WASHINGTON—The Federal Housing Finance Agency has announced its maximum conforming loan limits for mortgages acquired by government-sponsored enterprises Fannie Made and Freddie Mac will increase in 2018 to a level of $453,100, up from $424,100 in 2017.
The Housing and Economic Recovery Act of 2008 established $417,000 as the baseline loan limit. This limit can be adjusted each year to reflect changes in the national average home price.
According to the FHFA third quarter 2017 House Price Index (HPI) report, house prices increased an average of 6.8% between the third quarters of 2016 and 2017; the baseline maximum conforming loan limit for 2018 increases by the same percentage, NAFCU explained.
FHFA noted that in areas where 115% of the local median home value exceeds the baseline loan limit, the maximum area loan limit will be higher. The new ceiling loan limit, which applies in areas with the most expensive homes, will be $679,650 (150% of $453,100) for one-unit properties in the contiguous U.S., up from $636,150, NAFCU noted in its analysis.