WASHINGTON – the Federal Housing Finance Agency (FHFA) announced Tuesday it is raising the maximum size of single-family home loans it will guarantee, reflecting continued increases in U.S. home values. Beginning in 2026, Fannie Mae and Freddie Mac will be able to purchase mortgages up to $832,750 nationwide.
The new conforming loan limit represents a 3.3% increase from the 2025 level, according to the FHFA. This adjustment ensures the limits align with evolving housing market conditions.
Fannie Mae and Freddie Mac play a critical role in the mortgage market by purchasing loans from lenders, bundling them into securities, and guaranteeing them against default – making credit more accessible to homebuyers. The FHFA sets limits on the size of these “conforming” loans. Mortgages exceeding these limits are considered “jumbo loans” and typically carry higher interest rates.
The FHFA adjusts these limits annually based on changes in the House Price Index, which showed a 3.3% increase in U.S.home prices during the July-September quarter compared to the previous year.
While the national limit will be $832,750, the FHFA allows for higher limits in certain high-cost areas, including Alaska, Hawaii, and counties where the local median home value exceeds twice the standard conforming loan limit. For instance, the limit in Los Angeles and New York counties will be $1,249,125 starting next year.
The move comes as the housing market continues to navigate a slowdown that began in 2022 with rising mortgage rates. despite a recent dip in rates this fall,sales of existing homes remain sluggish,with 2025 sales through October running roughly flat compared to the previous year’s already depressed levels.
