Nationally and some Florida Cities See Jump in Active Listings

Leave a comment
new home owners receiving keys

courtneyk, iStock, Getty Images
MARCH 18, 2024

In Florida and nationwide, the housing supply is rebounding as sellers get used to elevated mortgage rates and the lock-in effect eases, Redfin found.

MIAMI – Active listings, or the total supply of homes for sale, in Cape Coral, North Port and Fort Lauderdale saw the biggest jump in the nation in February, the real estate brokerage firm Redfin reported. Nationwide, active listings climbed 0.8% from a month earlier on a seasonally adjusted basis and were little changed (-0.1%) from a year earlier — the smallest annual decline in months.

Nationally, new listings jumped 3.8% month over month on a seasonally adjusted basis in February to the highest level since September 2022. They were up 14.8% year over year, the largest annual gain since May 2021. In Florida, condo listings were the driving force contributing to the jump in supply amid a surge in HOA and insurance fees.

“The housing market is nothing like it was two years ago during the pandemic homebuying frenzy, but it’s better than it was last year. It’s coming back,” said David Palmer, a Redfin agent in Seattle. “Sellers who were on the fence in 2023 are now listing. They’re more used to elevated rates now. There still aren’t enough listings to quench pent-up buyer demand, but it’s getting better.”

Nationwide, housing supply is on the rise because the “lock-in effect” is easing; eventually, homeowners who have been holding on to their ultra-low mortgage rates simply have to move.

“February was a mixed bag for the housing market and the economy,” said Redfin Economics Research Lead Chen Zhao. “Housing supply is finally starting to recover in a meaningful way, which is great news for buyers who for months have been competing for a tiny pool of homes for sale. Still, many house hunters are hesitant to pull the trigger because mortgage rates and home prices remain elevated.”

Mortgage-purchase applications slid in February as mortgage rates ticked back up after dropping in December. The average 30-year-fixed mortgage rate was 6.78% in February up from 6.64% in January.

At the same time, prices continue to rise because, despite the recent uptick in listings, there’s still not enough supply to meet demand, Redfin said. Both new listings and active listings remained far below pre-pandemic levels in February.

“If you price your home reasonably, buyers will show up. If you don’t, buyers will wait for you to drop the price,” Palmer said. “I recently listed an estate sale fixer upper for $550,000 and it got 14 offers, sold for $75,000 over the asking price and the buyer waived every contingency.”

read full article

© 2024 Florida Realtors®

Leave a comment
Fannie Mae building sign

Courtesy Fannie Mae

JANUARY 22, 2024

Fannie Mae: 2024 Mortgage Rates to Dip Below 6%

By Amy Connolly

“Overall, we expect 2024 to be a better year than 2023 for homebuyer affordability and the mortgage industry,” Fannie Mae’s chief economist said.

WASHINGTON – The housing market will begin a gradual return to a “more normal balance” in 2024, and mortgage rates are expected to end the year below 6%, Fannie Mae analysts said.

Fannie Mae’s Economic and Strategic Research (ESR) Group said the lower rate environment should boost refinance volumes, which are already on the upswing. Lower rates are also likely to loosen the so-called lock-in effect that’s had a stronghold on the market.

“In fact, the ESR Group expects the annualized pace of existing home sales to move up to 4.5 million units by the fourth quarter of 2024, compared to 3.8 million in Q4 2023,” Fannie Mae analysts said in the January report. “However, a full recovery to the pre-pandemic sales rate is expected to take years, as housing affordability remains stretched extremely thin by historical standards relative to household incomes.”

At the same time, housing supply shortages and affordability constraints will continue to bolster the market for new single-family homes, with 2024 starts and new home sales forecast to top 2023 levels.

The ESR Group also said home prices are expected to rise 3.2% over the year, compared to 7.1% in 2023. While the latest forecast continues to project a slowdown in economic growth in 2024, the ESR Group anticipates a brighter economic backdrop compared to previous months, replacing its call for a modest recession with positive-but-below-trend growth in 2024.

The ESR Group noted the rapid recent easing in financial conditions, the Federal Reserve’s December meeting and the solid, upward trend in real personal income growth in October and November as positive impulses for growth over the coming quarters. But, the group said, the economy still faces a higher-than-normal risk of recession.

