The housing market is expected to
continue its rise in the New Year, according to Freddie Mac’s U.S.
Economic and Housing Market Outlook for December.
Continuing to keep home affordability low, mortgage rates will likely
remain near their record lows in the first half of 2013, Freddie Mac
reports. However, the all-time low rates are expected to start inching
up slowly during the second half of the year.
Still, mortgage rates are expected to stay below 4 percent, Freddie Mac reports.
Some other forecasts for the housing market in 2013, according to Freddie Mac’s report:
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Home values are expected to increase 2 to 3 percent next year.
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Household formation is expected to increase to a net 1.20 million to
1.25 million household in 2013. Housing starts are expected to reach
near the 1 million annualized pace by the fourth quarter.
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Vacancy rates are expected to drop to 2002 and 2003 levels for
apartments and single-family homes for-sale “as household formation
outpaces new construction.”
Source: Freddie Mac