Economic Stimulus- Higher Loan Amount
The stimulus package also includes a raise of the conforming loan limit to that of last year. The higher loan limit will permit more home buyers and homeowners to access lower interest rate loan as Fannie and Freddie will now be able to buy those loan. Jumbo loans (loans in the amount of $500K and up) yield very high interest rates. More people getting the ability to refinance at a lower rate and more people able to lock-in lower interest rate loans for home buying is great news for those in the higher-end of the market.
The high-end market had been stalled and some relief (at least up to the new higher loan limit) is now underway. The higher loan limit is likely to raise home sales on the high-end by 150,000 qualified home buyers in 2009.
*info provide by NAR