it’s the latter...as Obama had to sign a 20 week extension to benefits as Unemployment hit 10.2%.

Higher Rates…Period!

The Fed will announce the size of the Treasury Auctions scheduled for next week.  Keep in mind that the Fed’s $1.25 Trillion Mortgage-Backed Security Purchase Program is winding down.  Yet, applications, in the past few months, have been pretty high as rates have hovered around 5.0%.  So the supply of these loans will hit the market at a time when demand, or buying power of the Fed, will be going away.  You know the answer to that equation.  Higher Rates…period!

Stocks Taking A Hit

I’ve been mentioning that the Stock Market has been overbought, for some time now.  Well, it’s taking a hit today.  That’s helping bonds, momentarily, however, we should bounce right off the highs of 2009.  So, again, it’s an excellent time to lock!

Related Must Reads

Read, “Interesting Side Note On Unemployment”
Another Reason For Higher Rates
Stocks Overbought…A Look Into September 1, 2009

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