“Inflation’s decline and the resultant Fed pivot to signaling future rate cuts rates lead us to believe that home sales and mortgage originations likely bottomed out in the second half of 2023 and that a gradual improvement is now underway,” Doug Duncan, Fannie Mae senior vice president and chief economist, said.

“We expect mortgage rates to dip below 6% by year-end 2024 and for homebuilders to continue to add new supply, both of which should aid affordability. Additionally, the decline in mortgage rates is likely to push refinancing volumes upward, along with some pickup in purchase financing. However, even at less than 6 percent, we think rates will still have a significant way to go in order to meaningfully reduce the ‘lock-in effect’ experienced by homeowners who refinanced or bought during the pandemic. Overall, we expect 2024 to be a better year than 2023 for homebuyer affordability and the mortgage industry.”

© 2024 Florida Realtors®

Average Long-Term Mortgage Rates Dip for 9th Straight Week

Leave a comment
calculator with key on keyring with house on paperwork that says mortgage

DECEMBER 29, 2023 By Matt Ott

Freddie Mac says mortgage rates slid to the lowest level since May, “economy remains on firm ground with solid growth.”

WASHINGTON (AP) – The average long-term U.S. mortgage rate retreated for the ninth week to reach its lowest level since May.

The average rate on a 30-year mortgage dipped to 6.61% from 6.67% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.42%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also inched down this week, with the average rate falling to 5.93% from 5.95% last week. A year ago, it averaged 5.68%, Freddie Mac said.

“Heading into the new year, the economy remains on firm ground with solid growth, a tight labor market, decelerating inflation, and a nascent rebound in the housing market,” Sam Khater, Freddie Mac’s chief economist.

Mortgage rates have been easing since late October, when the average rate on a 30-year home loan reached 7.79%, the highest level since late 2000.

The decline has tracked the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing loans. The yield, which in mid-October surged to its highest level since 2007, has been falling on hopes that inflation has cooled enough for the Federal Reserve to shift to cutting interest rates after yanking them dramatically higher since March of 2022.

The Fed has opted to not move rates at its last three meetings, which has also given financial markets a boost.

Investors’ expectations for future inflation, global demand for U.S. Treasurys and what the Fed does with its benchmark federal funds rate can influence rates on home loans.

The sharp run-up in mortgage rates that began early last year has pushed up borrowing costs on home loans, reducing how much would-be homebuyers can afford even as home prices have kept climbing due to a stubbornly low supply of properties on the market. That’s weighed on sales of previously occupied U.S. homes, which are down 19.3% through the first 11 months 2023.

Despite the recent decline, the average rate on a 30-year home loan remains sharply higher than just two years ago, when it was 3.11%. The large gap between rates now and then contributes to the low inventory of homes for sale by discouraging homeowners who locked in rock-bottom rates two years ago from selling.

Some housing economists are forecasting that home sales will increase next year, assuming that mortgage rates ease further.

© 2023 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

Latest Data Shows Home Prices, Rates May Improve

Leave a comment
Bar chart with arrows and houses

NOVEMBER 17, 2023

Freddie Mac Chief Economist: “New data indicate inflationary pressures are receding” – which, along with lower mortgage rates, may lure more homebuyers into the market.

JONESBORO, Ga. – Mortgage rates have fallen for three straight weeks, with the 30-year fixed rate averaging 7.44% Thursday, down from 7.5% a week earlier, according to Freddie Mac.

But the rate remains well above last year’s level – 6.61%.

Why did the rate go down this week? “New data indicate that inflationary pressures are receding,” said Sam Khater, Freddie Mac’s chief economist.

The government reported Nov. 14 that consumer prices climbed 3.2% in the 12 months ended in October, decelerating from 3.7% in September.

“The combination of continued economic strength, lower inflation and lower mortgage rates should likely bring more potential homebuyers into the market,” Khater said.

Housing sales slump

But so far this year, high mortgage rates have stifled sales.

Existing-home sales slid 2% in September from August, according to the National Association of Realtors (NAR). Sales retreated 15.4% from a year ago.

“As has been the case throughout this year, limited inventory and low housing affordability continue to hamper home sales,” said NAR Chief Economist Lawrence Yun.

But with inventory limited, demand has been strong enough, despite the mortgage rate increase, to push home prices higher. The median existing-home price registered $394,300 in September, up 2.8% from $383,500 a year earlier.

“Lack of inventory is providing the support for high prices, but it’s also making it super difficult for first-time buyers to enter the housing market,” Yun noted.

