FHFA conforming loan limits increase to $766,550

The Federal Housing Finance Agency (FHFA) has approved an increase in the baseline conforming loan limit for mortgages backed by Fannie Mae and Freddie Mac for the year 2024. The new limit is set at $766,550, marking a 5.5% rise from the 2023 limit of $726,200.

This adjustment is reflective of the average home price increase of 5.56% observed between the third quarters of 2022 and 2023. It's worth noting that this growth in the conforming loan limit is more moderate compared to the previous year's substantial increase of 12.21%.

In regions where 115% of the local median home value surpasses the baseline conforming loan limit, the Housing and Economic Recovery Act (HERA) dictates that the ceiling be set at 150% of the baseline limit. Consequently, the new ceiling loan limit for one-unit properties will now stand at $1,149,825.