St. Cloud Buyers and Sellers Slated for Home Loan Relief

Dated: November 26 2021

Views: 16

 All across the country, the run of extremely low mortgage interest rates has provided a welcome counterbalance to the steady rise in real estate prices. Last week, cnet.com reported the U.S. average rate offered for standard 30-year fixed mortgages weighed in at five basis points lower than the week before. That 3.14% rate meant that November’s mortgage shoppers were still seeing quotes in the now-familiar “historically low” territory.

But by now, the cumulative effect of those rising home prices was creating its own stumbling block. According to Corelogic, September’s median U.S. prices had increased by 18% in the past 12 months. That meant that more and more properties were selling at prices that now exceeded the limit that Fannie Mae and Freddie Mac use as the top amount that qualifies as a standard “conforming” loan.

In other words, more applicants were now requiring home loans that fall into the “jumbo” category. Jumbos add risk for lenders, making mortgage qualification more difficult. More expensive, too.

The good news is that the Federal Housing Finance Agency—the entity which sets conforming loan limits—will soon announce a significant rise in the conforming maximums. On November 30—a week from Tuesday—the new dollar amounts will be made public. Home loans that currently top out at $548,250 in most parts of the country are expected to jump to a figure closer to $650,000. In more expensive housing markets, the current $822,375 peak will likely rise to just under $1 million.

For St. Cloud home buyers and sellers, that adjustment will immediately make more properties affordable for more buyers. The new maximums will go into effect on January 1, so right now isn’t too soon for next year’s buyers to undertake some serious house hunting. That makes it prime time to give me a call!

 

Providing a superior level of informed, professional real estate services to buyers and sellers throughout Central Minnesota. We have agents specializing in residential, commercial, multifamily, new construction, existing, investment properties, foreclosures/REO, and short sales with offices located in:

Multiple Office Locations To Serve YOU!

Saint Cloud 320-259-4554

Princeton 320-983-3555

Sartell 320-259-4554

Little Falls 320-259-4554

Minneapolis 763-565-2000

Hutchinson 320-455-9127

Litchfield 320-298-1140

 

Premier Real Estate specializes MANY areas around Central MN including Saint Cloud, Waite Park, Rice, Royalton, Sartell, Royalton, Little Falls, Cold Spring, Saint Joseph, Elk River, Monticello, Ramsey, Saint Michael, Andover, Ham Lake, Anoka, Champlin, Buffalo, Glencoe, Brownton, Silver Lake, Kandiyohi, Dassel, Minneapolis, Maple Grove, Saint Louis Park, Saint Paul, Robbinsdale, Crystal, New Hope, Brooklyn Center, Brainerd, Nisswa, Aitkin, Albany, Coon Rapids, Sauk Rapids and more!

Blog author image

Noel Johnson

Passion for investing in real estate brought me to create Premier Real Estate Services in 2002. Years of purchasing, developing, and managing several rental properties, while assisting friends & cli....

Latest Blog Posts

St. Cloud Buyers and Sellers Slated for Home Loan Relief

 All across the country, the run of extremely low mortgage interest rates has provided a welcome counterbalance to the steady rise in real estate prices. Last week, cnet.com reported the U.S.

Read More

St. Cloud Thanksgiving Bounty: A Web’s Worth of Trivia

St. Cloud residents are well-steeped in the origins of the traditional Thanksgiving holiday. The Pilgrims escaped religious persecution, survived the perilous voyage on the Mayflower, met and

Read More

St. Cloud Homeowners Ponder Gold, Bitcoins, or Real Estate?

 Lately, the “gold bugs” are in full swarm—or whatever you call it when bugs are buzzing around the media, making a racket. Not the insect kind—the other ones: the

Read More

What Feature Adds the Most Value for Selling a Home in 2021?

 If you are considering selling your own St. Cloud home, one natural question you might be curious about is what specific features are currently boosting selling prices the most? A query to

Read More