SF Peninsula Real Estate Guru

Matt Carter of Inman News reports that both houses of Congress have passed an economic stimulus package which includes raising the conforming loan limit substantially. It is believed the new limit in California will be $729,750.

I think we will need a few weeks to let the “dust settle” before it becomes clear exactly how the Fannie Mae, Freddie Mac and the actual real estate lenders will handle this increase in the conforming loan limit.

It is clear that this increase will lower interest rates on mortgages up to the new limit which will benefit both home buyers and existing home owners who wish to refinance to obtain a lower interest rate or perhaps to get out of a loan that will adjust upward.

Bottom line this is good news for both buyers and sellers.