Policy change: The federal government is about to back mortgages of nearly $1 million for the first time, The Wall Street Journal reports. The maximum size of home mortgage loans eligible for backing by Fannie Mae and Freddie Mac are expected to jump sharply in 2022, a reflection of the rapid appreciation in home prices. The increase may make it easier and cheaper for some borrowers to buy a home, but the higher limits are also likely to elevate debate about how big of a mortgage is too big to be backed by the government. Read the full story.
Soaring output: Crude oil production from the Permian Basin, the largest U.S. oil field, is set to surpass its pre-pandemic record in December, a swift turnaround that has not been replicated in the country’s other oil regions, Reuters reports. Oil output from the Permian, located in Texas and New Mexico, is forecast to reach a record 4.953 million barrels per day in December, as output has come back with the surge in economic demand. Read the full story.
ICYMI: Louisiana’s auto insurance premiums have skyrocketed in 2021 to the most expensive in the nation more than a year after legislation was passed promising lower rates, The Daily Advertiser reports. Some members of Louisiana’s Task Force on Affordable Automobile Insurance who supported the 2020 bill from Republican House Speaker Clay Schexnayder concede that the state’s rates are continuing to spike, though the committee chair says the new law hasn’t had time to make an impact. Louisiana’s average annual auto insurance premium is $2,839, double the national average and 30% more expensive than No. 2 Michigan. Read the full story.