The latest big news is that conforming loan limits will increase.
A question that I often get is, “What’s happening with interest rates?” I know that things are tough right now. Lenders are coming up with products to help cushion the strain of high rates. One example is adjustable-rate mortgages that start at a reduced rate for a number of years and then go to an adjustable rate. Those are good products to think about because interest rates won’t stay high forever. They’ll come down at some point, and it’s great to get a bargain ahead of time.
I recently saw the news that there will be some conforming loans offered up to $1 million. A conforming loan is insured by the U.S. government. They’ve been hanging around $400,000 to $600,000, but are adjusted based on the average sales price of homes in any particular area, so they reflect where the market is.
In that news article, they showed a map with different conforming loan amounts. The closest $1 million area to us is Jackson Hole, Wyoming. The conforming loan baseline limit will be increased in Montana on January 1. You’ll be able to borrow up to $726,000 and have it government-insured. The rates will also be lower than if you do a jumbo loan above that limit.
That’s the good news in our market lately. If you have any questions, don’t hesitate to reach out to me by phone or email. I’d be happy to help you with your real estate needs.