They Buried The Lede

Deep in the news reports about the government economic stimulus package today was this nugget of information:

To address the mortgage crisis, the package also raises the limits on Federal Housing Administration loans and home mortgages that Fannie Mae and Freddie Mac can purchase to as high as $725,000 in high-cost areas. Those are considerable boosts over the current FHA limit of $362,000 and the $417,000 cap for Fannie Mae and Freddie Mac’s loan purchases.

For those of us living in high cost of living areas, that has the potential for a much bigger and more long-term boost to the economy than a quick cash infusion, becasue now many more people will be able to avoid some of the ‘jumbo’ loan penalties put on loans that are bigger than FHA guidelines.