House prices have increased again over the past year, and economists are calculating how much the Fannie & Freddie conforming loan limits (CLL) might increase in 2023 and also how much the Federal Housing Administration (FHA) insured loan limits will go up. Bill McBride of The Calculated Risk Blog is watching the data for the different loan limits for different geographical areas, as well as the number of units (1 to 4 units) in those areas.
We need the house price data through September 2022 to calculate the conforming loan limit for 2023. This quarterly data will be released in late November.
Based on the current year-over-year house price change, the CLL could be close to $760,000 in 2023. However, year-over-year (YoY) house price growth is clearly slowing, and it is possible the CLL will be in the low-to-mid $700 thousand range for 2023.
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