The FHFA has announced increases to the conforming loan limits for the Greater Boston housing market going into 2017.

For the Essex, Middlesex, Norfolk, Plymouth and Suffolk housing markets, the loan limit for single-family homes will rise from $523,250 to $598,000. For all five counties, the loan limits increase for properties with additional units: $765,550 for two-unit structures; $925,350 for three-unit; and $1.15 million for four-unit.

The increase is important for two reasons: along with more homebuyers now having access to cheaper Fannie/Freddie mortgages, the jumbo loan threshold has now been heightened, meaning that fewer buyers will have to resort to costly jumbo financing for their home purchases.

And the FHFA’s decision could not have come at a more important time, given that low inventory continues to push Greater Boston home prices higher and higher. As we reported yesterday, the median sales price for single-family homes is up 10.8 percent year-over-year to $526,300, while for condos, sales price is up 5.3 percent to $479,238. Year-to-date, prices are even higher – $541,000 for single family (up 4.4 percent) and $487,455 for condos (up 8.3 percent).

Note: An earlier version of this story incorrectly cite the new conforming loan limits; the numbers have been corrected.