The Federal Housing Finance Agency (FHFA) has announced that it will raise the maximum conforming housing loan limit to $424,100, up from $417,000 for most parts of the country. Conformable loans are those that meet the requirements of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) to be purchased by those entities. The new limit will go into effect in 2017. This is the first time since 2006 that the loan limit has been raised. The Housing and Economic Recovery Act of 2008 (HERA) established the current baseline loan maximum of $417,000. Although the act calls for the loan maximum to be adjusted each year, the adjustment is tied to the degree to which housing prices have risen during the economic recovery. Next year will be the first year in which housing prices have sufficiently recovered to trigger an increase in the limit.