Home price, mortgage rate increases expected in 2013
Posted on Monday, January 7, 2013 at 3:50:05 PM
The housing market gained considerable momentum in 2012, and this trend of growth is expected well into the near year. However, these developments could make the the transition to homeowners less affordable for consumers.
During the month of December, an estimated 43 percent of Americans claimed property values would appreciate in the next 12 months, according to a survey conducted by Fannie Mae. Out of these respondents, the average person polled said they expected to see national prices appreciate by at least 2.6 percent.
"The highest share of consumers in the survey's two-and-a-half-year history expect home prices to increase in the next 12 months," said Fannie Mae vice president and chief economist Doug Duncan. "This view is consistent with Fannie Mae's expectation that home prices will rise going forward on a national basis."
Meanwhile, a similar share of respondents believe mortgage rates will also increase significantly in the coming months, even though recent developments indicate the opposite, the survey found.
However, should this be the case, prospective borrowers can consult Home Loan Investment Bank's mortgage comparison chart to get a feel for their financing options.