November 13 2010 (Chris Moore)
President Obama recently signed legislation that would allow the higher conforming loan limits to continue in current high cost areas for another year. The provision means homebuyers and homeowners in expensive housing markets will continue to get a break on interest rates when they buy or refinance through 2011.

The limit applies to areas that include California and New York. Alaska, Hawaii, Guam and the U.S. Virgin Islands get even higher conforming loan levels.

Real estate industry heavyweights such as real estate agents, mortgage bankers, homebuilders, and others, arguing the housing market would suffer with lower conforming limits, lobbied to keep the upper limit in high-priced markets.

Had the previous legislation been allowed to lapse, the conforming loan limit would have dropped to $625,000.

Tags: conforming loan limits, mortgage bankers, real estate agents, homebuilders, housing market, interest rates, refinance