Mortgage companies Fannie Mae and Freddie Mac will raise the limits of government-backed loans in 2023, to a record level of over $1 million in some high-cost areas.
The limits are raised in response to rising home prices, in an effort to make home ownership accessible to more Americans.
The Federal Housing Finance Agency announced Tuesday that the baseline conforming loan limit, or CLL, value for one-unit properties will be $726,200, up from $647,200 in 2022.
In high-cost areas, the new limit for one-unit properties will be $1,089,300, up from $970,800 this year, and topping $1 million for the first time.
The growth in home prices has decelerated with rising interest rates, but still increased 12.21 percent, on average, between the third quarters of 2021 and 2022, the FHFA said.
