Mortgage lenders are proactively raising their conforming loan limits to $802,650 ahead of the FHFA's anticipated announcement in November, indicating market confidence.
The new loan limits reflect a 4.71% increase over this year's figure, highlighting the upward trend in housing prices as the conforming limit has risen significantly since 2020.
The Housing and Economic Recovery Act of 2008 mandated that loan limits could only rise when home prices returned to pre-recession levels, a condition met in 2016.
Since 2020, the conforming loan limit has increased 50.1%, a response to sharply rising home prices post-pandemic, reinforcing lender confidence in the market.
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