The Federal Housing Finance Agency (FHFA) has set a new baseline conforming loan limit of $806,500 for one-unit properties in 2025, authorizing Fannie Mae and Freddie Mac to purchase mortgages up to this amount.

The new limit reflects a 5.2% increase over the current $766,550 cap for 2024, aligning with home price trends. The adjustment indicates a weaker housing market this year, driven by still-elevated mortgage rates. By comparison, the 2024 limit rose by 5.5%.

Raising the conforming loan limit helps buyers finance higher-priced one-unit homes more efficiently, especially as affordability remains challenging. However, these increases also spark details ⇒

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