The New Year Will Bring Several Changes That Will Affect The Real Estate Market

The Federal Reserve announced on Wednesday that starting January it will begin scaling back its bond purchase program from $85 billion per month to $75 billion per month.

2012’s Biggert-Waters Flood Insurance Reform Act, if not modified, will continue to affect owners of older homes who have subsidized flood insurance.  A 25% increase in insurance is a large amount to assimilate all at once and makes it more difficult to sell those properties if a mortgage is involved.

New FHA loan limits take place January 1, 2014.  For high cost areas, the new national loan ceiling limit will decrease from $729,750 to $625,500.


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