Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update discusses the higher loan limit reinstatement.
- A reinstatement of higher loan limits was passed by Congress last night and will become law soon.
- Thank you all to those who responded to NAR’s CALL-to-Action to prevent consumers from getting clobbered by the banks.
- A higher limit means fewer consumers will be forced to take out a jumbo-loan, which carries much higher mortgage rates and would hurt the housing market recovery.
- An individual who has worked hard and demonstrated financial responsibility should generally be able to borrow money at lower interest rates. This would not have been the case if loan limits had been lowered.
- If loan limits were lowered, then more consumers – even those with the finest credit history – would have to pay higher interest rates for the benefit of large banks, who have proven historically to be very vulnerable to “too-big-to-fail” taxpayer bailouts.
- Read more here >