Conforming loan limit to increase.....

Passed last friday by the senate and is expected to be signed by the president this week. This would increase the "conforming" loan limit base on the area you live in and the median home price for that area. This could raise the conforming loan amount to as much as $730,000 in some of the more expensive places to live. This could save many homeowners up to $300-$400 a month by getting a more affordable mortgage payment.

 

I am just curious how investors react to this and if it affects interest rates in a negative fashion. If you were looking to buy a home I think right now is the perfect time if the area you want to buy in, the median prices of home are above the past conforming  amount of $417,000. The one bad thing that will happen is the banks will not have any guidelines to figure out all the new limits and they will make it even touger to get a loan if you are refinancing or buying a home over the old conforming limit.