In my November 27 article Refinancing – don’t make just the minimum payment I wrote: “Don’t assume that rates will either go lower still or that they will necessarily stay this low for as long as the Federal Reserve is currently saying. If the economy does strengthen from here, interest rates my move up sooner than expected.”
The Mortgage Bankers Association has just issued a forecast that mortgage rates will increase gradually as the economy improves and finish around 4.4 percent in the fourth quarter of 2013.
More reason to consider buying NOW!
Consumer confidence in the housing sector grew last month, marked by continued positive attitudes toward home price, rental price, and mortgage rate expectations, according to Fannie Mae’s December National Housing Survey results. The growing belief held by Americans that these housing indicators will climb in 2013 may inspire a boost in home purchase activity during the coming months.
Listen to a podcast:Fannie Mae housing-survey-podcast-010713
or read the surveyFannie Mae December 2012 national housing survey
The NAR estimates that sales should increase 8-9% in 2013 to about 5.1 million, with the median price rising 4%.
National Association of Realtors December 28, 2012
It is clear that the housing recovery is gathering strength.
Last week’s final revision to third quarter GDP growth showed that housing represented 10% of the
growth while accounting for less than 3% of GDP.
S&P/Case-Shiller December 26, 2012
Existing home sales in November were up 14.% from a year ago and reached the highest level since November 2009.
The median price rose rose for the 9th consecutive month and is up 10.1% from a year ago.
Housing inventory fell to 4.8 months of supply, the lowest level since September 2005.
National Association of Realtors, December 20, 2012
A combination of factors, including declining time-on-market, a drop in distressed properties and rising average home prices, are all pointing to a strengthening housing market in the months ahead.
Campbell/InsideMortgage Housing Pulse, December 21, 2012
The latest data offers “more evidence that we are past the worst of the foreclosure problem brought about by the housing bubble bursting six years ago,” says Daren Blomquist, vice president at RealtyTrac
National Association of Realtors, December 13, 2012
Jay Fitzgerald, Boston Globe, December 1
As a result of an improving economy and successful loan modification programs, the foreclosure crisis both in MA and nationally finally seems to be ebbing.
Shobhana Chandra, Bloomberg, November 20,2012
New-home construction unexpectedly climbed to a four-year high in October, more evidence of a revival in the industry that’s helping propel the U.S. economy.
Housing starts rose 3.6 percent to a 894,000 annual rate, the fastest since July 2008 and exceeding all estimates in a Bloomberg survey, Commerce Department figures showed today in Washington. The median forecast of 82 economists called for an 840,000 pace.
Permits for the construction of single-family homes also advanced to the highest in four years. Full Story
The Editors, Bloomberg View, November 18,2012 The Federal Housing Administration may report this week that it could exhaust its reserves because of rising mortgage delinquencies, a development that could result in the agency needing to draw on taxpayer funding for the first time in its 78-year history. This would follow the $137 billion spent on bailing out Fannie Mae and Freddie Mac. Just like Fannie and Freddie, the FHA has played an important role in stabilizing the housing market, but the three agencies are now backing almost 90% of new mortgages. As my daughter would say, it’s complicated. Read Bloomberg View article