Fannie Mae: Mortgage Rates To Remain Low, Home Sales Soar In Near Term

December 19, 2012

in News

Fannie Mae: Mortgage Rates To Remain Low, Home Sales Soar In Near Term

The gained momentum of economic activity posted in the third quarter is starting to slow, resulting in a sluggish recovery for the fourth quarter due to Hurricane Sandy and the effect on consumer and business confidence as a result of the fiscal cliff, Fannie Mae’s Economic & Strategic Research Group said Tuesday. However, housing continues to remain resilient as the industry continues to show signs of a strong recovery, chief economist Doug Duncan of the government-sponsored enterprise said. “Mortgage rates remain close to historic lows and home sales and home prices are trending positively. For the first time since 2005, residential investment is poised to contribute to annual economic growth this year, albeit on a small scale,” he said. Barclays posted its 2013 outlook report on housing, which supports the same key factors for a improved housing market. Falling inventories, continued pick up in housing demand, low mortgage rates and improved affordability are key factors that will continue to underpin home prices. [Read this article]

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