The Federal Housing Finance Agency (FHFA) announced the maximum conforming loan limits for conventional conforming loans to be acquired by Fannie Mae and Freddie Mac in 2019. In most of the U.S., the 2019 maximum conforming loan limit for one-unit properties will be $484,350, an increase from $453,100 in 2018. According to FHFA's seasonally adjusted, expanded-data HPI, house prices increased 6.9 percent, on average, between the third quarters of 2017 and 2018. Therefore, the baseline maximum conforming loan limit in 2019 will increase by the same percentage. For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit will be higher than the baseline loan limit. The new ceiling loan limit for one-unit properties in most high-cost areas will be $726,525 — or 150 percent of $484,350. As a result of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, the maximum conforming loan limit will be higher in 2019 in all but 47 counties or county equivalents in the U.S. For a map showing the 2019 maximum loan limits across the U.S. click here. Source: FHFA -- Note, announcements of similar increases for FHA and VA Loans should be coming shortly and this means more options for low-cost/low down payment financing for most Americans.
Generation Z is ambitious about homeownership, and it shows through their savings habits. According to realtor.com®, Gen Z-ers (ages 18 to 24) interested in homeownership are two times more likely than previous generations to be saving or plan to be saving for a home by age 25 - and two of five Gen Z-ers are aiming to become homeowners by that age. These insights are the result of a survey realtor.com® conducted in conjunction with Harris Interactive to better understand the generational differences in relation to homeownership and aspirations. "Gen Z-ers don't just want to become homeowners; they want to do it at a younger age and we found that they're saving or planning to save for it accordingly," said Danielle Hale, chief economist at realtor.com® -- "Their desire for homeownership may be similar to that of millennials and Gen X-ers, but graduating into one of the best labor markets in generations might give them the boost they need." Generation Z's homeownership fervor closely resembles that of millennials and Generation X, as 79 percent are certain they want to (or already do) own a home, compared to 82 percent for both Gen Y and Gen X. Gen Z-ers who answered "yes" or "maybe" to desiring homeownership are more than twice as likely to have started or plan to start saving for a home before age 25 (74 percent), compared to what Gen Y (33 percent) and Gen X (33 percent) actually reported accomplishing. Overall, only 4 percent of Gen Z-ers are sure that they don't want to own a home, on par with Gen Y (5 percent) and Gen X (6 percent). Generation Z is least likely to become or plan to become a homeowner for investment purposes (29 percent) or tax benefits (16 percent). Instead, they cite wanting to customize their space (61 percent) as the top reason for homeownership and tied with millennials for wanting to raise their family in a home they owned (55 percent). Source: PR Newswire
There’s no place like home. The median length of time Americans have owned their homes rose to a record of more than eight years in the third quarter, according to ATTOM Data Solutions. That’s up from 4.5 years when the recession ended in June 2009. With interest rates on the rise, moving will be “even less appealing as homeowners may not want to give up their rock-bottom rate to buy a new home at the now-higher rates,” according to Daren Blomquist, senior vice president at the firm. The lengthening home-ownership tenure is also a consequence of tight housing inventory, a trend toward aging in place and a lack of appealing job opportunities in other communities. Source: Bloomberg