Last month Congress failed to extend the Fannie Mae, Freddie Mac, and FHA conforming loan limits and allowed them to expire Sept. 30. Since then, the Senate passed an amendment to an appropriation bill that would restore the $729,750 loan limits through December 2013. The Senate and House are now working out the differences between the Senate bill and the House bill, which the House passed earlier this year, but it did not reinstate the higher loan limits. If the House and Senate agree on a final bill, we will have a two-year extension to the conforming loan limits. C.A.R. is also working with the California Congressional Delegation to ensure this provision is included in the final bill.
With Santa Barbara’s current median house price at $780,000 (down almost 36% from Santa Barbara’s 2005 peak median house price of $1.216,000) the passing of this bill would help to keep sales at a good pace. Coupled with historically low interest rates this will be a great equation for buyers who have been waiting to enter the market at a good time. I look forward to keeping you updated on this and other changes that could help you with a great home purchase in Santa Barbara.