Bush Stimulus To The Rescue!

Could it be our noble leader has actually done something that may benefit the American people and their pursuit of the "American Dream?" Forget about the $600 to everyone and $1200 to married couples (which if my math serves me correctly is the samething) the revision to Fannie Mae and Freddie Mac loan limits to me is the among the most important parts of the stimulus package.

The economic stimulus package includes a very important change to our conforming loan market that may be the key to putting a bottom into this runaway stage coach. The package includes and upgrade to the conforming loan limits which will change the conforming loan limit from $417k to $700k. This may not mean much to the average homeowner but in terms of options to help struggling homeowners this is huge. The Jumbo non-conforming market is all but dead as with the Alt-A and subprime markets that catered to the newly included loan sizes and represent a serious hole in the Florida and national loan markets. If Fannie Mae and Freddie Mac can truly fill the void, in the markets in that loan bracket, some of the most underpressure upper middle class foreclosure may indeed be averted by these homeowners finally having an option. This will in turn lead to a decelaration in falling home prices and help us put in a bottom.