New Mortgage Limit May Set Buyers Back

The New York Times reports:

For most potential buyers, the impending change in mortgage limits is just another obscure wrinkle in federal policy. But for some New Yorkers, it could mean the difference between buying and not buying a new home.

On Oct. 1, when the limit on federally guaranteed loans drops to $625,500 from the current level of $729,750, hundreds of buyers in the city and nearby suburbs will either have to come up with larger down payments to stay under the new limit or face the prospect of applying for jumbo loans — anything above $625,500 — which have higher interest rates.

Can you say overpriced real estate in NYC?