01 Dec Housing and Conforming Loan Limits Increase
There is more good news in the housing market after last weeks appreciation reading. Core Logic’s housing index rose from a year over year gain of 6.7% in their November report to 7.3% – a 6 year record. This 7.3% is around 280% higher than Core Logic’s prediction earlier this year.
The FHFA has increased the conforming loan limit on one-unit properties from $510,400 to $548,250 for 2021 – about a 7.5% increase. This will help people on that higher end to get much better loan pricing next year.
After yesterdays all time lows in mortgage pricing, mortgage bonds have fallen 34 bps this morning. With no near floor of support, we are holding a locking bias as we see turbulence in mortgage bonds.