Current FHFA loan limits for single family residences are 726,200 in the lower 48 states and $1,089,300 in the high-cost states of Alaska and Hawaii.
The FHFA House Price Index , which tracks the rate of home appreciation, rose 3% for Q2 2023 vs Q2 2022. Using this data, the estimated conforming loan limit for 2024 could beclose to $747,986 in the lower 48 and $1,121,979 in Alaska and Hawaii.
To help originators expand their market and gain a competitive edge, Rocket Pro TPO has announced it will offer conforming loan rates on increased loan amounts starting today. They won’t wait until the official limits are announced. Their conforming rates will apply to loans with the following dollar amounts:
|
Units |
Old Loan Limit |
New Lower 48 |
New AK & Hawaii |
|
1 |
$726,200 |
$750,000 |
$1,125,000 |
|
2 |
$929,850 |
$960,000 |
$1,440,450 |
|
3 |
$1,123,900 |
$1,160,750 |
$1,741,125 |
|
4 |
$1,396,800 |
$1,442,500 |
$2,163,900 |
With interest rates rising at the fastest pace in years and other costs, like the costs of credit reporting, also rising, brokers and other originators have seen their volumes decline. The shrunken market has led to fierce competition for the remaining market share. Some lenders have become more innovative, trying to create new go to market strategies and new loan programs. Other lenders, such as United Wholesale, have tried to lock-up business by leveraging their scale and implementing exclusivity agreements.
According to Mike Fawatz, EVP of Rocket Pro TPO, now is “the time to provide, not a time to divide.” In keeping with this theme, Rocket Pro TPO will hold loans that fall within the old and new conforming loan limits in portfolio until the FHFA formally announced the new limits and starts purchasing at the higher loan limit.
This offers Rocket Pro TPO brokers a chance to leverage better pricing, at least for the next 60 days or so. Sure, this only applies to borrowers in a small segment of the market, and for a limited period of time. But according to Mike it’s about more than the actual loan program. “We see a lot of numbers about the mortgage broker market, but mortgage brokers are more than just numbers. They are about families. And right now, it’s important we let them know that we are with them, in the trenches, doing everything we can to help them stay together and drive business”.
