New limits on mortgage size likely to affect high-end home prices in D.C. area

The Washington Post reports:

Mortgages for the Washington area’s priciest homes are about to get more expensive.

This fall, the government is scheduled to stop backing loans of more than $625,500, making them subject to higher interest rates and down payments. The change could drag down home prices, especially in upscale neighborhoods, and deliver yet another blow to the faltering housing market.