Loan Limits To Stay Put in '08

This week we finally heard the news: Conforming loan limits will stay at their current level of $417,000 for single-family mortgages in 2008. The conforming loan limit determines the maximum size of a mortgage that Fannie Mae and Freddie Mac can guarantee or buy. Typically, non-conforming or jumbo loans carry a higher mortgage interest, which increases the monthly payment. We here in California pay special attention to what the conforming limit is: At more than $568,000, the median price of a home in California is more than 2.5 times the U.S. median of $221,000, yet we are not recognized as a high-cost state by the Office of Federal Housing Enterprise Oversight. The other news of the week, California is the least affordable market for homeowners. This according to the latest housing opportunity index prepared by the California Building Industry Association. Overall, not cheery news for a Friday. I'll try to do better on Monday. Have a great weekend!