Freddie Mac made suggestions on what housing might look like in 2013 in its December outlook report. Overall, the GSE expects to see a continuation of positive trends.
For one, property values should still rise into the next year and are likely to increase by 2 to 3 percent, Freddie Mac reported.
The market should also see more households, with household formation expected to expand from a net 1.20 million to 1.25 million.
Long-term mortgage rates, which have been hovering near record lows, are forecast to maintain this trend into the first half of next year, but then rise in the second half. The GSE says rates will still stay below 4 percent, however.
The outlook for the rental industry was positive as well. Aggregate vacancy rates for the multifamily and single-family for-sale market are projected to come down to 2002-2003 levels as household formation outpaces new construction,the GSE explained.
Originations are expected to fall by…
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