The Federal Housing Finance Agency is increasing the size of home loans that the government can guarantee against default, allowing Fannie Mae and Freddie Mac to acquire loans up to $832,750 on single-family homes in most of the country starting next year, a 3.3% increase from 2025.

FHFA oversees Fannie Mae and Freddie Mac, setting limits on conforming loans they can buy based on U.S. home values, which have been rising slowly this year. The U.S. housing market has been sluggish since 2022, with sales of previously occupied homes sinking to a 30-year low last year.

Sales have remained flat in 2025, despite a boost in the fall as mortgage rates dropped. The FHFA House Price Index shows a 3.3% increase in U.S. home prices in the July-September quarter compared to a year earlier. The 2026 conforming loan limit will apply to most of the country, with higher limits for certain states and counties with high median home values.

For example, the conforming loan limit for single-family homes in Los Angeles and New York counties will be $1,249,125 next year.

Read more at Yahoo Finance: Federal agency boosts size of most single-family loans the government can guarantee to $832,750