The U.S. House of Representatives approved last week the legislation to raise the conforming loan limits to as high as $729,750 in high-cost areas. Research shows that it would enable an additional 138,000 Americans to purchase homes, and 200,000 families to refinance their homes safely and affordably.

Raising the conforming loan limit will provide immediate relief to borrowers and ease downward pressure on current housing markets. This could result in more than 300,000 additional home sales and strengthen current home prices by 2-3%.

The national sub prime meltdown has had a dramatic impact on both the cost and availability of mortgages in many markets. Since August 2007, the interest rates for jumbo borrowers have been more than 1 percentage point higher than conforming loans, which can cost homeowners up to $400 month in higher interest payments.

The President is expected to sign the legislation by the February 15^th. The increase in the conforming loan limits will last through 2008