Preempting Conforming Home Loan Limits Can Boost Year-End Volume

As the Federal Housing Finance Agency (FHFA) prepares to announce the 2025 conforming loan limits (CLL) in November, many forward-thinking lenders are raising their CLL preemptively. That’s because making the move ahead of the FHFA’s official announcement can translate directly into more conforming volume in the final quarter of the year—an essential period for hitting annual targets.   

According to Curinos First Mortgage Originations data, in the past four years both depository institutions and IMBs have seen marked increases in conforming loan volume above each year’s one-unit CLL, with an average 6% increase in locked volume from October to December. In 2021 and 2022 alone, the volume surged to an average of 8% over the final three months of each year, up from only 2% from January to September (see chart).  

As the mortgage landscape becomes increasingly competitive, particularly in high-cost areas, borrowers are actively looking for ways to finance larger loan amounts without moving into jumbo loan territory—a shift that can offer lower rates and more flexible underwriting. For lenders, staying ahead of the FHFA’s November announcement can help them capitalize on that impending demand.