FHFA Raises 2023 GSE Conforming Loan Limits to $726,000

The Federal Housing Finance Agency on Tuesday increased the conforming loan limit values for mortgages to be acquired by Fannie Mae and Freddie Mac for one-unit properties to $726,200, an increase of 12.21 percent ($79,000) from $647,200 in 2022.

The Housing and Economic Recovery Act  requires that the baseline CLL for government-sponsored enterprises be adjusted each year to reflect changes in the average U.S. home price. Yesterday, FHFA published its third quarter House Price Index report, which includes statistics for the increase in the average U.S. home value over the past four quarters. According to the nominal, seasonally adjusted, expanded-data FHFA HPI, house prices increased 12.21 percent, on average, year over year.

For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the applicable loan limit will be $1,089,300, which is 150 percent of $726,200.

Special statutory provisions establish different loan limits for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limit will be $1,089,300 for one-unit properties.

FHFA said due to rising home values, CLLs will be higher in all but two U.S. counties or county equivalents.