I am constantly in discussions with industry leaders regarding the market. The following came this week in an email from Carla Wilson @ SunTrust Bank.
Yesterday, an economic stimulus package was announced in Washington. One important provision of the package seeks to temporarily raise the conforming (non-jumbo) loan limits that can be financed and guaranteed by government sponsored FNMA (Fannie Mae) and (Freddie Mac) from $ 417,000 to as much as $730,000 in some markets. This could provide a needed boost to housing as lenders have tightened underwriting guidelines and raised rates for their nonconforming jumbo loans. Congress is expected to pass this legislation to increase the limits as early as this February. Until then, the loan limits will remain at $417,000.
Mortgage rates continue to show great volatility after the Fed rate cut, with changes to mortgage rates as great as .375% in a 24-hour period. Still, fixed rate mortgages remain at historic lows. Credit scores, down payment, loan-to-value, and loan purpose will influence rates.
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