“In wake of huge losses, Fannie Mae announces changes that will make home loans harder and more expensive to obtain.”
CNNMoney.com has a story about the rising costs of obtaining a mortgage. Higher interest rates are only part of the story. Fees will be going up as well.
The National Association of Realtors chief Economist, Lawrence Yun had this to say about the coming changes from Fannie Mae and Freddie Mac:
It’s very negative,” said Lawrence Yun, chief economist for the National Association of Realtors. “Any time there’s an additional imposition of fees in obtaining a mortgage, it knocks some potential buyers out of the market.
In my opinion these changes will likely have greater immediate impact on homes priced under $400,000. However, since every property is part of a food chain, if sellers have greater difficulty finding qualified buyers for their $300-$400k home, it makes it more difficult for them to move up to a $600-$800k home.
These are yet more hurdles for the real estate market to overcome as the great unwind continues from the debt and mortgage bubble.