Conforming limit to $700,000?

[Sandi Egan]

So if San Diego’s median price drops, does that mean the max conforming loan will drop too? I can hear the real estate agents now, “Better buy now before prices drop, and you can’t get a conforming loan!”

XBoxBoy
That’s too funny! I can see it actually happening.

If the conforming limit goes up to 550K instead of 730K and then follows the median down, it actually might be a good thing. Right now there is no incentive to 700K+ sellers to lower asking prices, but with the new limits lowering the price a bit and reaching conforming territory they could substantially extend the number of prospective buyers.
Lower comps will lead to lower median, which will lead to lower conforming limit, which will pull the already lowered prices further down.
*sigh*
Probably I’ve got something wrong.

[patientlywaiting]

Quite frankly this is just another case of the rich getting richer. Who will it help?

I quite agree with this but it's the price to pay to help out the banks which is what all the gov't intervention is designed to do.  The middle class stimulus is all talk.  The gov't is trying to do what is in our national interest — save our financial system.

Realistically, this is only going to help the people are barely affording their houses stay in houses.  

But for the plentiful people who were novice "investors" in real estate and were counting on appreciation, the gov't action will be little consolation.  They are already way underwater and nothing can save them.   If someone is already $100,000 underwater and lost all his equity, reducing the cost of borrowing 2% won't do him any good.   Those people will end up in foreclosure no matter what. 

 

 

 

[patientlywaiting]

Quite frankly this is just another case of the rich getting richer. Who will it help?

I quite agree with this but it's the price to pay to help out the banks which is what all the gov't intervention is designed to do.  The middle class stimulus is all talk.  The gov't is trying to do what is in our national interest — save our financial system.

Realistically, this is only going to help the people are barely affording their houses stay in houses.  

But for the plentiful people who were novice "investors" in real estate and were counting on appreciation, the gov't action will be little consolation.  They are already way underwater and nothing can save them.   If someone is already $100,000 underwater and lost all his equity, reducing the cost of borrowing 2% won't do him any good.   Those people will end up in foreclosure no matter what. 

 

 

 

[patientlywaiting]

Quite frankly this is just another case of the rich getting richer. Who will it help?

I quite agree with this but it's the price to pay to help out the banks which is what all the gov't intervention is designed to do.  The middle class stimulus is all talk.  The gov't is trying to do what is in our national interest — save our financial system.

Realistically, this is only going to help the people are barely affording their houses stay in houses.  

But for the plentiful people who were novice "investors" in real estate and were counting on appreciation, the gov't action will be little consolation.  They are already way underwater and nothing can save them.   If someone is already $100,000 underwater and lost all his equity, reducing the cost of borrowing 2% won't do him any good.   Those people will end up in foreclosure no matter what. 

 

 

 

[patientlywaiting]

Quite frankly this is just another case of the rich getting richer. Who will it help?

I quite agree with this but it's the price to pay to help out the banks which is what all the gov't intervention is designed to do.  The middle class stimulus is all talk.  The gov't is trying to do what is in our national interest — save our financial system.

Realistically, this is only going to help the people are barely affording their houses stay in houses.  

But for the plentiful people who were novice "investors" in real estate and were counting on appreciation, the gov't action will be little consolation.  They are already way underwater and nothing can save them.   If someone is already $100,000 underwater and lost all his equity, reducing the cost of borrowing 2% won't do him any good.   Those people will end up in foreclosure no matter what. 

 

 

 

[patientlywaiting]

Quite frankly this is just another case of the rich getting richer. Who will it help?

I quite agree with this but it's the price to pay to help out the banks which is what all the gov't intervention is designed to do.  The middle class stimulus is all talk.  The gov't is trying to do what is in our national interest — save our financial system.

Realistically, this is only going to help the people are barely affording their houses stay in houses.  

But for the plentiful people who were novice "investors" in real estate and were counting on appreciation, the gov't action will be little consolation.  They are already way underwater and nothing can save them.   If someone is already $100,000 underwater and lost all his equity, reducing the cost of borrowing 2% won't do him any good.   Those people will end up in foreclosure no matter what. 

 

 

 

[SD Realtor]

Unfortunately Sandi Egan you have it upside down. I cannot think of a single case in history where more aggressive lending rates incentivizes any sellers to lower asking prices. If anything this incentivizes people who were pricing near the conforming 417k limit to ask for more.

