The Office of Federal Housing Enterprise Oversight this morning confirmed that 2008 conforming loan limits will remain unchanged at $417,000 for single-unit properties in most of the nation (some areas, including Hawaii, are designated as “high cost” and have higher limits). The conforming level has not changed in three years, reflecting sustained price declines at a national level. From the press statement:
The FHFB reported the decline in the average price was $10,685 or 3.49 percent, from $306,258 in October 2006 to $295,573 in October 2007. The combined two-year decline is now 3.65 percent. â€œWhile the house price survey data used in determining the conforming loan limit show a decline over the past year, as previously announced and consistent with the proposed new conforming loan limit guidance, the level will remain at $417,000 for the third straight year,â€? said Lockhart.
OFHEO earlier in the year published proposed guidance covering how the conforming limit would be calculated going forward (something HW covered here), and the regulator said today that it is reviewing comments received. It did not provide a date when it expected to issue final guidance on any revision to conforming calculations, although OFHEO said that any changes to would not impact the 2008 conforming limit. For more information, visit http://www.ofheo.gov.