Big Predictions for Housing for Next 2 Years
Home sales are projected to post some big gains in the next two years, according to Fannie Mae’s latest monthly economic outlook.
Fannie Mae economists predict that existing-home sales will rise by 10.5 percent this year, and by 6.2 percent in 2014. The economists made even bolder projections for new single-family home sales — growing 15.1 percent this year and 44.1 percent in 2014.
“We expect home prices to firm further amid a durable housing recovery, continuing to boost household net worth, gradually diminishing the population of underwater borrowers, and reducing incentive for strategic defaults,” according to Fannie Mae’s report.
Fannie Mae projects that mortgage rates will stay low by historical averages this year, but the 30-year fixed-rate mortgage will rise from an average of 3.5 percent during the first quarter to an average of 4 percent during the final three months of 2013. During the fourth quarter of 2014, mortgage rates are projected to tick up to a 4.5 percent average.
Mortgage applications for purchases are projected to increase by 16.8 percent this year and by 17.1 percent in 2014. However, a decline in applications for refinancing will likely cause mortgage originations to be down 14.5 percent this year and by 31.4 percent in 2014, Fannie economists predict.
If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.
As always, if I can help with any of your real estate needs, please feel free to text or phone me at 615 417-8182 or email me at RolandLow1@gmail.com
Roland
source: REALTOR Magazine
The Wonderful World of Real Estate - Especially in Todays Market 