Complex sentence: Fannie Mae and Freddie Mac each year set criteria on what constitutes a conforming loan, based on the October-to-October changes in mean home price, above which a mortgage is considered a jumbo loan, and typically has higher rates associated with it.
Split into simpler sentences: Fannie Mae and Freddie Mac each year set criteria on what constitutes a conforming loan. The maximum loan amount is set based on the October-to-October changes in mean home price, above which a mortgage is considered a jumbo loan, and typically has higher rates associated with it.