Fannie Mae and Freddie Mac are expected to raise their top mortgage limits for 1998 by more than $10,000 this week.
The mortgage giants are expected to boost their so-called conforming loan limit about 5% more than the current limit of $214,600 for a single- family home, based on previous months' housing reports.
The rise would be triggered by the October housing report, scheduled to be released Wednesday by the Federal Housing Finance Board. The report tracks house prices on a month-to-month and yearly basis.
By statute, the firms can raise the top mortgage limits by the same percentage as house prices increase. In years house prices decline, the firms do not have to lower mortgage limits.