2008 Conforming Loan Limit Remains $417,000

Director James B. Lockhart of the Office of Federal Housing Enterprise Oversight announced that the maximum 2008 conforming loan limit for single-family mortgages purchased by Fannie Mae and Freddie Mac (the Enterprises) will remain at the 2007 level of $417,000 for one-unit properties for most of the U.S. (Higher limits apply to Alaska, Hawaii, Guam and the U.S. Virgin Islands as well as to properties with more than one living unit).

“While 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,” said Lockhart.

We had hoped to see a slight rise in the conforming loan limit as the property prices in Nashville continue to climb, but it is still positive news that the limits did not drop. View estate homes in Nashville, you will be pleasantly surprised by the size, price, and level of craftsmanship!

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2008 Conforming Loan Limit Remains $417,000

Director James B. Lockhart of the Office of Federal Housing Enterprise Oversight announced that the maximum 2008 conforming loan limit for single-family mortgages purchased by Fannie Mae and Freddie Mac (the Enterprises) will remain at the 2007 level of $417,000 for one-unit properties for most of the U.S. (Higher limits apply to Alaska, Hawaii, Guam and the U.S. Virgin Islands as well as to properties with more than one living unit).

“While 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,” said Lockhart.

We had hoped to see a slight rise in the conforming loan limit as the property prices in Nashville continue to climb, but it is still positive news that the limits did not drop. View estate homes in Nashville, you will be pleasantly surprised by the size, price, and level of craftsmanship!

If you enjoyed this post, you may also like:
Fannie Mae Releases New Short Sale Guidelines
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Nashville Mortgage Rates Drop, Again

Last week, Freddie Mac released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 6.20% with an average 0.5 point for the week ending November 21, 2007, down from the prior week when it averaged 6.24%. Last year at this time, the 30-year fixed-rate Nashville mortgages averaged 6.18%. The 30-year FRM has not been lower since the week ending May 10, 2007, when it averaged 6.15%. The 15-year FRM averaged 5.83% with an average 0.5 point, down from the previous week when it averaged 5.88%. A year ago, the 15-year FRM averaged 5.91%. The 15-year FRM has not been lower since the week ending February 2, 2006, when it averaged 5.81%.

“Both the producer price index and the consumer price index remained contained in October while industrial production fell,” said Frank Nothaft, Freddie Mac vice president and chief economist. “This allowed interest rates for the 30-year FRM to decline to the lowest levels since early May 2007 and the 15-year FRM to fall to a level not experienced since early last year.”

The current condition of the Nashville real estate market really lends itself to those who are willing to take small risks. We have been able to find several sellers who are nervous enough to sell way below the true market value allowing our clients to make a handsome profit. Don’t forget that mortgage rates are very low right now, in fact, they are quickly heading down to 2005 levels! We are currently offering special rates for 30 year mortgages in The Viridian and The Encore in downtown Nashville.

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Nashville Mortgage Rates Drop, Again

Last week, Freddie Mac released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 6.20% with an average 0.5 point for the week ending November 21, 2007, down from the prior week when it averaged 6.24%. Last year at this time, the 30-year fixed-rate Nashville mortgages averaged 6.18%. The 30-year FRM has not been lower since the week ending May 10, 2007, when it averaged 6.15%. The 15-year FRM averaged 5.83% with an average 0.5 point, down from the previous week when it averaged 5.88%. A year ago, the 15-year FRM averaged 5.91%. The 15-year FRM has not been lower since the week ending February 2, 2006, when it averaged 5.81%.

“Both the producer price index and the consumer price index remained contained in October while industrial production fell,” said Frank Nothaft, Freddie Mac vice president and chief economist. “This allowed interest rates for the 30-year FRM to decline to the lowest levels since early May 2007 and the 15-year FRM to fall to a level not experienced since early last year.”

The current condition of the Nashville real estate market really lends itself to those who are willing to take small risks. We have been able to find several sellers who are nervous enough to sell way below the true market value allowing our clients to make a handsome profit. Don’t forget that mortgage rates are very low right now, in fact, they are quickly heading down to 2005 levels! We are currently offering special rates for 30 year mortgages in The Viridian and The Encore in downtown Nashville.

