Inflating housing prices in California is one of the leading causes for pushing up the conforming loan limits up to $417,000 for 2006. When a home mortgage is over $417,000 it is considered non-conforming to GSE's (Government Sponsored Entity)such as FNMA or FHLMC. When these agencies wont invest or buy loan amounts over this figure the home owner must seek "jumbo" or "super-jumbo" financing from home lenders. The median house price for Los Angeles County was $495,000 for 2005 which was a change from the previous year by 20.10%.

With the new Fannie Mae loan amounts increasing to 417,000 this allows many California homeowners to receive great conforming rates. Great time for purchase and refinance without having to get into a Jumbo rate.

With prices being so competitive is very important that you discuss with a mortgage professional, to figure out a loan that will fit your needs.

Homes are still appreciating at a fantastic rate! The demand is still there and its driving prices upwards.

Many California residents have found the real estate market to be too expensive at this time and they are looking to other states such as Arizona.

California has been a fantastic place to invest. Over the last few years property values have soared.