Will raising the Fannie Mae and Freddie Mac Lending Limits Help? Not until we get an across the board minimum limiy of at least $450,000 for FHA. The people who are credit damaged and or lack credit need FHA limits to allow them to buy decent houses anywhere in the country.
Our current NAR President is looking to raise the Fannie Mae and Freddie Mac loan limits and that is a good thing but we need people who can enter the market to start up the housinf market not the trickle down effect. As we see the $400k and up market lag farther beghind in the econmoy we need to rememeber the business model for housing is an inverted pyramid and the 1st time buyer or damaged credit buyer need to 'PUSH UP" the market.
NAR has called on Congress and the Bush administration to
increase the loan limits for Fannie Mae and Freddie Mac from the current ceiling of $417,000 to $625,000. National Association of REALTORS President Dick Gaylord noted, "This change will permit more families to enter the housing market by making more mortgages available with lower interest rates. Increased home sales will lower inventories and immediately start stabilizing the housing market and the economy."