“Given improvements seen in housing, Fannie Mae revised its housing forecast higher for 2012 and 2013 in its November economic outlook report.
Considering these developments in housing, the GSE’s Economic & Strategic Research Group anticipates single-family housing starts will jump 25 percent this year, then rise by another 22 percent in 2013.
Existing-home sales should also rise and see a 9 percent increase in 2012 and a 4 percent gain in 2013.
When combining new and existing-home sales, the increase is expected to be 10 percent this year and an additional 6 percent in 2013. And if there’s any risk in this forecast, Fannie Mae says it’s that housing demand may actually result in stronger housing activity than currently anticipated.
Based on the Federal Housing Finance Agency’s purchase-only index, home prices should see an increase of 2.9 percent for the remainder of 2012 and a 1.6 percent increase in 2013.
Fannie Mae was also optimistic about originations and expects originations to reach $1.81 trillion in 2012 and $1.54 trillion in 2013. The refinance share of originations should rise to 71 percent in 2012 before dropping to 62 percent in 2013, according to the report.
The 30-year fixed-rate mortgage is expected to stay low and average 3.5 percent in 2013…”
Read the rest of this article by DSNews.com here: “Fannie Mae Releases Forecast on Housing, Economy”.
I’d love to hear YOUR forecast for the housing market–what do you predict for the future of real estate?