I received the email message from NAR about the campaign to tell our congressional leaders to reinstate the FHA limits that were lowered about 15% as I recall in the higher priced cities and states. While this doesn't affect our area here with the median price so much lower, I am wondering if they took the improvement of home affordability as from what I read a monthly mortgage payment is almost 40% cheaper than it was in 2006 when the limits were increased? Does this lowering really affect any of you real professionals in your area to the point that you loose Buyers or is this another statistical exercise?

http://www.housingwire.com/2011/11/09/monthly-mortgage-payment-almost-40-cheaper-than-2006

FHA loans were created to help low-income people affordably finance a home -- the rich people glommed on to it in order to get the good rates. Seems to me that NAR vigorously supports rich people getting and keeping these loans.

Not really in my area. As you say, conventional rates are so much lower now anyway that I haven't seen a significant drop-off of sales of homes within the affected price ranges.

I did get two closings involving higher-limit FHA loans through just before they re-set. From what I know of their finances, though, both buyers could easily have done a 10%-down conventional instead with only a slight bump up in interest rate.

They might could have gotten a good rate from a credit union.