The Office of Federal Housing Enterprise Oversight announced last Wednesday that any downward revision to the 2007 conforming limits that are due to dropping home prices would be deferred for one year. This means that, contrary to earlier Street projections, the conforming loan limits will remain unchanged next year.

In a press release, OFHEO outlined the procedures for determining the 2007 conforming loan limits, making it evident that the conforming loan limit will hold at $417,000 for now. The GSE governing body also clarified how the October-to-October price change would affect the maximum loan limits.

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