July 4, 2022

Loan Limits Raised for Mortgages to be Acquired by the Enterprises

WASHINGTON, DC — The Federal Housing Finance Agency has announced an increase in conforming loan limits (CLLs) for mortgages to be acquired by Fannie Mae and Freddie Mac (the Enterprises) in 2022.

In most of the U.S., the 2022 CLL for one-unit properties will be $647,200, an increase of $98,950 from $548,250 in 2021, according to the FHFA.

The Housing and Economic Recovery Act of 2008 requires that the baseline CLL for the Enterprises be adjusted annually to reflect changes in the average U.S. home price. According to the latest FHFA House Price Index (HPI), house prices increased 18.05%, on average, between the third quarters of 2020 and 2021. Due to rising home values, the baseline CLL in 2022 in all but four U.S. counties or county equivalents will increase by the same percentage, the FHFA said.

“These increases are an important step to ensure that government-backed mortgages keep pace with the sharp rise in home prices over the past year,” said Robert Dietz, chief economist for the National Association of Home Builders. “Supply-side challenges, including building material bottlenecks and lot and labor shortages, will continue to place upward pressure on construction costs and home prices in 2022.”

For additional information, visit https://www.fhfa.gov/CLLs.

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