The Washington Post Still Has Not Heard About the Housing Bubble

A Post article on the lowering of the loan limit for Fannie and Freddie backed mortgages could hurt the "faltering" housing market, pushing prices down further. Of course the current price decline is simply the deflation of a bubble. Nationwide prices still have to fall by around 10 percent to return to their trend level.

The piece is also somewhat confused on the effect that lowering the limit would have. It tells readers that:

"The loan limit [the new limit of $625,500]— down from $729,750 ...