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
Jun 20, 2025
The New American Home 2026: Innovation Meets ImpactThe New American Home 2026, the official show home of the 2026 NAHB International Builders’ Show® in Orlando, is already drawing industry buzz for its distinctive design and rare structural features.
Jun 19, 2025
Award-Winning Advice: Surround Yourself With Good PeopleIn the latest edition of Pro Remodeler, 2024 Remodeler of the Year Mike Pressgrove shares advice from his career.
Latest Economic News
Jun 20, 2025
Single-family Construction Loan Volume GrowsCredit conditions for builders and developers eased in the first quarter of 2025 as the level of outstanding 1-4 family residential construction loans rose for the first time in two years, according to data released by FDIC.
Jun 18, 2025
The Fed Pause ContinuesReflecting most forecasters’ expectations for the June FOMC meeting, the Federal Reserve continued its post-2024 pause for federal funds rate cuts, retaining a target rate of 4.5% to 4.25%.
Jun 18, 2025
Sharp Drop in Multifamily Production Brings Overall Housing Starts DownA sharp decline in multifamily production pushed overall housing starts down in May, while single-family output was essentially flat due to economic and tariff uncertainty along with elevated interest rates.