WASHINGTON – the Federal Housing Finance Agency (FHFA) announcedโ Tuesday โฃit is raising the maximum size of single-family home loans itโ will guarantee, reflecting continued โฃincreases in U.S. home values.โ Beginningโข in 2026, Fannie Maeโ and Freddieโ Mac will be โคable to purchaseโค mortgages up to $832,750 nationwide.
The โnew โขconforming loanโ limit represents a 3.3% increase fromโ the 2025 level, according to the FHFA. This โคadjustment ensures the limits align with evolvingโ housing market โconditions.
Fannieโฃ Mae and Freddieโ Mac playโ aโค critical role in the mortgage market byโค 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 theseโข “conforming” loans. Mortgages exceeding these limits are โconsidered “jumbo loans” and typically carry higher interest rates.
The FHFA adjusts โขthese limits annually based โon changes in the House Price Index, โwhich showed a 3.3% increase in U.S.home โขprices during โthe July-September quarterโ compared to the previous year.
While the national limit will be $832,750, the FHFA allows for higher limits in โcertain โฃhigh-cost areas, including Alaska,โ Hawaii, and countiesโฃ where โthe local medianโ home value exceeds โtwice theโข standard โconforming loanโ limit. For instance, theโ limit in Los Angeles and New York counties will be $1,249,125 starting next year.
The โฃmove comes as the housing market continues to navigate a slowdown that โคbegan in 2022 with rising mortgageโ rates. despite โขa recent dip in rates โthis fall,sales of existingโ homes remain sluggish,with 2025โค salesโ through October runningโฃ roughly flat compared to theโ previous year’s already depressed levels.