(CNN) — Mortgage giants Fannie Mae and Freddie Mac will raise the limits of government-backed loans to a record level for 2023, with the maximum loan limit hitting more than $1 million for high-cost areas, the Federal Housing Finance Agency announced Tuesday. Even as the real estate market has cooled in the face of skyrocketing mortgage rates this year, home prices are still climbing, with prices up 12.21% in the third quarter compared to a year ago, according to FHFA. As a result, the baseline conforming loan limit for 2023 will be $726,200, up $79,000 from this year’s limit of $647,200. Higher-cost areas will have a new loan limit of $1,089,300, or up to 150% of the baseline loan limit. This year, the loan limit for high cost areas is $970,800. Mortgages above these loan limits are considered “non-conforming” or “jumbo” mortgages, and typically come with higher interest rates. Next year’s increases are not as large as those put in place for 2022. That’s largely because of slowin
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