Here’s some good news for homebuyers regarding conforming loan limits.

If you’re a homebuyer in today’s market, I have great news to share. Loan limits are now up over 18% for conforming loans from Fannie Mae and Freddie Mac. In 2021, the loan limit was $822,000. As of January 2022, the limit is now $970,000. This is great news, as many buyers can now afford a larger conforming loan. That’s a loan amount difference of $148,000! This allows you to get a larger loan with easier terms than a jumbo money loan.

Additionally, interest rates have risen quite a bit in the last month. On January 15, 2020, the average interest rate was 3.84%; two years later, they’re at 3.75%. The lowest average we’ve ever seen was 2.93% in January 2021. 

This means that interest rates have gone up 0.82% since their valley last year without the Federal Reserve raising rates. They have talked about (and are expected to) raise rates three times this year, so it makes sense to lock your rate in now if you’ve been thinking about buying a home. Rates are only going to go up from here.

If you have questions about conforming loan limits, interest rates, or anything else related to real estate, don’t hesitate to reach out via phone or email. We look forward to hearing from you soon.