The Housing and Economic Recovery Act (HERA) requires that the baseline Conforming Loan Limit be adjusted each year to reflect the change in the average U.S. home price.
FHFA, Federal Housing Finance Agency, published its third quarter 2021 FHFA House Price Index® (FHFA HPI®) report, which includes statistics for the increase in the average U.S. home value over the last four quarters.
According to the nominal, seasonally adjusted, expanded-data FHFA HPI, house prices increased 18.05 percent, on average, between the third quarters of 2020 and 2021.
Therefore, the baseline Conforming Loan Limit in 2022 will increase by the same percentage.
What does this mean for you?
Well, there're several ways it could make a difference.
Let's chat and see how it impacts you :-)