FOR IMMEDIATE RELEASE: November 26, 2024
Washington, D.C. – The Housing Policy Council (HPC) issued the following statement today in response to the Federal Housing Finance Agency’s announcement of increased conforming loan limits:
“FHFA announced today that in 2025, Fannie Mae and Freddie Mac will be able to purchase mortgages of up to $1,209,750 in certain high-cost areas in the United States and $806,500 in the rest of the country.
This continued expansion of federal backing for mortgage finance exacerbates the country’s housing affordability challenges.
After a lengthy period where loan limits remained unchanged during and after the Great Financial Crisis, the subsequent rapid rise in house prices has fueled a growth in loan limits that exceeds the growth in household income. As a result, more and more upper-end borrowers have access to federal support for financing mortgages, which puts upward pressure on house prices. At the same time, this growth in federal support in the mortgage market diminishes the remaining portion of the market dependent solely on private capital.
As we have warned for the last three years, the question of the appropriate role of the government in the housing finance system has gone unanswered for far too long. This latest increase in conforming loan limits is a reminder to the incoming Trump Administration that evaluating the proper role and scope of federal involvement in mortgage finance remains on the policy agenda. The Housing Policy Council urges the 119th Congress and the Trump Administration to take up this question soon.”
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About HPC: The Housing Policy Council is a trade association comprised of the leading national mortgage lenders and servicers; mortgage, hazard, and title insurers; and technology and data companies. Our interest is in the safety and soundness of the housing finance system, the equitable and consistent regulatory treatment of all market participants, and the promotion of lending practices that create sustainable homeownership opportunities in support of vibrant communities and long-term wealth-building for families. For more information, visit www.housingpolicycouncil.org
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HPC