Congress votes to raise FHA-backed mortgage

The U.S. housing industry scored a victory after the House and Senate voted to raise the size of mortgages backed by the Federal Housing Administration (FHA) to $729,750, Bloomberg reported.

Republicans were split between retaining the lower limit of $625,500 or supporting a higher limit; lawmakers who backed higher limits said that withdrawing federal support could keep the housing market bearish.

The final compromise, which dropped a similar increase to loans backed by mortgage firms Fannie Mae and Freddie Mac, represents a mixed victory for the housing industry.

While the increase to $729,750 is expected to spur some additional home buying, it’s not clear by how much. FHA loans make up a smaller share of the market than those purchased by Fannie Mae and Freddie Mac.

To read more, click here.