The Federal Housing Finance Agency announced today the 2023 conforming loan limits (CLLs) for mortgages that will be acquired by Fannie Mae and Freddie Mac in 2023. In most of the U.S., the new limits will be $726,200 for one-unit properties, and limits in “high-cost” areas where 115% of the local median home value exceed the baseline conforming limit will be $1,089,300.
The increase in the conforming loan limit is based on the change in the average U.S. home price. According to the third quarter 2022 FHFA House Price Index® report, house prices increased on average 12.21% between the third quarters of 2021 and 2022, which is the same increase in the baseline CCL for 2023.
Because of the rising home values, the CLLs will be higher in all but two U.S. counties or county equivalents. Here's a map showing the conforming loan limits across the U.S. The new conforming loan limits will go into effect on January 1, 2023.
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