Yun expects the depressed state of sales to last through year-end, with home sales dropping 18% for 2023 as a whole. That comes after a 17% decline last year.

Light at the end of the tunnel?

But things are starting to look up on the supply side. The inventory of unsold existing homes climbed 2.7% in September from August to 1.13 million. That’s the equivalent of 3.4 months’ supply at the current monthly sales pace. Six months is typically considered a balanced market.

“Builders are back on their feet, up 5% in newly constructed home sales year to date,” Yun said. “Builders can simply create inventory. In a housing shortage environment, builders are really benefiting.”

And mortgage rates may have topped out. Many economists believe inflation is falling enough to keep the Federal Reserve from raising rates again.

“I believe we’ve already reached the peak in terms of interest rates,” Yun said. “The question is when are rates going to come down?”

He forecast mortgage rates will slide to 6%-7% by the spring buying season and anticipates that more sellers will then enter the market.

Still, if you’re a renter who wants to buy, you might want to hold off until housing prices correct. For many, mortgage payments are just too high for a house to be affordable. The rule of thumb is that no more than 28% of your income should be needed to pay a mortgage.

Copyright © 2023 Clayton News Daily. All rights reserved.

Home prices ticked up in April as market faced a mixed bag

Leave a comment

One new figure shows home prices rose in April compared to March but fell year over year. Economists, however, are fairly upbeat

Home prices ticked up in April as market faced a mixed bag

Photo by DALL-E

BY JIM DALRYMPLE II
June 28, 2023

A pair of reports out Tuesday reveals that U.S. home prices ticked up slightly in April compared to March, though the reports also offered mixed signals about how well the market is holding up over the longer term.

Selma Hepp

Selma Hepp

Of Tuesday’s new numbers, the S&P CoreLogic Case-Shiller Index shows the biggest month-over-month gains in April, rising 1.3 percent. In a blog post on the numbers, CoreLogic Chief Economist Selma Hepp described this uptick as a “strong gain” for home prices and notes that it suggests “homebuying activity is heating up in many markets.”

“In addition, price gains among high-tier homes are once again showing a strong rebound,” Hepp added in a statement.

April’s gains represent the third consecutive month of home price increases, according to a report on the index.

Credit: CoreLogic

Also on Tuesday, the U.S. Federal Housing Finance Agency released its monthly FHFA House Price Index report. That report shows that home prices rose 0.7 percent in April compared to March.

Both the FHFA House Price Index and the S&P CoreLogic Case-Shiller Index are respected measures of U.S. home prices. Broadly speaking, they tend to highlight the same trends, though differences in methodology mean they don’t produce exactly the same numbers.

For example, the two indexes weigh differently valued homes in different ways, and the FHFA House Price Index includes reappraisals while the S&P CoreLogic Case-Shiller Index does not.

Interestingly, the two figures were in disagreement about what happened to home prices in April 2023 compared to April 2022. Year over year, the S&P CoreLogic Case-Shiller Index experienced a 0.2 percent decline in April — a drop that Hepp described as “the first annual loss since April of 2012.”

However, the report on the FHFA House Price Index states that in April prices actually rose 3.1 percent year over year. Despite that uptick, Nataliya Polkovnichenko — supervisory economist in FHFA’s Division of Research and Statistics — said that “house prices in some regions of the country continued to decline” in April.

The S&P CoreLogic Case-Shiller Index report also highlights some regional variation, with Miami seeing the biggest year-over-year price gains at 5.2 percent. Boston and Cleveland experienced the biggest month-over-month gains, at 2.9 percent and 2.3 percent, respectively.

Credit: CoreLogic

The report also reveals that month-over-month gains in many metro areas actually outpaced what was happening before the COVID-19 pandemic.

Economists generally responded to Tuesday’s new numbers with optimism. In a statement, Bright MLS Chief Economist Lisa Sturtevant suggested “a summer rebound” could be in the works thanks to “this surprisingly resilient housing market.” And she suggested, “this could be the turning point for home prices.”

Lisa Sturtevant

Sturtevant also points to high demand as a key factor in the current market.

“Rising mortgage rates were supposed to quell homebuyer demand and push home prices down,” Sturtevant said. “As rates escalated last year, buyer activity did stall. However, higher mortgage rates have not dampened buyer interest as much as many thought (or hoped) they would. As a result, while the Case-Shiller index showed a decline in April, the big home price drops some had predicted have not materialized.”

