Freddie Mac announced a new cap of $88 billion for its 2026 multifamily loan purchases, a jump from the $73 billion cap set for 2025. The increase follows the Federal Housing Finance Agency’s (FHFA) assessment that the multifamily debt‑origination market will grow substantially in the coming year, and it is intended to provide additional liquidity to lenders while maintaining a strong affordable‑housing mandate.
The 2026 cap represents a 20.5% rise over the 2025 level and a 25.7% rise over the 2024 cap of $70 billion. Freddie Mac must still purchase at least 50% of its loans from mission‑driven, affordable‑housing borrowers, a requirement that has been in place for several years. Workforce‑housing loans are excluded from the cap, consistent with the 2025 rules.
The FHFA’s decision was driven by projections that the multifamily market will generate $370 billion to $380 billion in new debt in 2025, a level that justifies a higher cap for 2026. Freddie Mac’s own data show that in 2023 it financed over 423,000 affordable units, with 66% of its production volume qualifying as mission‑driven—well above the 50% target. The agency’s guidance also notes that the cap will be adjusted upward if the market expands beyond expectations, and it will not be reduced if the market contracts.
Kevin Palmer, Freddie Mac’s Head of Multifamily, said the new cap “will enable us to provide even more liquidity to create affordable apartment supply across the country each year.” He added that the agency’s confidence in the market’s growth signals a continued partnership between Freddie Mac and the FHFA to support low‑to‑moderate‑income renters.
Freddie Mac’s share of the multifamily market reached 58% in 2023, up from 39% in 2022, underscoring its dominant position. While the announcement did not trigger a measurable market‑reaction in the short term, the increase is likely to reinforce investor confidence in Freddie Mac’s ability to scale its financing operations in line with federal housing policy goals.
The higher cap will provide lenders with greater liquidity, potentially accelerating the development of new affordable units nationwide. Because the cap is designed to avoid crowding out private capital, the increase is expected to complement, rather than replace, private‑sector participation in the multifamily market. The FHFA will continue to monitor market conditions and may adjust the cap again if the 2026 origination volume deviates from projections.
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