December 2017

Written by Robert H. Ruth

Back in July I wrote a blog post in which I described what I believed were the 5 pillars supporting the United States housing market. I stated that just as pillars provide support and reinforcement to a beam or an arch and hold the supported structure in place, my 5 pillars were providing the structural support for the current housing market. These were the 5 Pillars of the Housing Market at that time:

•  Millennial Buyers
• Low Inventory Levels
• Historically Low Mortgage Rates
• Full Employment
• Price Appreciation

Now that we are in the middle of December, I thought it might be interesting to revisit these five pillars and see if they are still intact, weaker or stronger. Here then, is my current

Written by Robert H. Ruth

Last week, I reported that Fannie Mae and Freddie Mac were increasing their conforming agency loan limits in 2018 from $ 424,100 to $ 453,100, an increase of 6.8%. Accordingly, we have received an announcement from the Department of Housing and Urban Development that the Federal Housing Administration (FHA) will also increase their loan limits in 2018. While the new limits are not as high as Fannie Mae and Freddie Mac, they are higher than the limits in both states this year.  

While FHA loan limits do not change dramatically on a year over year basis, the new limits are a reflection of the increase in home prices in the US over the last 12 months. As reported by Kelsey Ramirez in Housing Wire, FHA is required by the

Written by Robert H. Ruth

On Tuesday, November 29th, the Federal Housing Finance Agency (FHFA), who has oversight over Fannie Mae and Freddie Mac, announced that they are increasing the conforming loan limits in 2018.  This is an important development for potential homebuyers who are looking to purchase next year and homeowners seeking to refinance. A borrower seeking a loan at or below this amount will be able to obtain a conventional mortgage, and loans amounts that are higher are known as Jumbo Mortgages.

Agency loans historically have rates that are .25 to .50 percent lower than Jumbo Mortgages.

Typically, agency backed loans comprise the largest share of home mortgages in the United States. The maximum conforming loan limit is determined