Fed Raises Conforming Rate Limits

The following was taken fromm CNNMoney.com

Fannie, Freddie loan limits raised
March 06, 2008: 04:54 PM EST
Mar. 6, 2008 (Thomson Financial delivered by Newstex) --
WASHINGTON (AP) - The government on Thursday raised the limits for loans that can be purchased by mortgage companies Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) in more than 220 U.S. cities and counties.As result of the economic stimulus package signed by President Bush last month, the limits were temporarily raised to a new maximum of $729,750 for the continental U.S.Areas affected range from Flagstaff, Ariz., to Boston to Virginia Beach, Va. and include more than 20 rural areas, according to the Office of Federal Housing Enterprise Oversight, which regulates Fannie Mae and Freddie Mac.The stimulus bill raised the cap on mortgages that the government-sponsored mortgage companies Fannie Mae and Freddie Mac can buy or guarantee from the current level of $417,000. Higher limits apply in Alaska, Hawaii, the Virgin Islands and Guam.The change, designed to provide a lift to the strapped mortgage market, expires Dec. 31 unless Congress decides to make it permanent.Similarly, the Department of Housing and Urban Development made a similar change for loans backed by the Federal Housing Administration, where limits were raised to as high as $729,750 in expensive areas. The government said nearly 250,000 additional borrowers now will be able to buy homes or refinance into more affordable home loans and 75 cities and counties will be eligible for the highest limit.----Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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