Conforming Loan limits have increased by roughly 12 percent—from $647,200 to $726,200—for one-unit properties in most parts of the U.S. This change gives homebuyers purchasing within this price range the opportunity to qualify for a Conforming Loan instead of a Jumbo. A Conforming Loan typically comes with a lower rate and a smaller down payment.
Conforming Loan limits will also increase from $970,800 to $1,089,300 in Hawaii and Alaska. Purchase, rate-and-term refinance, and cash-out refinance are all permitted under these new limits. Conforming limits may also be higher in high-cost areas. You can view 2023 Conforming limits by county here.
Why the increase? Loan limits typically rise in response to housing market growth, ensuring that homebuyers continue to have access to affordable mortgage products. The FHFA usually updates its monetary Conforming Loan limits each year based on the results of its House Price Index (HPI) report, which reflects how much annual home prices have appreciated.