After a strong 2012, single-family originations will decline by about 15% next year as refinancings wane and an anticipated increase in home purchases falls short of filling the void, according to a new forecast from Freddie Mac.
Freddie Mac’s chief economist Frank Nothaft is predicting that single-family fundings will total $1.7 trillion in 2013, compared to an estimated $2 trillion this year.
According to figures compiled by National Mortgage News and the
Freddie is forecasting that in 2013
He noted that many borrowers have already locked in low rates and in 2013 rates will be higher, removing a key incentive to refinance.
Nevertheless, rates will remain below 4%. “This means homebuyer affordability should remain very high in 2013 for those potential buyers with good credit history, stable income and sufficient savings,” Nothaft says in his December Economic & Housing Market Outlook report.
Separately, a new Fannie Mae survey found that in November, 23% of home owners believe now is a good time to sell. The measurement is five percentage points higher than a reading taken in October. It marks the highest measurement since June 2010 when the GSE started the survey.
In addition, 51% of the respondents said it is easier for them to obtain a mortgage, up from 41% in November 2011.
“This growing confidence in a housing recovery, in addition to other factors, may reinforce growing consumer optimism regarding the improving direction of the general economy,” Fannie chief economist Doug Duncan said.
