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.