The 2024 conforming loan limits for Fannie Mae and Freddie Mac are heading up!

I want to provide a quick update for you on the new loan limits for 2024 for Fannie Mae and Freddie Mac. Each year the FHFA (Federal Housing Finance Agency) sets this limit for the upcoming year and while they haven't officially announced what it will be for 2024 the information that they base it upon has been released. Each year they look at the year-over-year change in third quarter housing data (the Housing Price Index), they'll compare 2022 third quarter to 2023 third quarter. They'll compare the change in home prices and then determine how much to change loan limit for the upcoming year.

If we take a look at that data and do the math it looks like a 3.9% increase in home prices from 3rd quarter 2022 to 3rd quarter 2023. If we extrapolate that out to calculate a loan limit it looks like we're about $754,500 for a new loan limit for 2024. So be prepared for an increase in the Fannie Mae and Freddie Mac loan limits.

In fact, because of that expected increase, The Kristoff Team is already able to originate and lock loans based on a maximum loan amount up to $750,000. We're expecting at least a $750,000 maximum loan amount for Fannie Mae and Freddie Mac. We can lock those loans today!

Stay tuned, in the upcoming weeks we're going to hear the official word from the FHFA for what the 2024 conforming loan limits are going to be.