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Home prices have been on the rise since the start of the year, and they don’t appear to be slowing down. A big reason is that low mortgage rates have fueled a surge in buyer demand. Meanwhile, limited inventory is forcing buyers to duke it out in bidding wars, driving property values up.

Not surprisingly, home buyers are increasingly having to take out larger mortgages to finance properties given today’s prices. And so come 2022, conforming loan limits will be rising to account for these circumstances.

Conforming loans are those backed by Fannie Mae and Freddie Mac, the two government-sponsored entities that purchase mortgages. It’s possible to get a non-conforming loan, but usually, that means getting stuck with a mortgage that’s less affordable.

Each year, a limit is set for conforming loans. Right now, that limit is $548,250 in most of the country and $822,375 in high-cost areas. In 2022, these limits are rising to $647,200 and $970,800, respectively. But whether that’s a good thing is yet to be determined.