The new conforming loans limits for mortgages that can be acquired by Fannie Mae and Freddie Mac were announced this morning by the Federal Housing Finance Agency (FHFA). As expected, the changes reflect the nearly unprecedented price gains over the last year. Earlier today FHFA posted third quarter changes in its Housing Price Index (HPI). Between the third quarter of 2020 and 2021 the expanded-data index (slightly different than the regular HPI) had grown by an average of 18.05 percent. The baseline conforming limit will be higher by that same percentage.
The limit for single-family residential units in most U.S. counties, effective January 1, 2022, will be $647,200. This is an increase of $98,950 from the $548,250 limit this year. The baseline limit for properties containing two units will be $828,700 and for three-units, $1,001,650. A loan for a four-unit dwelling in most counties will be limited to $1,244,850.
For "high cost" areas, those in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the applicable loan limit will be capped at $970,800, which 150 percent of the baseline limit. For Alaska, Hawaii, Guam, and the U.S. Virgin Islands the baseline loan limit will be $970,800 for one-unit properties.
FHFA says that due to rising home values, conforming limits will increase in all but four U.S. counties or county equivalents.
A link to an Excel spreadsheet with limits for all U.S. counties is located here.