A report from the National Association of Home Builders (NAHB) found that a decrease in loan limits for Fannie Mae, Freddie Mac and the Federal Housing Administration set to take effect on Oct. 1 would have a negative impact for the housing market.

According to the report, the lower loan limits would result in a downfall in housing demand and home prices. The report said any home up for sale that the GSEs could not purchase with FHA-insured financings because of the lower loan limits “would require financings with higher mortgage interest rates, higher downpayments and stringent credit history thresholds.”

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