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The Media Vs. The Real Estate Market

With all of the doom and gloom on the nightly news, this question has to be asked: Is the news media creating an artificially bad real estate market? Is the news media at least responsible for making a bad situation worse? I believe that the answer has to be a resounding yes. Let me start by clarifying, the real estate market in Nashville is still appreciating and homes are not languishing on the market for years at a time. The story in Nashville is quite the opposite of most of the stories you hear across the United States, but our market has slowed more than what the conditions warrant. For example, our unemployment rate is less than 5% and has not risen in more than 28 months whereas the national unemployment rate is beginning to climb. Our average household income index has also risen faster than area homes prices.

It would be rather unrealistic to gloat that all of Nashville’s indicators are making a positive move, there have been a few traditionally bad signs for the market. The foreclosure rates and numbers are up over last year, but I could make the argument that the people who are losing their homes were overextended to begin with and would have eventually defaulted. It may actually be healthy to trim the uncredited “fat” from the Nashville market and allow currently qualified buyers acquire those properties. Obviously, the media simply talking about a bad national real estate market will not cause foreclosure rates to rise, but the doom and gloom will affect qualified buyers and their willingness to jump into an ownership position.

Perhaps the best economic indicator for Nashville is that rental rates have risen across the board. Single family home rentals, downtown condo rentals, suburban apartment rentals, Germantown townhouses, you name it, they are up on average 8% over last year. What does this mean? It means that there are plenty of people in Nashville who can afford and want to live in Nashville and that housing demand is still high. It also probably means that many people who are qualified and can afford to buy a home are simply choosing not to do so. I would make the argument that the national media has a lot to do with that decision.

Another great indicator for the Nashville market is that the commercial real estate market is one of the strongest in the United States. At the writing of this post most national publications rank Nashville in the top 5. In fact, the Hendersonville commercial real estate and Cool Springs commercial real estate markets are two of the strongest sub-markets in the history of middle Tennessee.

cool springs area of Tennessee

Of course there are many, many other factors that contribute to the overall market’s health, but consider these following accolades: Franklin was the 2006 “Best small town in America”, Smyrna is “one of the best places to retire in America in 2007”, Nashville is “the second best major city to relocate your business in 2007”, and the list goes on and on. You can also count on the Nashville Remarkable Homes Team to bring you the most up to date information.

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The Media Vs. The Real Estate Market

With all of the doom and gloom on the nightly news, this question has to be asked: Is the news media creating an artificially bad real estate market? Is the news media at least responsible for making a bad situation worse? I believe that the answer has to be a resounding yes. Let me start by clarifying, the real estate market in Nashville is still appreciating and homes are not languishing on the market for years at a time. The story in Nashville is quite the opposite of most of the stories you hear across the United States, but our market has slowed more than what the conditions warrant. For example, our unemployment rate is less than 5% and has not risen in more than 28 months whereas the national unemployment rate is beginning to climb. Our average household income index has also risen faster than area homes prices.

It would be rather unrealistic to gloat that all of Nashville’s indicators are making a positive move, there have been a few traditionally bad signs for the market. The foreclosure rates and numbers are up over last year, but I could make the argument that the people who are losing their homes were overextended to begin with and would have eventually defaulted. It may actually be healthy to trim the uncredited “fat” from the Nashville market and allow currently qualified buyers acquire those properties. Obviously, the media simply talking about a bad national real estate market will not cause foreclosure rates to rise, but the doom and gloom will affect qualified buyers and their willingness to jump into an ownership position.

Perhaps the best economic indicator for Nashville is that rental rates have risen across the board. Single family home rentals, downtown condo rentals, suburban apartment rentals, Germantown townhouses, you name it, they are up on average 8% over last year. What does this mean? It means that there are plenty of people in Nashville who can afford and want to live in Nashville and that housing demand is still high. It also probably means that many people who are qualified and can afford to buy a home are simply choosing not to do so. I would make the argument that the national media has a lot to do with that decision.

Another great indicator for the Nashville market is that the commercial real estate market is one of the strongest in the United States. At the writing of this post most national publications rank Nashville in the top 5. In fact, the Hendersonville commercial real estate and Cool Springs commercial real estate markets are two of the strongest sub-markets in the history of middle Tennessee.

cool springs area of Tennessee

Of course there are many, many other factors that contribute to the overall market’s health, but consider these following accolades: Franklin was the 2006 “Best small town in America”, Smyrna is “one of the best places to retire in America in 2007”, Nashville is “the second best major city to relocate your business in 2007”, and the list goes on and on. You can also count on the Nashville Remarkable Homes Team to bring you the most up to date information.

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