Hawaii’s real estate market could get a boost from the national economic stimulus package signed by President Bush recently.  What is in store that effects the housing market?

The stimulus package’s main tool is tax rebates for consumers, but the law also temporarily will raise the maximum value of “conforming” mortgage loans that have lower interest rates than “jumbo” loans.

A higher conforming loan limit is expected to reduce mortgage payments on homes bought for well above the median price in Hawai’i — mostly homes priced from about $782,000 to $912,000.

The change also is expected to entice many existing homeowners to refinance jumbo mortgages over $625,500 and higher-interest second mortgages with lower-priced conforming loans, potentially reducing monthly payments and leaving them with more disposable income.

Also read, Homeowners May Be Big Winners In Stimulus Plan from CNBC.

My only question is this change in the conforming loan amount is until the end of the year.  Then it reverts back to the $624,500 for Hawaii.  What effect will that have?  How do you change it only temporarily?