Home Prices and Loan Limits

The chart here shows the appreciation rate of homes in major metropolitan areas across the country.

Fannie and Freddie’s parent organization, the Federal Housing Finance Administration, reported that its third quarter House Price Index (HPI) is now 1.7% higher than it was in the third quarter of 2007 (right–nine years ago, and the last time the conforming loan limit was raised).  Consequently, the agency will raise the conforming loan limits by 1.7% starting January 1st to $424,100.  The report also showed that home prices have increased 6.1% from this time last year, nationwide. The not-quite-as rosy-Case-Shiller Index shows that home prices have risen 5.5% during the same period across the country..

The second estimate of the GDP for the third quarter of 2016 rose 0.8% and gives an annualized 3.2% growth rate.  Other annualized figures of note: Consumer Spending was up 2.8%, and Personal Income rose 5.2%