FHA Loan Limits to increase, Mortgage Rates Look to go up

As you know there have been lots of news about our economy with the change in the presidency. Housing plays a huge role in the economy such as FHA Loan Limits and higher mortgage rates. We are likely to see lots of changes in 2017. There may be a lot of changes that can indirectly effect housing, this blog outlines just a few things we see in the present news that will impact us in the very near future.

Interest Rates:
Bonds continue to see yields increase. Rising bond yields contribute to higher mortgage rates. If you are considering buying or refinancing, you should strongly consider doing it sooner than later.

FHA LOAN LIMITS to Increase:
The National FHA loan limits maximums will rise to $275,665 in 2017. This is not a huge surprise due to the median home price increase. See more information on the HUD website, here.

Fannie and Freddie have increased the maximum conforming loan limits to $424,100 in 2017. This is the first increase since 2006, which is a great sign.

Additionally we are hearing from our friends in the lending business that there are some upcoming loan programs that will be favorable for those unable to get loans at this time. Lenders loosing the requirements just a bit will be great for housing.

If you’d like to discuss your options, please contact us, we’d be happy to assist.