The federal government plans to back mortgages of more than $1 million, catching up with the dramatic rise in U.S. home prices in recent years.
The 2023 limit for mortgages on single-family homes in high-cost areas, such as parts of New York and California, will be $1.089 million, the Federal Housing Finance Agency said in a statement Tuesday. That threshold, for loans to be acquired by Fannie Mae and Freddie Mac, is up from the 2022 limit of $970,800.
For most of the U.S., the limit on Fannie and Freddie-backed loans will be $726,200, up from $647,200 this year.
