Conforming Loan Limits To Increase In 2024 To $766,550

By
Real Estate Agent with HomeSmart Real Estate BR632450000

Good news in that "conforming loan" limits for borrowers of single family homes will increase $40,350 to $766,550 in 2024 for many metro areas in the US including Phoenix and Maricopa County. The Federal Housing Finance Agency (FHFA), states that "Fannie Mae and Freddie Mac are restricted by law to purchasing single-family mortgages with origination balances below a specific amount, known as the “conforming loan limit” (CLL) value.  Loans above this amount are known as jumbo loans."

FOR IMMEDIATE RELEASE 11/28/2023 ​​​​​​​​​​​​​​Washington, D.C. –

"The Federal Housing Finance Agency (FHFA) today announced the conforming loan limit values (CLLs) for mortgages Fannie Mae and Freddie Mac (the Enterprises) will acquire in 2024. In most of the United States, the 2024 CLL value for one-unit properties will be $766,550, an increase of $40,350 from 2023."

National Conforming Loan Baseline

"The Housing and Economic Recovery Act (HERA) requires FHFA to adjust the Enterprises’ baseline CLL value each year to reflect the change in the average U.S. home price. Earlier today, FHFA published its third quarter 2023 FHF​A House Price Index® (FHFA HPI) report, which includes statistics for the increase in the average U.S. home value over the last four quarters. According to the nominal, seasonally adjusted, expanded-data FHFA HPI, house prices increased 5.56 percent, on average, between the third quarters of 2022 and 2023. Therefore, the baseline CLL in 2024 will increase by the same percentage."

Mortgage Rates Drop for the Fifth Consecutive Week
November 30, 2023 Freddie Mac Weekly Survey...

More good news on the mortgage front, per Freddie Mac, "Market sentiment has significantly shifted over the last month (declined 5 consecutive weeks ending November 30, 2023), leading to a continued decline in mortgage rates. The current trajectory of rates (dropping to 7.22% with good credit) is an encouraging development for potential homebuyers, with purchase application activity recently rising to the same level as mid-September when rates were similar to today’s levels. The modest uptick in demand over the last month signals that there will likely be more competition in a market that remains starved for inventory."

Mortgage Rate Survey December 2023

For more information on Arizona Mortgage Loans and Lenders: https://arizonahomesland.com/mortgage-loans/ A FHA loan requires a minimum 3.5% down payment, however conventional loans can have low down payments as well although a Buyer can avoid mortgage insurance with a 20% down payment.

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Jeff Masich

Broker/REALTOR®

Scottsdale including Phoenix, Tucson and Prescott metros and throughout Arizona


Buy/Sell with Arizona Homes and Land Group. Ask me, Group Leader about Metro Homes or Ranches and Large Acreage properties throughout the state.

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Comments (10)

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Jeff, my first house in 1973 was only a ranch style with a 2 car garage and I pay $23,500.  When will prices slow down.

 

Dec 05, 2023 07:56 AM
Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
The Grit and Gratitude Agent

This is good news for established property owners, but does not help first time home buyers. I bought my first new construction home in 1985 for $35,000 with one car garage on 1/3 of an acree.

Dec 05, 2023 08:56 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI the loan limits today are a far cry from when I started in this business 18+ years  ago.

Dec 05, 2023 09:58 AM
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

For sure Will Hamm house prices have gone up and so have the conforming loan limits. The good think buyers can get low down payment loans 3% or 5% conventional loans within the loan limits.

Dec 05, 2023 07:36 PM
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

They have haven't they George Souto as those loan limits increase with the average price of homes and the increase in a buyers nest egg.

 

Dec 05, 2023 07:37 PM
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Yes Leanne Smith conforming mortgage loan  limits have increased with home values. The good news for buyers is they can get low down payment conforming loans if the loan for their next home is within the increased limits. For home buyers that are first time buyers they are often going for a less expensive home than the loan limit unless they are getting hep from the family.

Dec 05, 2023 07:39 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI  loved your post, did you see my last post about our Conforming Loans... I believe it is about 45% higher than your area:)Endre

Dec 05, 2023 10:31 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI - WOW! That is almost double for Comforming Loans! I hope all the people who qualify will get what they are asking for and that the underdogs just starting out will be blessed with good fortune too. 

Dec 06, 2023 06:12 AM
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

For sure Endre Barath, Jr. there are premium areas around the US like LA that has those higher conforming loan limits than the majority of the US.

Dec 06, 2023 12:19 PM
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Hi Patricia Feager, MBA, CRS, GRI,MRP yes, the 2024 single family home "conforming loan limit of $766K is about double the 20 years ago (in 2004) limit which was $333K at that time. The $766K  loan limit in 2024 is up $40K from last year (2023). Note, there are even higher loan limits for 2, 3, and 4 family homes. Jeff

Dec 06, 2023 12:25 PM