The Federal Housing Finance Agency (FHFA) has announced significant increases in conforming loan limits, raising the maximum size of most single-family loans guaranteed by the government to $806,500. This adjustment aims to accommodate rising home prices, allowing Fannie Mae and Freddie Mac to support homes costing nearly $1 million. Additionally, FHFA has set new multifamily loan purchase caps at $73 billion for Freddie Mac and increased caps for Fannie Mae, reflecting a strong focus on affordable housing and support for renters. The raise in agency lending caps is anticipated in the context of modest growth in the housing market.