FHFA hikes multifamily lending caps for 2026

Core Insights - The Federal Housing Finance Agency (FHFA) has set lending caps of $88 billion each for Fannie Mae and Freddie Mac, totaling $176 billion for multifamily loans in 2026, an increase from $73 billion each in 2025 [6] - The decision is expected to enhance capital availability in the multifamily market and indicates a focus on housing affordability [3][4] - The multifamily market is projected to face nearly $90 billion in maturing debt in 2026, with a significant portion from a lower-rate environment, positioning Fannie and Freddie as viable refinancing options [5] Lending Caps - FHFA has established lending caps of $88 billion for each GSE, allowing a total of $176 billion in multifamily loans for 2026, up from $146 billion in 2025 [6] - The caps for 2024 were set at $70 billion each, and for 2023 at $75 billion each [6] - Loans financing workforce housing will be excluded from next year's limits, with a requirement that at least 50% of GSE multifamily business be mission-driven, affordable housing [6] Market Outlook - The FHFA's decision is seen as a signal for increased multifamily lending activity in 2026 compared to the current year [4] - Industry experts anticipate that the expanded caps will enable GSEs to better support the multifamily market amid conservative lending from banks and non-bank lenders [5]