The U.S. government will back $1 million mortgages for the first time. What could go wrong?
The Federal Housing Finance Agency made this announcement on Tuesday, they say, in order to keep up with rising home prices. This is odd, given that home prices have dropped for the third straight month. The new maximum mortgage that will be backed by Fannie Mae and Freddie Mac will increase to $1,089,300, up from $970,800 in what the government considers high-cost markets. These loans will still come with a hefty interest rate, increasing every day.
I mean, thank goodness. I’d been wondering who would help these people who want million-dollar homes!