Congressional Loan Limit Guarantees Fall

On October 1 the loan amounts that can be guaranteed by the agencies Freddie Mac, Fannie Mae, and the Federal Housing Administration dropped in higher-priced markets from $729,750 to $625,000, or a -14.35% reduction. While $625,000 is far above the national median price of $168,300, affecting only 1.3% of loans, this reduction can have an impact on the overall prices of homes by creating even tighter mortgage lending standards and cause some sellers to reduce their asking prices.

Source: The Wall Street Journal

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