Conforming Loan Limit Will Rise in 2023
The Federal Housing Finance Agency (FHFA) today announced that the maximum baseline conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2023 will rise to $726,200, an increase of $79,000 from $647,200 in 2022.
The conforming loan limits are required by the Housing and Economic Recovery Act (HERA) to reflect the percentage change in the average U.S. home price during the most recent 12-month or four-quarter period ending before the time of determining the annual adjustment. In 2023, the conforming loan limit will rise 12.21% because FHFA has determined that the average U.S. home value increased by that amount between the third quarters of 2021 and 2022.
Higher loan limits will be in effect in higher-cost areas as well. The new ceiling loan limit in high-cost markets will be $1,089,300, which is 150% of $726,200. The previous ceiling was $970,800.
In its news release, FHFA said that due to rising home values, the ceiling loan limits will be higher in all but two U.S. counties or county equivalents in 2023.
A list of the 2023 maximum conforming loan limits for all counties and county-equivalent areas in the country may be found here.
Latest from NAHBNow
Workforce Development
May 12, 2025
Alabama Workforce Development Bill Passes Unanimously, Benefiting Local AcademiesThe bill allows for local funding of Home Builders Association of Alabama-recognized (HBAA) Home Builder Academies, which train potential workers on the basics of the construction industry.
Economics
May 09, 2025
Remodelers: Are Costs Hurting Your Profit Margins? Help Us Advocate for YouAs a reminder, NAHB is seeking data from remodelers to produce average profit benchmarks for the industry for the next edition of the Remodelers’ Cost of Doing Business Study.
Latest Economic News
Economics
May 09, 2025
Consumer Credit Slows in the First Quarter of 2025Consumer credit continued to rise in early 2025, but the pace of growth has slowed. Student loan balances rose year-over-year as borrowers resumed payments following the end of pandemic-era relief. However, growth remains modest.
Economics
May 08, 2025
Multifamily Developer Confidence Falls in the First QuarterMultifamily developers are starting the year in a cautious state, according to Q1 2025 results from the Multifamily Market Survey (MMS) released today by the National Association of Home Builders (NAHB). The MMS produces two separate indices.
Economics
May 07, 2025
Fed Remains on Pause with Rising UncertaintyThe Federal Reserve remained on pause with respect to rate cuts at the conclusion of its May meeting, maintaining the federal funds rate in the 4.25% to 4.5% range. Characterizing current market conditions, the central bank noted that the “unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid.” However, the Fed noted that “inflation remains somewhat elevated.”