New conforming loan limit
$850,000
The cap on a normal home loan just jumped to $850K. Under that, it's a regular loan. Over it, it's a jumbo, and jumbos cost more.
What it means for you
If you're buying anywhere near $850,000, your loan just got better, overnight, on the same house:
Lower rateCheaper than a jumbo
Less downSmaller down payment
Easier yesSimpler to qualify
If a higher price felt out of reach a month ago because of the payment, it's worth another look now.
Rates, in plain English
The 30-year is around 7.2%, and it finally started ticking down this week. And here's the part most people get wrong:
The Fed's rate is not your mortgage rate. The Fed's rate is your credit card and car loan. Your mortgage follows inflation. So when the Fed raises rates to fight inflation, mortgage rates can actually go down. A Fed hike isn't automatically bad news for a buyer.
The one move
If you're thinking about buying near the top of your budget, let's run your real numbers, the payment may work now in a way it didn't a month ago.