In a similar vein, George Ratiu — chief economist for real estate insights and analytics company Keeping Current Matters — said in a statement that the S&P CoreLogic Case-Shiller Index numbers “highlighted a spring housing market regaining its footing after a winter of dire forecasts.”

George Ratiu

Ratiu went on to note that demand rebounded in the spring, but that it also “ran headlong” into limited supply. That dynamic pushed prices higher and, to the surprise of some buyers, resulted in “multiple bids on well-priced properties,” Ratiu said. He added that this outcome is “an unexpected turn of events from the doom-and-gloom forecasts issued at the start of the year.”

“Real estate fundamentals remain out of balance, with demand still outpacing supply, and have a way to go toward health,” Ratiu said. But he also ultimately concluded that the “return of seasonal patterns is reinforcing the view that we are moving in a promising direction.”

Email Jim Dalrymple II

It’s a Tough Market for Buyers – Many Don’t Care

Leave a comment
woman showing buyers a house

MAY 12, 2023

By Kerry Smith

Survey: Most would-be buyers (55%) know it’s a really tough market right now, but a majority (54%) still plan to maintain current goals or speed up the buying process.

CHARLOTTE, N.C. – Many hopeful homebuyers – especially those in their 40s and younger – are forging ahead with plans to buy homes despite believing the market favors sellers, according to Bank of America’s 2023 Homebuyer Insights Report.

More than half of prospective homebuyers surveyed (55%) believe the market is more competitive than last year – but just as many (54%) plan to either speed up their home purchases or buy when they originally planned.

The percentage is even greater for younger generations: 62% of Gen Z and 55% of millennials.

However, not all want-to-be buyers plan to stay in the market, at least not now. Two in five (39%) believe it’s a seller’s market, while 18% say it’s a buyer’s market and 31% say it’s neither.

Current challenges cited by buyers

  • High prices and interest rates (51%)
  • A lack of cash reserves for down payments (37%)
  • A low credit score (37%)

Still, nearly 40% of those prospective homebuyers said they feel more confident in their ability to buy a home today versus last year, compared to 26% who are less confident and 28% who feel about the same.

“The market is less frenzied as rates have moderated, and that may be impacting perception,” says Matt Vernon, head of retail lending at Bank of America. “And low inventory is still creating a highly competitive environment. Homebuyers are doing the right thing by taking time to understand the market, weigh their priorities and determine what fits into their budgets.”

The motivation for many buyers? Financial security. Homeownership has historically helped families build long term-wealth.

A majority (56%) of Gen Z and the same percentage of millennial homebuyers plan to purchase in the next two years – nearly on par with Gen X (58%).

Nearly half (47%) of all prospective buyers say they’d buy a home in the current housing market because they’re tired of renting and of rent increases; 28% want to start building equity.

Inactive homebuyers still curious

Even hopeful buyers waiting for the housing market to cool are forging ahead in their own way, according to the study: More than two-thirds (67%) still actively look at homes for sale, either scrolling through a real estate app (52%) and/or visiting open houses (31%).

Those scanning for homes find it to be an enjoyable pastime (41%), a way to dream about their future home (37%) and a window into how others have decorated their spaces (32%).

Beyond simply looking for inspiration, two-thirds (65%) of those who scroll through listings are interested in what their current budget would get them if they were to buy today.

© 2023 Florida Realtors®

Leave a comment
illustration of houses with red graphic line showing

APRIL 7, 2023

Why Does It Still Feel Like a Seller’s Market?

By Kerry Smith

RE usually sees cycles between buyer’s and seller’s markets, but this time it’s a bit different. Supply vs. demand hasn’t changed because both sides pulled back.

SEATTLE – New listings fell 21.8% year-to-year during the four weeks ending April 2, one of the biggest drops since the start of the pandemic, according to a Redfin study.

An increasing number of homeowners don’t want to move because they still have generational-low mortgage rates secured only a few years ago. While rates have fallen for four weeks in a row, according to this week’s report, they’re still about twice as high as they were before 2021.

As a result, buyers unafraid of current mortgage rates quickly scoop up new listings. Of homes going under contract, nearly half are doing so within two weeks; at the beginning of 2023, it was about 25%.

