Will the increased FHA loan limits be good for Orange County housing market?

FHA raised the loan limits. But is this good for Southern California.

For the first time in years first time home buyers have felt hope that houses may be priced low enough that they could afford to buy a house. $417,000 seemed to be a magic number for numerous houses in Anaheim that haven't been this low in more than three years. Many loan officers I have spoken to think that the FHA loan interest rates will increase because now Fannie Mae and Freddie Mac will be taking on more risk with the increased loan amounts. Do you think the increased FHA amount will cause home prices to stabilize? What about the low interest rates? Perhaps Jumbo loan interest rates will come down and coforming loan interest rates will go up? Any predictions on how this is going to effect the housing market?