The news broke yesterday that the regulatory group that oversees Fannie Mae and Freddie Mac is not going to lower the conforming loan limit after all. Many had suggested that the limit, currently at $417,000, would be reduced to take account for the drop in home values that most real estate markets have seen over the past few years, but they have decided to keep it in place much to the relief of many in the real estate industry. Inman News has a full account of the situation, including some information about how low the limit would have to be reduced in order to stay in line with the corresponding drop in home prices (roughly fifty thousand dollars, or down to $360,000). For high-priced markets the loan limit is still set at $625,500.
So for now the limit is staying the same. Does anyone out there think it will be reduced in the future? Please let us know your thoughts in the comments.