“Elevated mortgage rates are perhaps an even bigger deterrent for would-be sellers than for would-be buyers,” says Redfin Deputy Chief Economist Taylor Marr. “Giving up a 3% mortgage rate for one in the 6% range is a tough pill to swallow. Today’s serious homebuyers have grown accustomed to the idea of a 5% or 6% rate and have adjusted their budgets accordingly.”

“Shiny new listings are getting multiple offers and selling fast. The caveat is that they have to be priced correctly from the beginning,” says Denver Redfin agent Stephanie Collins. “One of my buyers recently made an offer on a move-in ready home in a popular area. The home was priced right in line with the market at $520,000; it received eight offers and went for $560,000 to a competing buyer.”

Florida ranks near top for rising home prices

In cities where buyer demand outpaces seller supply, home prices continue to go up – and Florida is home to three of the top five U.S. cities for price increases.

While Milwaukee led the nation for price increases (up 11.4% year-to-year), Fort Lauderdale came in second (up 8.9%), followed by West Palm Beach (up 8.2%), Miami (up 7.9%) and Columbus, Ohio (up 6.3%).

On the flipside, the top five price declines in the U.S. were largely on the West Coast: Home prices dropped in 28 of the U.S.’s 50 most populous metros, with the biggest drop in Austin, Texas (down 14.7% year-to-year), Sacramento (down 11.7%), Oakland, California (down 10.4%), San Jose (down 10.2%) and Seattle (down 9.6%).

© 2023 Florida Realtors®

Existing-Home Sales Surged 14.5% in February, Ending 12-Month Streak of Declines

Leave a comment

Largest monthly percentage increase since July 2020

March 21, 2023 Media Contact:  Troy Green 202-383-1042
Read full NAR article

Key Highlights

  • Existing-home sales jumped 14.5% in February to a seasonally adjusted annual rate of 4.58 million, snapping a 12-month slide and representing the largest monthly percentage increase since July 2020 (+22.4%). Compared to one year ago, however, sales retreated 22.6%.
  • The median existing-home sales price decreased 0.2% from the previous year to $363,000.
  • The inventory of unsold existing homes was unchanged from the prior month at 980,000 at the end of February, or the equivalent of 2.6 months’ supply at the current monthly sales pace.

WASHINGTON (March 21, 2023) – Existing-home sales reversed a 12-month slide in February, registering the largest monthly percentage increase since July 2020, according to the National Association of REALTORS®. Month-over-month sales rose in all four major U.S. regions. All regions posted year-over-year declines.

Total existing-home sales,1 https://www.nar.realtor/existing-home-sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – vaulted 14.5% from January to a seasonally adjusted annual rate of 4.58 million in February. Year-over-year, sales fell 22.6% (down from 5.92 million in February 2022).

“Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines,” said NAR Chief Economist Lawrence Yun. “Moreover, we’re seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs.”

Total housing inventory2 registered at the end of February was 980,000 units, identical to January and up 15.3% from one year ago (850,000). Unsold inventory sits at a 2.6-month supply at the current sales pace, down 10.3% from January but up from 1.7 months in February 2022.

“Inventory levels are still at historic lows,” Yun added. “Consequently, multiple offers are returning on a good number of properties.”

The median existing-home price3 for all housing types in February was $363,000, a decline of 0.2% from February 2022 ($363,700), as prices climbed in the Midwest and South yet waned in the Northeast and West. This ends a streak of 131 consecutive months of year-over-year increases, the longest on record.

Properties typically remained on the market for 34 days in February, up from 33 days in January and 18 days in February 2022. Fifty-seven percent of homes sold in February were on the market for less than a month.

First-time buyers were responsible for 27% of sales in February, down from 31% in January and 29% in February 2022. NAR’s 2022 Profile of Home Buyers and Sellers – released in November 20224 – found that the annual share of first-time buyers was 26%, the lowest since NAR began tracking the data.

All-cash sales accounted for 28% of transactions in February, down from 29% in January but up from 25% in February 2022.

Individual investors or second-home buyers, who make up many cash sales, purchased 18% of homes in February, up from 16% in January but down from 19% in February 2022.

Distressed sales5 – foreclosures and short sales – represented 2% of sales in February, nearly identical to last month and one year ago.

According to Freddie Mac, the 30-year fixed-rate mortgage(link is external) averaged 6.60% as of March 16. That’s down from 6.73% from the previous week but up from 4.16% one year ago.

