US Federal Housing Finance Agency Announces Higher Conforming Loan Limit Values for 2024

The US Federal Housing Finance Agency (FHFA) announced on Tuesday (11-28-23) the conforming loan limit values (CLLs) for mortgages Fannie Mae and Freddie Mac (the Enterprises) will acquire in 2024. According to the press release, in most of the US, the 2024 CLL value for one-unit properties will be $766,550, an increase of $40,350 from 2023.

The press release notes that The Housing and Economic Recovery Act (HERA) requires FHFA to adjust the Enterprises’ baseline CLL value each year to reflect the change in the average US home price. Earlier on Tuesday, FHFA published its Q3 FHFA House Price Index® (HPI) report, which includes statistics for the increase in the average home value over the last four quarters. According to the nominal, seasonally adjusted, expanded-data HPI, house prices increased 5.56%, on average, between 2022Q3 and 2023Q3. Therefore, the baseline CLL in 2024 will increase by the same percentage.

FHFA further explained that in 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 US Virgin Islands. In these areas, the baseline loan limits will be $1,149,825 for one-unit properties, FHFA said.

Due to rising home values, the CLL values will be higher in all but five US counties or county equivalents.