Zillow senior economist Aaron Terrazas crunches out analysis in the immediate wake of the Federal Housing Finance Agency announcement it had eased conforming loan limits for 39 counties as part of its rule that the $417,000 loan limit would stand for most of the nation.
Here are Terrazas big take-aways:
- Conforming loan limits will increase in 39 counties nationwide in 2016, with the largest changes in the Boston, Denver, Nashville, San Diego and Seattle metro areas.
- The changes will push about 60,000 U.S. homes below the conforming loan limit.
- Denver will feel the largest impact of the changes – both in the number of jumbo homes and the share of homes requiring a jumbo loan.
This should be a tail-wind for home builders in several of these markets.