Coming soon: Junior jumbos

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News item: The Senate today approved a more than $168-billion economic stimulus package today that will send rebate checks to low- and middle-income Americans. As expected, the Senate agreed with the House and lifted the conforming loan limit to help California and other high-cost real estate markets.

The L.A. Times reports: ‘And in a provision that could benefit California and other states with high housing costs, the measure includes a large one-year increase in the size of mortgages that can be backed by the government -- up to $729,750 -- making it easier for homeowners to refinance into more affordable mortgages.’

As I’ve said before, I strongly doubt it will be a one-year increase, and would be happy to hear from someone who believes Congress will lower the loan limits a year from now.