It seems as though there's always something going on in Washington that could hurt the already shaky housing market.
The National Association of Realtors® is in the midst of a critical call for action to shape the outcome of legislation affecting Fannie Mae, Freddie Mac, and FHA loan limits. As you might know, the current loan limit increases are temporary and are set to expire at the end of the year. NAR is telling Congress that they should make these limits permanent. The House of Representatives has already voted to do so but the Senate has reduced the maximum limit to $550,000 in its bill (and would reduce other limits proportionally as well).
Making the higher loan limits permanent will increase investor confidence and the availability of safe, fair and affordable mortgage credit for borrowers and help those wanting to refinance. Higher loan limits will also help stabilize mortgage markets and the economy as a whole.
This issue is not just important for those in areas with the highest limits, like our own $729,750. If the current Senate version prevails, all market areas currently above $417,000 for Fannie and Freddie and above $271,000 for FHA will be hurt.
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