Big Predictions for Housing for Next 2 Years
Daily Real Estate News | Friday, March 29, 2013
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 refinancings will likely
cause mortgage originations to be down 14.5 percent this year and by 31.4
percent in 2014, Fannie economists predict.
| .
Rate on 30-year mortgage falls to
3.43% --April 11, 2013
Rate fell sharply and are close
to record-low hit last fall, but not a single expert polled by Bankrate.com this
week predicts further drops soon
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Florida Keys statistics
December 2012 through February 2013
Single Family
Homes
Closed sales + 15.2% over prior
year
Pending sales + 44% over prior
year
Inventory down 19.3% over prior
year
Condo/townhomes
Closed sales -30% but up +14.3%
for February
Pending sales +20% over prior
year
Inventory down 8.3% over prior
year
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