FHFA Increases CLL for 2024

The Federal Housing Finance Agency (FHFA) has announced an increase in the conforming loan limit values (CLLs) for 2024. The new baseline CLL for one-unit properties in most of the United States will be $766,550, marking a significant increase of $40,350 from the 2023 limit. This adjustment is in response to the average U.S. home price increase, as mandated by the Housing and Economic Recovery Act (HERA).

Key Points of the Announcement:

1. National Baseline Adjustment: Based on the FHFA House Price Index report, which showed an average increase of 5.56% in house prices from the third quarter of 2022 to the third quarter of 2023, the baseline CLL has been adjusted upwards by the same percentage for 2024.
2. High-Cost Areas: In regions where 115% of the local median home value exceeds the baseline CLL, the loan limits will be higher. The new ceiling for these high-cost areas is set at $1,149,825 for one-unit properties, which is 150% of the baseline limit.
3. Special Provisions for Certain Areas: Alaska, Hawaii, Guam, and the U.S. Virgin Islands have different loan limits due to special statutory provisions. In these areas, the baseline loan limits for one-unit properties will also be $1,149,825.
4. Widespread Increase: Reflecting the rise in home values, the CLL values will increase in all but five U.S. counties or county equivalents.

This increase in conforming loan limits reflects the ongoing trend of rising home values and aims to provide borrowers with greater access to home financing options, particularly in high-cost areas. The adjustment is a significant move by the FHFA to accommodate the changing dynamics of the U.S. housing market.

You can read the full News Release on the FHFA website by clicking here.