FHFA Conforming Loan Limits Increased for 2019

The Federal Housing Finance Agency (FHFA) announced Tuesday its maximum conforming loan limits for mortgages acquired by government-sponsored enterprises Fannie Mae and Freddie Mac will increase in 2019 to a level of $484,350, an increase from $453,100 in 2018.

The Housing and Economic Recovery Act of 2008 established $417,000 as the baseline loan limit. This limit can be adjusted each year to reflect changes in the national average home price.

According to the FHFA third quarter 2018 House Price Index (HPI) report, house prices increased an average of 6.9 percent between the third quarters of 2017 and 2018; the baseline maximum conforming loan limit for 2019 increases by the same percentage.

FHFA noted that in areas where 115 percent of the local median home value exceeds the baseline loan limit, the maximum area loan limit will be higher. The new ceiling loan limit, which applies in areas with the most expensive homes, will be $726,525 (150 percent of $484,350) for one-unit properties in the contiguous U.S.