The baseline conforming loan limit (CLL) for most U.S. mortgages backed by Freddie Mac and Fannie Mae in 2024 has increased from $726,200 to $766,550, an increase of $40,350 or 5.56% from 2023, according to the annual release by the Federal Housing Finance Agency (FHFA) this past Tuesday.
The Housing and Economic Recovery Act (HERA) requires FHFA to adjust Fannie and Freddie’s baseline CLL value each year to reflect the change in the average U.S. home price. FHFA also published its third quarter 2023 FHFA House Price Index® (FHFA HPI) report Tuesday, which includes statistics for the increase in the average U.S. home value over the last four quarters.
“According to the nominal, seasonally adjusted, expanded-data FHFA HPI, house prices increased 5.56%, on average, between the third quarters of 2022 and 2023. Therefore, the baseline CLL in 2024 will increase by the same percentage,” the release stated.
More key highlights from the FHFA announcement:
- For areas in which 115% of the local median home value exceeds the baseline conforming loan limit value, the applicable loan limit will be higher than the baseline loan limit.
- HERA establishes the high-cost area limit in those areas as a multiple of the area median home value, while setting the ceiling at 150% of the baseline limit.
- Median home values generally increased in high-cost areas in 2023, which increased their CLL values. The new ceiling loan limit for one-unit properties will be $1,149,825, which is 150% of $766,550.
- Special statutory provisions establish different loan limits for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limits will be $1,149,825 for one-unit properties.
Due to rising home values, the CLL values will be higher in all but five U.S. counties or county equivalents.
More resources
- List of 2024 conforming loan limits for all counties and county-equivalent areas in the United States.
- A map showing the 2024 conforming loan limits across the United States.
For more information, visit https://www.fhfa.gov/CLL.
