Conforming Loan Limit to Stay the Same in 2007

The maximum conforming loan limit will remain $417,000 for most homes that sell in 2007 because the average home price in October 2006 was lower than the average price in 2005, the Office of Federal Housing Enterprise Oversight says.
OFHEO sets this limit annually, capping the amount that government-chartered secondary mortgage market companies Fannie Mae and Freddie Mac can buy or guarantee. Generally, conforming rates are lower than “jumbo” loan rates that exceed the limit.
Alaska, Hawaii, Guam, and the U.S. Virgin Islands are recognized by OFHEO as ‘high-cost’ areas and the limits in parts of those states are higher.