In response to rising home prices across the nation, the Federal Housing Finance Agency has increased Fannie Mae and Freddie Mac‘s conforming loan limits for the second year in a row. In most communities in the U.S., the new loan limit for one-unit properties will be $453,100, up from $424,100, (an almost 7 percent increase over 2017). The increase will be effective for loans sold to these agencies after January 1, 2018.
The change comes after market shifts which have caused median home values to “generally increase,” according to the FHFA. Additional adjustments have been made to high-cost areas, putting the new conforming limit for these locations at $679,650.