The Federal Housing Finance Agency (FHFA) has announced new conforming loan limits for mortgages eligible for purchase in 2026 by its regulated entities Fannie Mae and Freddie Mac.
In most areas of the U.S., the cap for one-unit properties will be $832,750 next year, an increase of $26,250 from 2025.
The Housing and Economic Recovery Act, signed into law in 2008 by President George W. Bush in response to the 2008 financial crisis, requires the FHFA to annually update the limits for Fannie and Freddie to reflect changes in average home prices.
National home prices remained flat from August to September while rising just 0.2% between the second and third quarters, according to FHFA figures published Tuesday.
House prices increased an average of 3.26% on a nominal, seasonally adjusted basis between the third quarters of 2024 and 2025, leading the conforming loan limit for Fannie and Freddie to rise by the same percentage for 2026.
Rising home values drove loan limits higher in all but 32 of more than 3,000 U.S. counties and county equivalents, the FHFA says.
In high-cost markets — defined as those where the local median home value exceeds the baseline conforming loan limit by at least 115% — the loan cap for one-unit properties in 2026 will be $1,249,125, or 150% of the baseline $832,750.
With regional variations, national home price appreciation has experienced a sustained cooling trend in 2025.
Slower rent and home price growth has signaled easing housing inflation after both surged during the COVID-19 pandemic, boosted by stimulative fiscal and monetary policies and longstanding inventory shortages.
For four consecutive months, however, economy-wide inflation has outpaced home price appreciation, eroding household wealth in real terms.
This week’s update to the S&P Cotality Case-Shiller U.S. National Home Price Index showed a 1.3% non-seasonally adjusted annual gain in national home prices in September. All 20 metros tracked as part of the 20-city component index declined monthly.
