Mortgage Blog

1. Home Sales Steady Before Slight Increase
The MBA expects total existing home sales will stay
around the 4.9 million unit pace for 2011 and 2012.
But in 2013, the MBA expects home sales to increase
slightly to 5.2 million units, as the broader economy recovers.
New home sales are expected to be similar to the overall
trend. As the MBA stated in its release:
The recovery in the new home sales will have a comparably
slow start but will show some meaningful increases in 2013.

2. Slight Growth in Home Purchases
Despite an expected decrease in refinances, the MBA
forecasts some slight growth in the number of mortgages
for home purchases. Specifically, the MBA anticipates
home loans for purchases to increase to $412 Billion in 2012,
which would be up from the anticipated 2011 total of $400 Billion.
Better still, the MBA expects home loans for purchases to jump
significantly to $700 Billion in 2013 as the economy, home sales,
and home prices are all anticipated to pick up. 

3. Rates to Remain Low
Overall, fixed home loan rates are expected to remain
low by historical standards. The MBA expects rates to
end 2011 around a 4.5 percent average, and then possibly
dropping slightly to 4.4 percent at some point in 2012.
But by 2013, the MBA expects rates to climb back up to
4.9 percent which is still low by historical standards
but does indicate a change in direction.