All of my lender contacts are abuzz about what may happen this week if the loans that conform to Fannie Mae and Freddie Mac funding guidelines is raised over $600,000.
Rumors are zooming around like confetti in a tornado.
Some say, "Conforming money will go to $625,000."
Others say, "I hear $700,000 is the number!"
"Just wait and see... conforming will go up to $730,000!!!", say some.
If the conforming money increase is not a limited-time increase, and the decision makers choose to make the change permanent, we could see a MODEST increase in the pace of home sales.
However, if Congress is smart, and positions the loan limit increase as a TEMPORARY increase, with a sunset clause that rolls back the ceiling to a lower loan value at some future date, we could see a SIGNIFICANT increase in home sales.
Why?
The middle of the market in Prince William is stuck in the mud, going nowhere fast.
The low end is still moving as first-time buyers enter the market, and the high end is seeing a steady pace in luxury homes over $1 million.
It's the market in the middle, the move-up market that is stuck.
The $500,000 - $650,000 market is suffering from a lack of affordable financing.
The heart and soul of the move-up market, a home-buyer's first shot at a single-family home with a 2-car garage, has traditionally been funded by Fannie Mae and Freddie Mac conforming home loans.
However, Fannie and Freddie have had their loan ceiling locked under $420,000 because Congress has been wasting time running a wictch hunt on the pair because a few cranky pundits denounced their complex accounting methods, "sloppy" or "fraudulent".
Congress has been laser-focused on raking Fannie and Fred over the coals, and forgot about their REAL job... keeping the conforming market in step with the middle-class home values.
Well, Congress has been kicked in the pants by current events.
"Wake up members of Congress!!"
Fan and Fred MUST be released from the Congressional holding cell, and charges dismissed so that all three, Congress, Fan, and Fred may return to their JOBS.... serving We, The People.
The urgency of NOW is upon us.
First, raise the conforming loan ceiling over $600,000. Just pick a number and get it done now.
Next, make the higher loan limit a LIMITED-TIME OFFER so that home buyers sitting on the fence feel an urgent call to ACT NOW with a double-whammy of low prices AND bargain-priced loan money with friendly terms.
Opportunities Are Everywhere...We Can Help You Find Your Dream Home.
Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252 list your property for sale or to purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany, Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.
Equal Housing Opportunity
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"Hey Erick, I have a question...."
Contact Peggy James or Erick Blackwelder of Erick and Company of Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-851-3085(Peggy)703-590-2252 (Office).
Give us a call and we can "GET YOUR HOME SOLD FAST".
You can hire us to sell your home in Woodbridge, Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Manassas, Gainesville, Garrisonville, and Triangle.
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Equal Housing opportunity.
