Some of the biggest mortgage companies are expecting growth on homes for sale in Encinitas and throughout the country for 2013. Companies like Fannie Mae, Freddie Mac, and the Mortgage Bankers Association predict that housing sales around the U.S. and in Encinitas will see growth as well as increased price stability.
In general the housing industry is expected to see increases in home prices and new-home sales. Specifically the Mortgage Bankers Association believes that loan originations will grow by 16% in 2013 from $503 billion in 2012 to $585 billion.
Fannie Mae expects that sales will increase 4.2% on both new and existing homes for 2013, with an 11% growth in purchase loan originations. Though it is expected that home prices will deteriorate through the winter months it is expected that the will increase into the first quarter of 2013.
The recovery is going strong, but some slow down could be experienced as a result of the slowing economic growth in China and Europe and due to spending cuts and tax increases that will be instituted on January 1st of 2013 focusing on tackling the spending deficit. Fannie Mae also expects that 30-year fixed-rate mortgages will average even lower next year than this year, with predictions expecting to average 3.4% compared to 2012′s average of 3.6%.
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