What’s the overlooked real estate story of the month?
The Fannie Mae conforming loan limits* were announced earlier this week, and they didn’t change.
I didn’t see this story picked up in NY — though I chatted with a couple of journo friends so hopefully it will be.
As I posted on wiredny.com, this was the first time in 12 years the limits haven’t risen.
What does this mean? I’m no economist but I think
1) that it’s a sign that housing prices nationwide are losing momentum
2) that it’s a sign that the government is trying to prop up prices nationwide, since the underlying data should have called for a reduction in loan limits, which the government very pointedly avoided.
Like many NYC real estate people I feel like we’re a market unto ourselves, but it’s still good to know what’s going on nationwide.
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*the level at which the government, via Fannie Mae, offers support to the smaller-mortgage market; now set at around $400K for a one-family home. Sorry, Brooklynites, the conforming loan limits didn’t change for multi-family homes either.