5 Housing Trends in Spring 2011

Is a housing recovery in the cards this spring? It's hard to know for sure.

But if you plan to buy or sell your home in the coming months, here are five trends you should watch.

Mortgage rates have been volatile in recent months, but aside from rates, these five trends could make the mortgages themselves more expensive in the upcoming months.

* A new federal regulation that restricts how loan officers are compensated might result in higher costs for borrowers.

* Borrowers who have low credit scores, small down payments or little equity relative to their home's value will be subject to higher interest rates on so-called conforming loans that lenders can sell to Fannie Mae or Freddie Mac.

* The Federal Housing Administration has raised its annual mortgage insurance premium by one-quarter of a percentage point on all 15-year and 30-year loans.

* Another development that eventually might lead to higher loan costs is the federal government's definition, proposed in late March, of a qualified residential mortgage, or QRM.

* Borrowers who live in a relatively expensive housing market and who want a loan of more than $625,500 will pay more for their mortgage later this year. Effective Oct. 1, the top limit for conforming loans is set to drop from the temporary $729,750 to the general $625,500 in high-cost housing markets. For more about mortgage costs, see "Watch for rising mortgage costs."

This year, sellers' biggest competition might not just be a neighbor with a pool. Bargain-basement foreclosures have flooded most markets, putting the prices of others' homes at a competitive disadvantage.

But sellers can beat the deadbeats.

* If you're a homeowner who has been paying on time, that can go a long way with buyers.

* Provide market analysis of comparable homes sold in the last few months, with foreclosures broken out.

* Forget about making a killing on your home. Price aggressively.

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