New 2023 Conforming Mortgage Loan Limits Released

By Douglas Katz – 11/29/2022

The new official loan limits for classification of conforming loans is out and it is very generous.  The Federal Housing Finance Agency (FHFA) provided a great resource to see what the limits are throughout the nation as some areas have higher limits than others.

Some considerations that this brings light.

  • If you are buying and your budget was the high end of the last set of limits, you should see if this gives you a bit more purchasing power.  Additionally, this may allow you to put down less and stay in the conforming limit where previously you may have needed to pony up a bigger downstroke.
  • If you were jumbo, you should immediately re-evaluate to see if you can shift into the conforming range and save money.  This goes without saying for anyone getting ready to purchase, but for anyone who bought in the last few months and needed to use a jumbo loan, there may be refinance opportunities to save money.
  • Sellers on the margin may have gotten an early holiday gift as this could motivate buyers looking in their range.  I would surely get with my realtor to see if this has any impact on marketing and price strategy.

This is an annual event, but this year the bump was substantial.  This was no doubt meant to counter a still very tight housing inventory and a elevated rate environment.  We’ll see if this provides a spark to get the market moving again, but it cannot hurt.

 

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