The maximum 2006 conforming loan limit for single-family mortgages purchased by Freddie Mac and Fannie Mac increased by nearly 16 percent effective Jan. 1, announced OFHEO.
The single-family limit, after customary rounding down to the nearest $50, can be no higher than $417,000 for one-unit properties in 2006, up from 2005's limit of $359,650, said OFHEO.
The charters of the two government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, permit an annual adjustment to the maximum size of mortgage loans the GSEs may purchase. The maximum adjustment is based on the change in the national single-family loan price as determined by the Federal Housing Finance Board (FHFB) from its Monthly Interest Rate Survey (MIRS).
FHFB announced the national average one-family house purchase price in October 2005 was $306,759, up from $264,540 in October 2004.
Based on FHFB's house-price announcement...