The increase in the 2001 single-family loan limit for Fannie Mae and Freddie Mac which was announced last week may only marginally increase mortgage-backed securities issuance, but will surely be a boon to lenders who might have been losing business to the jumbo fixed-rate market, sources say.

The Federal Housing Finance Board announced the results of its monthly interest-rate survey last week, which includes the average one-house sale price for October, the statutory index for calculating the conforming loan limits. The loan limit will be $275,000, up from this year's $252,700.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.