“The impressive home price gains of 2012 and the beginning of 2013 have had a big impact on the distribution of residential home equity. During the past year, 1.7 million borrowers have regained positive equity. We expect that the pent up supply and falling negative equity releases will moderate price gains in many of the fast appreciating markets this spring.” — Dr. Mark Fleming, Chief Economist, CoreLogic (Source:CoreLogic Equity Analysis Report)
Housing Forecast is Positive
According to Fannie Mae’s Economic and Strategy Research group, housing will contribute to modest recovery of the economy in the second half of 2013 and into 2014. Home affordability continues to be good despite the rising mortgage interest rates and home prices are still much below their peak levels. The forecast for economic growth is around 2.1% over the next half of the year, and roughly 2.5% in 2014.
Freddie Mac’s 30-year fixed-rate mortgage averaged 3.98%, and the 15-year fixed-rate mortgage averaged 3.01% for the week ending June 13, 2013.