Read full NAR article

Week of March 10th Weekly Real Estate Update

Leave a comment

Key Findings:

  • The median listing price grew by 6.3% over last year. Growth in the typical asking price of for-sale homes moved lower after a slight uptick last week’s pace, once again hitting a new low since June 2020, when the housing market was beginning to bounce back from the initial pandemic shock. While the housing market had shown some signs of stabilizing, a renewed climb in mortgage rates could undermine the recovery. With the Fed signaling that higher rates for longer may be necessary to tame inflation, all eyes are focused on their March statement and clues on how their view of the future has evolved. 
  • New listings–a measure of sellers putting homes up for sale–were again down, this week by 26% from one year ago. For 35 weeks now, fewer homeowners put their homes on the market for sale than at this time one year ago. Until this week, the gap was slightly smaller than we saw in the last quarter of 2022. In February, attitudes toward housing worsened among both potential buyers and potential sellers as mortgage rates began to climb again and respondents reported lower job security. These attitudes could mean ongoing weakness in the number of homeowners deciding to sell. 
  • Active inventory growth continued to climb with for-sale homes up 61% above one year ago. Inventories of for-sale homes rose again, but the gain was the lowest we’ve seen since December. With new listings lagging behind year-ago pace, the growing number of homes for sale reflects longer time on market rather than an influx of sellers. It’s also important to remember that this year over year comparison is relative to early 2022, when active listings were at or near long-term lows. Even after these huge year over year gains, February data show that nationwide there are only just more than half as many homes for sale as were available pre-pandemic (-47%). 
  • Homes spent 18 extra days on the market compared to this time last year. For 31 weeks, homes on the market have been for-sale longer than was typical one year ago. After rising steadily from summer 2022, the gap surged early in 2023, surpassing the 3 week mark in mid-February. This week, however, marks the third week that the gap has shrunk even as new listings remain scarce, suggesting that buyers are active in the market, even if they are not as numerous as this time last year. Our February Housing Trends Report helps put these changes into context. Even though the median home listing was on the market for 67 days, 23 days longer than this time last year, this still trailed the pre-pandemic average for February by a nearly equal amount (20 days). In other words, using time on market as a guide, today’s housing market is halfway between its most frenetic period one year ago and what was typical before the pandemic-era frenzy. This means that the market has room to adjust in either direction, and mortgage rates will likely play a strong role in determining whether the market slows further or picks up speed.
Leave a comment
3 wooden homes, a pile of money and an FHA loan sign

Andrii Yalanskyi, Getty Images

DECEMBER 2, 2022

FHA Announces 2023 Loan Floors and Ceilings

By Kerry Smith

Loans for single units range from $472,030, the floor, to $1,089,300, the ceiling. For four units, it’s $907,000 to over $2M – and in some non-Fla. areas, over $3M.

WASHINGTON – The Federal Housing Administration (FHA) announced new loan limits for calendar year 2023 for its Single Family Title II forward and Home Equity Conversion Mortgage (HECM) insurance programs.

For most of the country, loan limits will increase next year due to house price appreciation during the first half of 2022, which is factored into calculations FHA uses to determine the limits each year. The yearly increase calculations for FHA loans and those backed by Fannie Mae and Freddie Mac are written into law.

“The loan limits announced today reflect steep increases in home prices throughout much of the country and will ensure continued access to FHA-insured mortgage financing despite those increases,” said Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon.

Forward mortgage loan limits

Range of prices for 2023 FHA loans based on location and number of units

Mortgage limits for the special exception areas of Alaska, Hawaii, Guam, and the U.S. Virgin Islands are adjusted by FHA to account for higher costs of construction.

In 2023 the maximum loan limits for FHA forward mortgages will rise in 3,222 counties. In 12 counties, FHA’s loan limits will remain unchanged. By statute, the median home price for a Metropolitan Statistical Area (MSA) is based on the county within the MSA that has the highest median price.

HECM loan limits

The HECM maximum claim amount will increase from $970,800 this year to $1,089,300 for FHA case numbers assigned on or after Jan. 1, 2023. This maximum claim amount is applicable to all areas, including the special exception areas of Alaska, Hawaii, Guam, and the U.S. Virgin Islands.

To find a complete list of FHA loan limits, areas at the FHA ceiling, and areas between the floor and the ceiling, visit FHA’s Loan Limits Page.

© 2022 Florida Realtors®