Should I care about Loan Limits?

Should I care about Loan Limits?

(If the people are not allowed to borrow who will buy builders homes?)

I recently received an email to the subject of loan limits and I searched Google.com  on the topic in order to educate myself to what the subject of Loan limits in the Real Estate industry is? From an average Realtor who sells houses in the Pulaski county area I do not know what loan limits are exactly until I read that it is a subject that divides the democrats and republicans on how to fix the housing industry.  The Republicans want to decrease the amount of money that Fannie Mae and Freddie Mack can loan to the public in order to get the private sector to give loans and so tax payers do not have to pay for loans that are given from Fannie Mae and Freddie Mack. From the Republican perspective the American people will have lower taxes to pay if they do not fund Federal loans.

“In the Democratic view having higher loan limits will cost more dollars to tax payers, but it will allow more houses to be sold for home owners with a greater amount of home buyers who qualify for loans. Another way to look at the Democratic view is to think that if fewer people cannot afford higher priced homes then those people will not buy homes and many sellers will not get to sell homes.”( http://blogs.wsj.com/developments/2011/11/04/lobbying-titans-square-off-over-loan-limits/ )( http://blogs.wsj.com/developments/2011/10/27/loan-limit-battle-looms-for-house-republicans/ )

Not all Republican have taken this extreme position the subject is complicated because there is two different lobby groups Republicans representing larger urban areas are receiving heavy pressure from our Realtor lobby to raise home mortgage limits. While some banking pressure groups want to decrease home mortgage limits saying this will get private capital back into the housing business. I think many realtors are in support of going back to higher loan limits so that it will increase the amount of home buyers. The real estate market is very fragile now and needs all the help it can get.