Mortgages may cost more soon

The recent announcement of federal changes to the housing market may jump-start the plans of those who were considering moving in the near future, according to Reuters.

The plans to wane down the influence of Fannie Mae and Freddie Mac in the housing market will likely result in higher costs of obtaining mortgages, the news source reported. The recently released government housing plan also called for other changes, including increasing down payments and lowering the ceiling for mortgage request amounts, as well as increasing fees.

Already, the two groups have added additional fees for homeowners who have taken out loans with companies while mortgage rates overall have begun a steady increase.

Some real estate experts are encouraging potential homebuyers to act now, before opportunities for excellent home prices and mortgage rates begin to fade.

"If you can effect a transaction now, it's probably not a bad idea," Keith Gumbinger, from the mortgage research firm HSH Associates, told Reuters.

What Gumbinger and other associates are saying now has been echoed in the past. In May, mortgage consultant RJ Baxter encouraged readers of his blog on Zillow to purchase homes then, instead of waiting for the market to bottom out. "It is impossible to time the market exactly at the bottom, and if we are not there, we are close," he said.  

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