In a recent call for action, the National Association of Realtors has asked Realtors to weigh in on the impact of changing mortgage costs, which are set to decrease on September 30 – which may subsequently further prevent housing recovery.

Hoping to ease mortgage financing and make it affordable for qualified buyers, NAR asks Realtors to submit a letter to Congress which requests the permanent establishment of current mortgage loan limits for FHA and GSEs within the given market.

“In today’s real estate market, lowering the loan limits will make mortgages more expensive for households nationwide. Private investors have not yet returned to housing markets, and FHA and GSE mortgages together continue to constitute the vast majority of home financing available today, which makes it particularly critical to extend the current limits. Lowering the loan limits now will leave credit-worthy borrowers without access to affordable financing and will prolong our housing crisis,” states the body of the pre-formatted letter.

The previous notion that lower rates would only impact high-cost markets has been challenged by HUD and FHA-who say that more than 669 counties in 42 states will be negatively impacted by reduced loan limits, which have an average decline of more than $68,000.

Without any alterations made, Miami-Dade County would experience a FHA loan limit reduction of $78,750, to $345,000 on October 1.

GSE loan limit changes are measured as following: FHA limits below $417,000 will be paired with Freddie Mac and Fannie Mae limits of $417,000, and those above $417,000 will match the higher FHA limit.

“Unless Congress acts, FHA and GSE loan limits will drop to 115% of local area median home price with a cap of $625,500 (from the current limit of 125% of local area median home price with a cap of $729,750),” said NAR.