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!
Another indication of the recovery in the housing market in 2012 comes with the release of pending sales for Massachusetts. For the year pending sales of single family homes rose 25% and of condos 26%.
December was the 20th consecutive month of year over year increases.
Massachusetts Association of Realtors January 8, 2013
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
SFH sales in MHD in 2012 reached 229, the highest level since 2004, which was an exceptional year.
Condo sales remain well below the levels of earlier in the century for the reasons outlined in my December 8 post:
This is a short interview with Mike Tumulty, Marblehead’s Assistant Assessor, announcing 2013 tax rates. A fuller report, Twenty Questions with the Town Assessor, will be published this Saturday.
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
Sales of SFHs increased 38% over a year ago in November. Condo sales were up 33%.
The SFH median price increased 2%, while for the condos the figure was 7%.
Median prices were the same – $275,000 – for both SFHs and condos.
Data comes from the Warren Group
Jennifer McKim boston.com December 27, 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