Fannie Mae: US Housing Market in Recovery
With consumer confidence making a comeback so too is the US housing market.
In a 2013 Housing Outlook from Fannie Mae, projections are calling for a normal economic growth rate, which will be in part due to a housing recovery which is already underway. As we have seen with consistent attributing factors like increased housing prices, sales, and building, the economy is still well below its potential. Despite positivity in housing, the economy has yet to see its full recovery.
"At the outset of the year, we forecasted that 2013 would witness sustainable but below-par growth as the economy begins its transition to more normal levels. Halfway through the year, our view is little changed," said Fannie Mae Chief Economist Doug Duncan. "We expect approximately 2.1 percent growth over the course of 2013, up from the anemic pace of 1.7 percent in 2012. This is consistent with the incremental improvement seen over the past few years but still below the economy’s potential. Our forecast calls for growth to push past 2.5 percent in 2014, boosted largely by tailwinds from the strengthening housing market."
And, in the past month, with mortgage rates on the rise, it seems that this housing market recovery will not be substantially affected. Those wary of entering the marketplace earlier in the year are finding good reason to either buy or sell with the current trends. Affordability is still very high and represents the upswing and recovery climate.
With full economic normalcy expected to return by 2016, housing will likely continue to improve in the coming months and years, barring unforeseen circumstances. Rates will fluctuate, but Fannie Mae says it has raised its year-end rates forecast by half a percent to 4.7 percent by the end of 2013.
With rising prices, those on the fence will soon pick a side. Let us know how these projections affect you in the comment section below.
Do you see your housing market in recovery? How do these figures affect you?
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