On November 26, the Federal Housing Finance Agency (FHFA) announced that it would be increasing the conforming loan limits on mortgages to be acquired by Fannie Mae and Freddie Mac for the fourth consecutive year. In 2020, the maximum conforming loan limit for one-unit properties will be $510,400, an increase from $484,350 in 2019. The FHFA has also set a 2020 maximum figure of $765,600 for areas that have “higher-than-average” home values. This is up from 2019’s figure of $726,525. According to FHFA’s third quarter 2019 Housing Price Index (HPI) report, home prices increased by an average of 5.38% between the third quarters of 2018 and 2019, causing them to increase the baseline maximum conforming loan limit by the same percentage.

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