FHFA Raises Conforming Loan Limits to $806,500 for 2025
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 2025 will rise to $806,500 — an increase of $39,950, or 5.2%, from 2024.
The conforming loan limits are required by the Housing and Economic Recovery Act 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 2025, the conforming loan limit will rise 5.21% because FHFA has determined that the average U.S. home value increased by that amount between the third quarters of 2023 and 2024.
Higher loan limits will be in effect in higher-cost areas as well. The new ceiling loan limit in high-cost markets will be $1,209,750, which is 150% of $806,500. The previous ceiling was $1,149,825.
In its news release, FHFA said that because of rising home values, the ceiling loan limits will be higher in all but six U.S. counties or county equivalents in 2025.
Fannie Mae and Freddie Mac cannot buy mortgages above the conforming loan limit. Any mortgage over that amount is considered a jumbo loan and subject to higher interest rates.
The increase in loan limits for 2025 means that more mortgages will be bought by Fannie and Freddie, which will make it easier for home buyers to qualify for and close their loans. For home builders, it means their clients will find more mortgage options outside of the world of jumbo loans, and it could offer an opportunity for home builders to examine their pricing.
View a list of the 2025 maximum conforming loan limits for all counties and county-equivalent areas in the country.
Latest from NAHBNow
Jun 11, 2025
More than 1,000 Housing Professionals Urge Congress to Act on Key Affordability IssuesMore than 1,000 builders, remodelers and associates engaged in all facets of the residential construction industry trekked to Capitol Hill today to urge their lawmakers to support policies that will help builders unleash the housing market by allowing them to increase the production of quality, affordable housing.
Jun 10, 2025
Confronting the Challenges of “Not in My Backyard (NIMBY)” AttitudesNIMBY or NIMBYism is a common term that stands for “Not In My Backyard.” NIMBYism often arises during the planning process for housing developments. NAHB has developed a new resource to help combat NIMBYism by highlighting the value new housing can add to local communities.
Latest Economic News
Jun 11, 2025
Inflation Up Slightly in MayDespite inflationary pressure from tariffs, inflation in May rose slightly but came in softer than expected. The Consumer Price Index increased from 2.3% in April to 2.4% in May year-over-year, according to the Bureau of Labor Statistics’ report.
Jun 10, 2025
House Price Appreciation by State and Metro Area: First Quarter 2025House price growth slowed in the first quarter of 2025, partly due to a decline in demand and an increase in supply. Persistent high mortgage rates and increased inventory combined to ease upward pressure on house prices. These factors signaled a cooling market, following rapid gains seen in previous years.
Jun 09, 2025
AI’s Role in Reshaping Employment: From Theory to Home Building Sector ImpactsThe rapid rise of artificial intelligence (AI), particularly machine learning and generative AI (GenAI), is reshaping industries, creating new economic opportunities, and raising critical questions about its long-term impact on jobs and economic growth.