Although economic activity in Q3 2012 slowed down, mortgage and home buying activity in the US is predicted to climb in 2013, according to a report by Fannie Mae.
“With data pointing to soft economic conditions and the fiscal policy debate hanging in the balance, we expect growth in the current quarter to moderate from the pace seen last quarter,” said Doug Duncan, chief economist at Fannie Mae.
“On the bright side, the housing market has stayed resilient and continues to show signs of a strong, sustained recovery.”
Duncan pointed out that loan rates are still near record lows, while prices and sales of residential properties “are trending positively”. Additionally, property investments are expected to contribute to the yearly economic growth for the first time since 2005, albeit on a small scale.
Home sales this year is expected to increase by 10 percent and eight percent by 2013. While prices usually drop during the fall and winter seasons, they have risen significantly compared to 2011. This trend is forecasted to continue in the coming years.
Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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