Mortgage costs to rise in country’s priciest regions

Mortgage rates will increase in the country's priciest regions in October.A recent MarketWatch article explained that mortgage costs are set to rise in the country's most expensive regions this fall, as conforming mortgage limits are scheduled to expire.As a result, limits in the priciest regions will fall from $729,750 to $625,000 within the contiguous U.S.Any loans issued worth more than the conforming limit are considered jumbo loans, which then cannot be purchased and securitized by Fannie Mae or Freddie Mac. Thus, the mortgages will carry higher interest rates. The conforming limits will be applicable to both first mortgages and refinancings.The limits will vary by market, with the lower limits equal to 115 percent of the median single-family home prices, which can range from $417,000 to $625,500.”The fact that the limits are changing is going to raise the cost of homeownership for homes priced in that range between the old and the new limit,” Greg McBride, senior financial analyst for Bankrate.com, told the news source.McBride also relayed that, while the limits won't be lowered until October 1, many lenders may begin adjusting their loan quotes to reflect the higher rates beginning as soon as the end of July.In Houston, real estate transactions have increased during the last decade, as Rice University found it to be the fastest-growing metro region. This ranking might affect home loan rates come the fall, however.Courtesy of 2M Realty News

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