Economics
Fannie Mae, Freddie Mac Will Back Even Bigger Mortgages
- Jumbo mortgage threshold rises to $424,100 for most of U.S.
- Change will help first-time buyers, Realtors and brokers Say
A contractor installs trim on a home under construction in Sycamore, Illinois.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
The definition of a jumbo mortgage is changing for the first time in more than a decade.
Fannie Mae and Freddie Mac in 2017 will back mortgages of up to $424,100 in most of the U.S., an increase from $417,000, the Federal Housing Finance Agency said Wednesday. The change, which will increase the limit for areas with the most expensive homes to $636,150 from $625,500, comes after home prices in the third quarter pushed past their level of a decade ago.