What Investors Need to Know About New FHFA Conforming Loan Limits
Recently, the Federal Housing Finance Agency (FHFA) announced its new conforming loan limits for 2022. This increase will make it easier for a larger group of borrowers to get a government-backed loan to purchase a property. The change will affect homeowners, real estate investors, and stock market investors.
Here's a look at how it will impact all three groups.
Home prices have been on a tear for the past year, rising over 18.5% year over year as of the third quarter, according to the FHFA House Price Index. The FHFA House Price Index is basically similar to the Dow Jones Industrial Average Index, except it looks at all the houses that sold in a particular time period and compares the sale price to the previous sale price. From there, it calculates the index value.
Source Fool.com
