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Price of Average U.S. House Rises 8.5 Pct

WASHINGTON (Reuters) - The October average U.S. house price jumped 8.5 percent from a year ago, setting the stage for mortgage giants Fannie Mae and Freddie Mac to raise the limit on mortgages they can buy, a Federal Housing Finance Board survey showed on Tuesday. The average house prices rose to $264,540 last month from $243,756 the same month a year ago, the FHFB said in a statement. The increase paves the way for Fannie Mae (FNM.N: Quote , Profile , Research ) and Freddie Mac (FRE.N: Quote , Profile , Research ) -- government-sponsored enterprises that buy mortgages from lenders and hold them or repackage them as securities for investors -- to buy loans up to about $359,500. Their current limit is $333,700. The increase would mean that home buyers could borrow up to that amount, known as the conforming loan limit, at interest rates of about a half of a percentage point lower than for bigger mortgages, referred to as jumbo loans. Source: reuters.com

1.Price of Average U.S. House Rises 8.5 Pct
 http://www.news-from-newspapers.com/en/reuters.com/2004/11/27/Price_of_Average_U.S._House_Rises_8.5_Pct.html











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