U.S. restricts raising cap on federally backed mortgages

federally backed mortgages

federally backed mortgagesBy Joe Light | The Wall Street Journal

Home prices continue to climb, but the U.S. government is keeping a lid on the size limit for federally backed mortgages, posing problems for home buyers in many pricey markets.

The Federal Housing Finance Agency on Wednesday said mortgage-finance giants Fannie Mae and Freddie Mac in most markets next year can back only loans of $417,000 or less. It will mark the 11th straight year that limit has been in place.

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PRTA suspends operations

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