The Federal Housing Finance Agency announced that mortgage giants Fannie Mae and Freddie Mac will increase their lending limits for 2022 as a result of higher home prices nationwide. Currently, the maximum conforming loan limit for single-unit properties is $548,250. This will increase to $647,200 this year. The new loan limits took effect January 1.
Loan limits are based on median home prices in a given metropolitan area. Higher limits assist buyers by providing access to better financing terms on a new mortgage or refinance. Loans that exceed these limits are generally referred to as jumbo or non-conforming loans.
In San Diego, where home prices are higher than the national average, the 2022 loan limit will be $879,750, among the highest in the nation.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.