NMLS 2275047

Mortgage Changes for 2022

2022 looks like it will be another busy year for the real estate market. We are looking at a year of higher loan limits, but also higher home costs and mortgage rates. Let’s take a look at each of these elements:

Higher Conforming Loan Limits

The Federal Housing Finance Agency (FHFA) recently increased the maximum value for conforming loans to $647,200 in most US cities. Previously, the maximum loan limit was $548,250.[1]

Why did the loan limit increase?

The FHFA has been tracking annual home price trends in more than 400 U.S. cities since the 1970s. This tracker is called the House Price Index (HPI). The FHFA adjusts the conforming loan limit to keep pace with home price increases so that home buyers have access to the funds they need to purchase their home. From Q3 2020- Q3 2021, the HPI rose 18.05%, so the conforming loan limit also rose 18.05%, or $98,950 to bring the limit up to $647,200[2].

Are there any exceptions to this new limit?

There are a limited number of counties in the US in which 115% of the local median home value exceed the conforming loan limit. In these areas, the loan limit is above $647,200. Here in Florida, the only county that has a higher loan limit is Monroe County, at $710,700[3].

What are the trends with home prices and mortgage rates?

Fannie Mae analysts expect that home prices will rise 7.6% in 2022, so while prices will still be increasing, it will be at a much slower rate than last year. Inflation is also expected to stay elevated. When inflation goes up, interest rates go up, which drive up mortgage rates. This means that it may be more affordable to buy a home now than later in the year because as the year progresses, both home prices and mortgages rates are expected to increase.[4]

So how do I start the home-buying process?

The first step in becoming a home buyer is being pre-approved for a mortgage. When you make an offer on a home, your offer will include a copy of the pre-approval letter so sellers know that you are a serious buyer and you have access to the necessary funds to purchase the home. Contact Choice Mortgage Group today to start your pre-approval process. Our friendly and knowledgeable loan originators make the application process quick and easy. Our fast turn-around means that you can go full steam ahead with viewing homes, making an offer, and moving into the home of your dreams.

Since 1995, Choice Mortgage Group has been providing homeowners with the best real estate financing programs available. As a licensed lender, we offer a wide variety of services and programs that satisfy the unique needs of each of our clients.

Specializing in residential mortgage lending for over 25 years, our programs include conventional and government lending, purchases, and refinances. We also offer portfolio lending for self-employed borrowers and borrowers with complicated tax situations. South Florida is where Choice Mortgage Group started, and we like to call it home. We are devoted Florida Atlantic University Owls fans and are proud to be the official mortgage lender of FAU Athletics. We also support numerous other local organizations. For more information about Choice Mortgage, visit www.choicemortgage.com.

Choice Mortgage Group

40 SE 5th Street, Suite 502

Boca Raton, FL 33432

(561) 709-5151


[1] Federal Housing Finance Agency. FHFA Announces Conforming Loan Limits for 2022 | Federal Housing Finance Agency. Accessed February 11, 2022.

[2] Federal Housing Finance Agency. FHFA Announces Conforming Loan Limits for 2022 | Federal Housing Finance Agency. Accessed February 11, 2022.

[3] Fannie Mae and Freddie Mac Conforming Loan Limits for Mortgages Acquired in Calendar Year 2022 and Originated after 10/1/2011 or before 7/1/2007. Accessed via: https://www.fhfa.gov/DataTools/Downloads/Documents/Conforming-Loan-Limits/FullCountyLoanLimitList2022_HERA-BASED_FINAL_FLAT.xlsx

[4]Fannie Mae. The Economy and Housing to Turn Toward ‘New Normal’ in 2022 | Fannie Mae. Accessed February 11, 2022.

Corporate Office

2424 N Federal Hwy, Suite 100
Boca Raton, FL 33431
(561) 395-6900
(888) 216-6476

NMLS 2275047


Official Mortgage Lender of Florida Atlantic Athletics



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2424 N Federal Hwy, Suite 100 Boca Raton, FL  33431 | Phone: (561) 395-6900 Toll-Free: (888) 216-6476
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