Freddie Mac recently released its U.S. Economic and Housing Market Outlook for December showing what some of the market features are expected to look like in 2013.
According to the outlook, long-term mortgage rates will remain near their record lows for the first half of 2013, then rise gradually during the second half of the year, but remain below 4 percent.
Property values are expected to continue to strengthen with most U.S. house price indexes likely rising by 2 to 3 percent in 2013.
Household formation should step up further to a net 1.20 to 1.25 million household increase in 2013 with housing starts up around the 1 million annualized pace by the fourth quarter.
Vacancy rates for both apartments and the single-family for-sale market could bring aggregate vacancy rates down to 2002-2003 levels as household formation outpaces new construction.
While the refinance boom will continue into early 2013, it will be less compared with 2012, so single-family mortgage originations are likely to decline by 15 percent conversely, expect multifamily lending to rise approximately 5 percent.
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