Freddie Mac, Fannie Mae backing bigger home loans in 2025
Published On Nov 26, 2024, 10:15 PM
In 2025, Freddie Mac and Fannie Mae will increase the conforming loan limit for mortgages by 5.2%, raising it to $806,500. This is an almost $40,000 increase from 2024. For high-cost areas, the loan limit can go up to $1,209,750. This change is attributed to the continued rise in U.S. housing prices, which have surged 5.21% over the last year, creating significant affordability challenges for homebuyers. The average 30-year fixed mortgage rate has also risen, contributing to the struggles in the housing market.
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The increase in conforming loan limits is likely to positively impact the housing market by making it easier for buyers to secure financing for homes at higher price points. This could spur more home purchases in the market and positively influence companies involved in real estate and mortgage lending. However, the ongoing high mortgage rates may offset some of this benefit, creating a complicated scenario for real estate investments.
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