Unless Congress acts, the current loan limits will expire on Sept. 30 and the cost of a mortgage could rise significantly. More than 669 counties in 42 states and the territories would be negatively impacted by the loan limit change.  The average decline in loan limits would be more than $68,000 nationally, and loan limits for FHA, Fannie Mae, and Freddie Mac-insured loans will drop to 115 percent of the local area median home price with a cap of $625,500.  Currently, limits for these loans are 125 percent of local area median home price with a cap of $729,750.

Contact your representaives (you can even do it by email) and let them know this is a big mistake for the housing market.