The House has flipped and agreed to increase the loan limits for Fannie and Freddie. The increase is to be temporary until the end of the year and got traction because the jumbo loan market continues to be soft with rates for jumbos 50 to 75 basis points higher than conforming limits. As it is being structured, the limits will increase by 125% of the median home price in any SMSA market area to a max of $750,000. It was initially reported that the limit would go to $625K across the board.

FHA also looks to raise its limits to $271k with a max loan amount in high cost areas to $729k. 

 This is great news for 2 huge programs!