This year is ending on a high note with some very good news for REALTORS® and California home buyers.
Late last month, the Federal Housing Finance Agency (FHFA) announced it will increase the 2017 maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac to $424,100 on one-unit properties in most areas and a cap of $636,150 in high-cost areas. The previous loan limits were $417,000 and $625,500, respectively.
We applaud FHFA Director Mel Watt for raising the existing Fannie Mae and Freddie Mac conforming loan limits, as this will provide stability and certainty to the housing market and give tens of thousands of California home buyers a chance at homeownership. The FHFA recognizes that home prices have recovered not just in California, but also across the nation. Many higher-priced areas of the state will benefit greatly from the higher limit. View the 2017 FHFA loan limits by county.
On a related note, just last week, the Federal Housing Administration (FHA) announced its loan limits for 2017. Because of an increase in housing prices, most areas of the country will see a slight increase in FHA loan limits in 2017. In high-cost areas, the national FHA loan limit “ceiling” will increase to $636,150 beginning Jan. 1, 2017. FHA also raised its minimum “floor” to $275,665, or 65 percent of the national conforming limit of $424,100. View FHA’s loan limits.
Last month, I mentioned that I opened C.A.R.’s Center for California Real Estate Summit: “Housing Affordability and California’s Future,” a day-long event which drew about 100 participants, including economists, state and local officials, academics, and other housing experts to discuss practicable solutions to California’s housing affordability crisis. A complete wrap-up report will be available very soon, but in the meantime, you can view videos of the Summit and all of the discussions that took place now. To learn more about the Summit and CCRE’s initiatives, please visit the CCRE website.
Before I close, I want to tell you how excited I am to serve as your President in 2017. I hope you will join me and get involved with C.A.R. next year. I look forward to working with you!
Have a very safe and joyous holiday and a Happy New Year.
CALIFORNIA ASSOCIATION OF REALTORS®