I think more and more that a common misconception on Piggington is that people here project their prevailing thought processes on joe buyer out there in the world. The fact is that most posters here are more introspective then the average buyer. While the savy buyer measures value of a home with regards to market conditions, pricing, etc… many a buyer, dare I say a majority simply look at the mortgage payment. This is especially true in the 750k range of housing.

sdrealtor pegged it right non. This measure will simply help those who have money get more property. To think this will not help the dinc family on the fence about buying that 4S ranch or carmel valley home jump into the fray is wishful. How big of a dent will it make? Not sure but you cannot argue about the fact that it saves a couple hundred a month off a payment.

SD Realtor

[SD Realtor]

Unfortunately Sandi Egan you have it upside down. I cannot think of a single case in history where more aggressive lending rates incentivizes any sellers to lower asking prices. If anything this incentivizes people who were pricing near the conforming 417k limit to ask for more.

I think more and more that a common misconception on Piggington is that people here project their prevailing thought processes on joe buyer out there in the world. The fact is that most posters here are more introspective then the average buyer. While the savy buyer measures value of a home with regards to market conditions, pricing, etc… many a buyer, dare I say a majority simply look at the mortgage payment. This is especially true in the 750k range of housing.

sdrealtor pegged it right non. This measure will simply help those who have money get more property. To think this will not help the dinc family on the fence about buying that 4S ranch or carmel valley home jump into the fray is wishful. How big of a dent will it make? Not sure but you cannot argue about the fact that it saves a couple hundred a month off a payment.

SD Realtor

[SD Realtor]

Unfortunately Sandi Egan you have it upside down. I cannot think of a single case in history where more aggressive lending rates incentivizes any sellers to lower asking prices. If anything this incentivizes people who were pricing near the conforming 417k limit to ask for more.

I think more and more that a common misconception on Piggington is that people here project their prevailing thought processes on joe buyer out there in the world. The fact is that most posters here are more introspective then the average buyer. While the savy buyer measures value of a home with regards to market conditions, pricing, etc… many a buyer, dare I say a majority simply look at the mortgage payment. This is especially true in the 750k range of housing.

sdrealtor pegged it right non. This measure will simply help those who have money get more property. To think this will not help the dinc family on the fence about buying that 4S ranch or carmel valley home jump into the fray is wishful. How big of a dent will it make? Not sure but you cannot argue about the fact that it saves a couple hundred a month off a payment.

SD Realtor

[SD Realtor]

Unfortunately Sandi Egan you have it upside down. I cannot think of a single case in history where more aggressive lending rates incentivizes any sellers to lower asking prices. If anything this incentivizes people who were pricing near the conforming 417k limit to ask for more.

I think more and more that a common misconception on Piggington is that people here project their prevailing thought processes on joe buyer out there in the world. The fact is that most posters here are more introspective then the average buyer. While the savy buyer measures value of a home with regards to market conditions, pricing, etc… many a buyer, dare I say a majority simply look at the mortgage payment. This is especially true in the 750k range of housing.

sdrealtor pegged it right non. This measure will simply help those who have money get more property. To think this will not help the dinc family on the fence about buying that 4S ranch or carmel valley home jump into the fray is wishful. How big of a dent will it make? Not sure but you cannot argue about the fact that it saves a couple hundred a month off a payment.

SD Realtor

[SD Realtor]

Unfortunately Sandi Egan you have it upside down. I cannot think of a single case in history where more aggressive lending rates incentivizes any sellers to lower asking prices. If anything this incentivizes people who were pricing near the conforming 417k limit to ask for more.

I think more and more that a common misconception on Piggington is that people here project their prevailing thought processes on joe buyer out there in the world. The fact is that most posters here are more introspective then the average buyer. While the savy buyer measures value of a home with regards to market conditions, pricing, etc… many a buyer, dare I say a majority simply look at the mortgage payment. This is especially true in the 750k range of housing.

sdrealtor pegged it right non. This measure will simply help those who have money get more property. To think this will not help the dinc family on the fence about buying that 4S ranch or carmel valley home jump into the fray is wishful. How big of a dent will it make? Not sure but you cannot argue about the fact that it saves a couple hundred a month off a payment.

SD Realtor

[Sandi Egan]

I knew it 🙁

[Sandi Egan]

I knew it 🙁

[Sandi Egan]

I knew it 🙁

[Sandi Egan]

I knew it 🙁

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