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I agree that the GSE loan limits looks like a lagging indicator.

Do any of you remember the old Wendy's commercial where Clara, the grandmotherly looking lady, demands, "Where's the Beef?" So where's the news here??? The story tries to reason that increases in the GSEs' loan limits PREDICT a still-vital housing market. That's bass-ackwards reasoning in my book. I would argue that loan limits rise because demand HAS BEEN strong and housing prices ALREADY have risen. If you look at it that way, it's a LAGGING indicator, not a leading one. It mirrors the market, not predicts it.

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