Currently Reading

Conforming Loans Could Replace Jumbo Loans in 2022

Advertisement
Financials

Conforming Loans Could Replace Jumbo Loans in 2022

The Federal Housing Finance Agency is stepping in to help struggling home buyers


November 18, 2021
Housing loan paperwork
Image: Stock.adobe.com

In 2022, the Federal Housing Finance Agency plans to raise the conforming loan limit for single-family home mortgages purchased by Fannie Mae and Freddie Mac to nearly $1 million in some areas to help homebuyers keep up with surging real estate prices, SmartAsset reports. 

By increasing the conforming loan limit by 18.5%, the FHFA is helping buyers eliminate the need for a jumbo loan when purchasing homes in high-cost areas. The proposal would signal the largest single-year increase on record, fitting for a housing market with equally historic prices. 

The Federal Housing Finance Agency will raise the conforming loan limit for single-family home mortgages purchased by Fannie Mae and Freddie Mac to approximately $650,000 in most parts of the country and nearly $1 million in high-cost areas like San Francisco, Seattle and New York, The Wall Street Journal reported.

According to the Federal Reserve Bank of St. Louis, the median home price in the U.S. increased nearly 20% over the last year, rising to $404,700 in the third quarter of 2021.

The Federal Housing Finance Agency is expected to raise the conforming loan limits by a whopping 18.5% in 2022, according to The Wall Street Journal. As a result, Fannie Mae and Freddie Mac would start backing mortgages of almost $1 million in certain high-cost areas, far above the current $822,375 limit in the priciest markets. The increase would be the largest single-year hike on record. While the potential move is aimed at helping homebuyers keep pace with rising home prices, it may also aid retirees looking to upsize into larger or more expensive homes.

Read More

Related Stories

Financials

Mortgage Rates Plummet After News of Omicron Variant

After a major decline in refinance activity with high mortgage rates, a new COVID-19 variant could cause a swift reversal

Financials

Rising Home Prices Outpace National Household Incomes

High home prices and a drop in median household income are creating a less affordable market for buyers

Economics

Slow Economic Growth Reported for the Third Quarter of 2021

Real GDP growth rate sees yet another negative gain

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.