Front_Porch
November 30th, 2006, 11:55 PM
The Fannie Mae conforming loan limits* were announced earlier this week.
I didn't see it picked up in NY -- though I chatted with a couple of journo friends so hopefully that will change.
This was the first time in 12 years the limits haven't risen.
What does this mean? I'm no economist but I think
1) that it's a sign that housing prices nationwide are losing momentum
2) that it's a sign that the government is trying to prop up prices nationwide, since the underlying data should have called for a reduction in loan limits, which the government very pointedly avoided.
Like many NYC real estate people I feel like we're a market unto ourselves, but it's still good to know what's going on nationwide.
ali r.
{downtown broker}
*the level at which the government offers support to the smaller-mortgage market; now set at around $400K for a one-family home.
I didn't see it picked up in NY -- though I chatted with a couple of journo friends so hopefully that will change.
This was the first time in 12 years the limits haven't risen.
What does this mean? I'm no economist but I think
1) that it's a sign that housing prices nationwide are losing momentum
2) that it's a sign that the government is trying to prop up prices nationwide, since the underlying data should have called for a reduction in loan limits, which the government very pointedly avoided.
Like many NYC real estate people I feel like we're a market unto ourselves, but it's still good to know what's going on nationwide.
ali r.
{downtown broker}
*the level at which the government offers support to the smaller-mortgage market; now set at around $400K for a one-family home.