Fannie Sees Positive Real Estate and Lending Market in 2011
The slowly recovering economy has led Fannie Mae to project an improved outlook for the real estate market next year.
According to the report, while the mortgage giant expects that home prices will finish 2010 down approximately 0.6 percent compared with last year, they should bounce back slightly in 2011 before rising more than 4 percent in 2012.
Low mortgage rates should also continue to bring appealing conditions for those interested in buying a home. Fannie Mae‘s forecast shows that the company predicts that the average interest rate for a 30-year fixed-rate mortgage will be 4.3 percent in 2011 and rise incrementally to 4.6 percent the following year.
“The pace of recovery will largely be determined by labor conditions. If hiring improves at a faster pace than expected, home sales will likely see a stronger gain in 2011 and vice versa,” said Fannie Mae chief economist Doug Duncan.
The labor markets continue to be unsteady. While private employers added 151,000 jobs in October, the unemployment rate has remained steady at 9.6 percent.
In today’s challenging Los Angeles real estate market, selecting the right real estate agent is crucial. It can make all the difference in the world. Whether you’re planning on buying, selling, or you just have a question, feel free to call Toni Patillo. We service the Greater Los Angeles, the Westside, Beverly Hills, and more.
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