Last Friday the House and Senate both voted to extend the higher loan limits for FHA as well as GSE’s Fannie Mae and Freddie Mac for another year. Going forward the loan limit for these loans will stay at their 2009 levels, 125% of the local median sales price but no more than $729,750 for a single family home. This will hel keep interest rates for loans over $417,000 in higher priced areas down so that those areas can still be financed. If that pool of funds dried up, the economy in those areas would suffer, or at least that’s the idea. Coupled with the extension of the $8,000 tax credit this should help bolster the housing market through at least the first half of 2010.