After not increasing the maximum conforming loan limits on mortgages to be acquired by Fannie Mae and Freddie Mac for 10 years, the Federal Housing Finance Agency has now increased the conforming loan limit for the third year in a row. On November 27th, the FHFA announced that it is increasing the conforming loan limit for Fannie and Freddie mortgages in nearly every part of the U.S. According the FHFA, the conforming loan limits will rise from 2018’s level of $453,100 to $484,350 for 2019. That’s an increase of 6.9%! As stated above, this marks the third straight year that the FHFA has increased the conforming loan limits after not increasing them for a period of 10 years (from 2006 to 2016). Back in 2016, the conforming loan limits were increased from $417,000 to $424,100. Then, in 2018, conforming mortgage loan limits were raised from $424,100 to $453,100. And now, the FHFA is doing it again, increasing the loan limit from $453,100 to $484,350 for 2019. The conforming loan limits for Fannie and Freddie are determined by the Housing and Economic Recovery Act of 2008, which established the baseline loan limit at $417,000 and mandated that, after a period of price declines, the baseline loan limit cannot rise again until home prices return to pre-decline levels. But, according to the FHFA, home prices are still on the rise. The FHFA’s third quarter 2018 House Price Index report, showed that home prices rose 6.9%, on average, between the third quarters of 2017 and 2018. Therefore, the maximum conforming loan limit in 2019 will increase by the same percentage to $484,350. The conforming mortgage loan limit in Lee County, Collier County and Charlotte county will be $484,350.
