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NEWS RELEASE 
For Immediate Release
November 7, 2008

PRICES OF HOMES FINANCED BY CONFORMING
LOANS WILL NOT BE ALLOWED
TO FALL IN 2009

WASHINGTON, DC – The Federal Reserve Board (”FEDRB”) and the US Department of the Treasury (”US TREAS”)  announced today that they (collectively, “ABSURDEST REF”) will not permit the prices of homes financed by conforming loans to fall in 2009. 

Speaking at a joint press conference in Washington, D.C., representatives of the Fed and Treasury observed, somewhat apologetically:

“We don’t know why we didn’t think of this sooner.  It makes everything else so much easier.  Wait till you see what we do with energy prices.”

As in previous years, the 2009 maximum conforming limits are higher in states or regions associated with successful or unsuccessful Presidential and Vice Presidential Candidates (Alaska, Hawaii and Panama).  In those areas, as delineated in the attached list, loan limits vary from $625,500 to $721,050 for one-unit properties.

The conforming loan limit will be $417,000 for 2009 for most areas in the U.S. but specified higher limits in certain cities and counties.  A conforming loan is the largest loan that Fannie Mae and Freddie Mac can purchase in 2009.  

According to provisions of the Housing and Economic Recovery Act of 2008 (HERA), the national loan limit is set based on changes in average home prices over the previous year, but cannot decline from year to year.  Home prices and limits for two, three, and four-unit properties in 2009 will remain at 2008 levels as well.

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I used to work with numbers for a living, but now I keep my head up high and my spirits up as I look for my next job or ‘idea’. Till next time – Ira Artman

FHFA – Conforming Loan Limit Press Release, Washington, DC, 7 Nov 2008.

 
Kate Smith, God Bless America – God Bless America, Rhapsody/RCA Red Seal, 2002.