The new GSE conforming balance limit - to be announced next month - is expected to rise substantially, possibly experiencing the biggest year-over-year percentage increase ever, according to Countrywide Securities.

The limits, based on October-over-October changes in the Federal Finance Board's average home sale price, is expected to increase up to 16% from last year's single family limit of $359,650, raising the number to $417,000. The previous record rise was in 1986, when the single-family limit rose 15,6%. Even if the average price for October 2005 declines from September's $307,100, Countrywide analysts still expect the limit to be over $410,000.

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