WASHINGTON – The federal regulator for Fannie Mae and Freddie Mac announced Friday that single family conforming loans limits for the two secondary mortgage giants will remain the same in most markets, $417,000, but will be lower in some high-priced markets where the limits were raised last year.
The changes, effective Jan. 1, will lower the limit in high-priced real estate markets to $625,500 down from $729,950, according to the Federal Housing Finance Agency. The conforming loan limit is the maximum amount of loan Fannie or Freddie will buy.
Loan limits vary by metro area and are based on the local median house price. So falling home values in some markets have pulled the loan limits down with them.
In San Diego County, for example, it will be reduced in January from $697,500 to $546,250. In the Boston area the limit will fall to $465,750 from $523,750. In the Baltimore area, it is scheduled to drop to $494,500 from $560,000.
Some mortgage lobbyists are pushing Congress to keep the conforming loan limit at $729,950 to help the housing market recover from its worst slump in decades.
