The federal government is about to backstop mortgages of more than $1 million for the first time in high-cost markets, such as parts of California and New York, the Wall Street Journal reported. The increase reflects the rapid appreciation in home prices over the past few years, even as the mortgage market has recently cooled. The maximum size of home-mortgage loans eligible for backing by Fannie Mae and Freddie Mac will rise to $1,089,300 next year in a few expensive markets, from $970,800 this year, the Federal Housing Finance Agency said Tuesday. For most parts of the country, loan limits will rise to $726,200 from a 2022 maximum of $647,200, said FHFA, which oversees mortgage-finance giants. By law, loan limits are calculated annually using a formula that factors in average housing prices. In all, about 100 counties and county equivalents, out of more than 3,000 across the U.S. are designated as high-cost markets, also including some in New Jersey, Virginia and Utah, according to the FHFA.
