Industry News

Conforming loan limit stays at $417,000

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The conforming loan limit for mortgages purchased by Fannie Mae and Freddie Mac will remain at $417,000 next year, while debate continues over whether it will be lowered in 2009 to reflect falling home prices. The Office of Federal Housing Enterprise Oversight (OFHEO) determines the conforming loan limit according to the average home price as reported each November by the Federal Housing Finance Board (FHFB). OFHEO today followed through on a previous promise to leave the conforming loan limit unchanged in 2008, despite today's announcement by FHFB that the average U.S. house price fell 3.49 percent in 2007, to $295,573. "While the house-price survey data used in determining the conforming loan limit show a decline over the past year, as previously announced and consistent with the proposed new conforming loan limit guidance, the level will remain at $417,000 for the third straight year," OFHEO Director James Lockhart said in a press release. FHFB calculated that prices fell 0.16 perce...