What’s the effect of potential decline in conforming limit from $697,500 to $546,250 in San Diego Market?[/quote]
…Michael S. Barr, a former assistant Treasury secretary, said the federal government’s retrenchment would be painful for many communities. “There’s always going to be a line, and for the person just over it it’s always going to be an arbitrary line,” said Mr. Barr, who teaches at the University of Michigan Law School. “But there is no entitlement to living in a home that costs $750,000.”…
I agree with this. A FNMA/FDMC conforming limit should NOT be routinely funding luxury properties. That is not its purpose. Perfectly decent houses for families and everyone else are available in SD County for far less than $546,250. Besides, a maximum conforming loan amount of $546,250 will facilitate a purchase of $682,812 with the standard 20% downpayment. This is more than adequate to fund a mainstream purchase of a moderate to mid-upper-tier property in a very nice area.
