New Loan Limits and Inflation Data Coming Tomorrow

A few quick industry updates I want to share with you today. I watch the trends and headlines so I can share this information with my clients, and we can see how mortgages might be affected going forward.

Conforming Loan Limits

The FHFA is the organization that makes the announcements on new conforming loan limits. Yesterday they announced that the limits are increasing to $726,200.

Which seems high, but that’s the way it is. Here in Southern California, a lot of areas are close to over a million dollars. All of the nearby counties are seeing that average home prices are well over these limits.

Inflation Data

I’ve talked a lot about inflation data and why we need to be watching it, because it drives the ship for interest rates. Tomorrow is the main metric that The Fed watches to determine the action they are going to take to manage inflation. Fingers crossed that the inflation data really has peaked and we will see it starting to come down.

Keeping a Long-Term Focus on Real Estate

It’s geeky stuff, but it’s what we are watching. I still believe that if we see the numbers trending down, then it really is a good time to buy right now. Even though you mortgage rate will be a little higher, you’ll have the leverage to negotiate a better price.

Then, we can always fix the rate later. Remember that you aren’t locked into the same financing forever. There are often options to refi when the rates come down again. Keep your focus on the long-term strategy.

Just a little food for thought! I’m always here to answer your questions or share personalized recommendations if you are looking at options to buy a home or refinance. Reach out any time to learn more about the mortgage options we offer here at Franklin Loan Center.