WASHINGTON - The Department of Housing and Urban Development on Thursday asked Freddie Mac to reconsider its decision not to lower the maximum size of the home loans it buys despite a 3% drop in housing prices.

On Tuesday, after the price index traditionally used to set the purchase ceiling was released, Freddie Mac said it would retain its $203,150 limit. Fannie Mae said it leaning toward the same decision but wanted to study the issue further.

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