Because the economy is ~slowly~ getting better, the spring selling season inventory is growing and the Federal Government is tightening up it’s support for mortgages:

WSJ: Housing Finance Changes Likely To Mean Less Government Backing For Some Buyers

…home buyers have benefited from a temporary federal policy that has allowed mortgages up to $729,750 to receive government backing. Such home loans typically carry lower interest rates than those without government support, because investors are attracted by the official guarantee.

The administration is now likely to suggest that Congress allow the policy to lapse as scheduled in September, lowering the loan limit to $625,500.

Lowering this threshold will mean more difficult and expensive access to the extra $104,250 of borrowing. With interest rates generally predicted to rise over the next two-to-three years due to the Federal Reserve’s “Quantitative Easing” (e.g. running the currency printing press until it melts), we are at a great moment in time for home affordability.

If you’re contemplating selling, more buyers will be looking this spring. If you want to buy, get while the getting is good.

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