Conforming Loan Limit Increase Doesn’t Mean Anything For Austin

Not a bad thing in my book. We don’t need more people doing tear-downs in Terrytown to build $1million dollar homes, nor do we need any more Toll Brothers homes near Lake Travis. If you want a house that expensive, you should be darn well able to pay for the increased mortgage rate premium that comes along with a larger loan (and more implied risk).

I am troubled that the GSE’s may (or will) end up holding a bag of bad mortgages created in other bubble markets in order to improve liquidity, at the expense of lower cost states like the Midwest or shocker – Texas.

Thanks for the comment. While an increase in the conforming loan limit would definitely help the market (and business,) I can appreciate your point of view.

Sorry to hear that there will be no benefit from this bill. To be sure the benefit is limited even in the areas where it will have full effect such as the areas I serve. It almost seems like the banks don’t want to lend.