The Federal Finance Housing Agency announced its newest conforming loan limits, and they are increasing by more than $25,000. Beginning January 2020, the increase of conforming loan limits for the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) are more than $510,000, which is an increase from $484,350 in 2019. These figures are for one-unit property purchases.

This is good news for borrowers who live in areas where the local median home value is higher than the baseline conforming loan limit, as they are now able to see a higher maximum loan limit.

There were no conforming loan limit increases from 2006 to 2016 and 2017, 2018, and 2019 saw only small increases, so this new conforming loan limit is a boon to borrowers. Many homebuyers can have safe access to affordable mortgages insured with Fannie Mae or Freddie Mac. For homeowners who qualify for a home loan, the mortgages are easier to manage and can help to give borrowers a sense of relief that they can afford to buy a new home without a significant financial struggle.

The new conforming loan limit shows that the United States is trying to deal with and manage the rising cost of housing, and the National Association of Realtors has been advocating to raise the conforming loan limits.

Overall, the conforming loan limits are great news for the economy, and it's a good time to start inquiring about a new home loan.

Source: Federal Finance Housing Agency