New Conforming Loan Amounts Announced
Every year, the Federal Housing Financing Agency (FHFA) determines and announces what the “conforming” loan limits will be for each county. The loan limits generally follow the average cost of living trends, so it’s no surprise that the new loan limits for 2019 will be higher than they currently are (see below for county-specific numbers).
“Cool, but what does this mean for me?” Well, I’m glad you asked. Any mortgage loan amount that falls at or under the county maximum loan limit will be able to be underwritten to a federally-standardized set of guidelines, published by Fannie Mae and Freddie Mac. These conforming loans are generally much easier to qualify for than “jumbo” loans (loan amounts above the county conforming loan limit), specifically when it comes to maximum debt-to-income ratios, employment history, and reserve requirements.
What’s Up With Rates?
As you probably know by now, mortgage interest rates have been on a steady rise since November 2016 and we should continue to see them rise, gradually, through 2019. Why? The Fed has been consistently raising their rates (three rate hikes this year, so far, with one more all-but-guaranteed hike in December) in response to a strong economy and low inflation figures. The Fed rates have been a hot topic as of late due to President Trump’s outspoken opposition to the Fed hiking rates any further. As of now, the Fed is forecasting three additional hikes in 2019. While mortgage interest rates don’t jump in harmony with the Fed rate hikes, they do tend to follow similar trend lines as one another. All this means to you, the homebuyer, is that you should expect to see mortgage rates continue to rise. If you’re on the fence, it’s time to take the leap!
Today’s Interest Rates*
Conforming 30 Year Fixed: 5.125% Rate / 5.212% APR
Conforming 15 Year Fixed: 4.500% Rate / 4.585% APR
Jumbo 30 Year Fixed: 4.625% Rate / 4.701% APR
Jumbo 7/1 ARM: 4.000% Rate / 4.074% APR
FHA 30 Year Fixed: 5.000% Rate / 5.515% APR
VA 30 Year Fixed: 4.990% Rate / 5.090 % APR
*rates shown are based on 20% down payment, 740+ FICO, are subject to change, and are according to market conditions as of November 27, 2018.
Want to know more?
I would love to chat about this with you some more. I absolutely love what I do and get excited “geeking out” about the mortgage industry! If you’re ready to find out what your purchasing power is and what it could look like to purchase, feel free to give me a call, shoot me a text, or email me any time: