Mortgage Rates Expected to Remain Low While Home Prices Forecasted to Increase 4 Percent in 2013

Fannie Mae is forecasting a rosy housing picture for 2013 with home prices and home sales both increasing. After several years of the drastic home price declines, prices are finally moving higher again and at a fast clip. Low mortgage rates today and low home prices are finally having an effect as buyers are coming back into the market in full force.

Mortgage Rates Expected to Remain Low While Home Prices Forecasted to Increase 4 Percent in 2013For 2013 Fannie Mae is predicting home prices will increase 4 percent and existing home sales will increase 10.5 percent. Fannie Mae is also predicting home sales will increase another 6.5 percent in 2014. Fannie Mae is also forecasting current mortgage rates will remain low for the next several years.

Loan Type
Purchase    Refinance
Location
State/City    Zip Code
Loan Amt Points FICO % Down
  
$
30 yr fixed refi in 23223, All points, Credit score: 740+     Sort by:
Lender
APR
Rate
Cost & Fees
Notes
 
30 yr fixed mtg refi Mortgage Loan from State Department Federal Credit Union
State Department Federal Credit Union
300000
Refinance
4.557
4.500
USD
State Department Federal Credit Union

4.557%
3/18/2019
4.500%
at 0.000 pts
60 day lock rate
Est payment: $1,520.06
Fees in APR: $2,000
 
 
30 yr fixed mtg refi Mortgage Loan from LincolnWay Community Bank
LincolnWay Community Bank
300000
Refinance
4.280
4.250
USD
LincolnWay Community Bank

4.280%
3/19/2019
4.250%
at 0.000 pts
30 day lock rate
Est payment: $1,475.82
Fees in APR: $1,085
 
 
30 yr fixed mtg refi Mortgage Loan from Northwest Federal Credit Union
Northwest Federal Credit Union
300000
Refinance
4.326
4.250
USD
Northwest Federal Credit Union

4.326%
3/20/2019
4.250%
at 0.875 pts
45 day lock rate
Est payment: $1,475.82
Fees in APR: $79
 
 
30 yr fixed mtg refi Mortgage Loan from Bank of Oak Ridge
Bank of Oak Ridge
300000
Refinance
4.225
4.180
USD
Bank of Oak Ridge

4.225%
3/21/2019
4.180%
at 0.250 pts
60 day lock rate
Est payment: $1,463.55
Fees in APR: $853
 
 
30 yr fixed mtg refi Mortgage Loan from Santander Bank, N.A.
Santander Bank, N.A.
300000
Refinance
4.432
4.375
USD
Santander Bank, N.A.

4.432%
3/21/2019
4.375%
at 0.000 pts
60 day lock rate
Est payment: $1,497.86
Fees in APR: $2,004
 
 
30 yr fixed mtg refi Mortgage Loan from Raymond James Bank, NA
Raymond James Bank, NA
300000
Refinance
4.537
4.500
USD
Raymond James Bank, NA

4.537%
3/19/2019
4.500%
at 0.000 pts
45 day lock rate
Est payment: $1,520.06
Fees in APR: $1,299
 
 
30 yr fixed mtg refi Mortgage Loan from Virginia Credit Union
Virginia Credit Union
300000
Refinance
4.432
4.375
USD
Virginia Credit Union

4.432%
3/19/2019
4.375%
at 0.125 pts
45 day lock rate
Est payment: $1,497.86
Fees in APR: $1,650
 
 
30 yr fixed mtg refi Mortgage Loan from TD Bank, NA
TD Bank, NA
300000
Refinance
4.152
4.125
USD
TD Bank, NA

4.152%
3/15/2019
4.125%
at 0.000 pts
45 day lock rate
Est payment: $1,453.95
Fees in APR: $982
 
 
30 yr fixed mtg refi Mortgage Loan from Bank of America
Bank of America
300000
Refinance
4.321
4.250
USD
Bank of America

4.321%
3/20/2019
4.250%
at 0.415 pts
60 day lock rate
Est payment: $1,475.82
Fees in APR: $1,289
 
 
30 yr fixed mtg refi Mortgage Loan from Apple Federal Credit Union
Apple Federal Credit Union
300000
Refinance
4.345
4.250
USD
Apple Federal Credit Union

4.345%
3/20/2019
4.250%
at 1.000 pts
60 day lock rate
Est payment: $1,475.82
Fees in APR: $352
 
 
30 yr fixed mtg refi Mortgage Loan from Fulton Bank, NA
Fulton Bank, NA
300000
Refinance
4.550
4.500
USD
Fulton Bank, NA

4.550%
3/19/2019
4.500%
at 0.250 pts
60 day lock rate
Est payment: $1,520.06
Fees in APR: $1,007
 
 
30 yr fixed mtg refi Mortgage Loan from Citizens Bank, NA
Citizens Bank, NA
300000
Refinance
4.551
4.500
USD
Citizens Bank, NA

4.551%
3/15/2019
4.500%
at 0.125 pts
60 day lock rate
Est payment: $1,520.06
Fees in APR: $1,408
 
 

Mortage Data Provided by Bankrate.com Many lenders have different rates on their own Websites than those posted on Bankrate.com. In order to get the Bankrate.com rate, please identify yourself as a Bankrate.com customer. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the lender you choose, please click here.

The rates above were collected by Bankrate.com on the dates specified. Rates are subject to change without notice and may vary from branch to branch. Rate/APR and terms may vary based on the creditworthiness of the individual and the extent to which the loan differs from the one used for Bankrate.com quotes. For criteria used in surveys of rates above, click here. These quotes are from banks, thrifts, and brokers, some of whom have paid for a link to their own Web site, where you can find additional information.





Today's mortgage rates on 30 year conforming loans are averaging 3.69 percent and are expected to remain under 4.00 percent for all of 2013. For the next year, 30 year conforming rates are expected to remain under 4.50 percent. While mortgage rates are moving higher, rates are still very low historically speaking.

Another factor driving home prices higher rather quickly is the number of homes for sale. The amount of homes available for sale has also declined this spring to the lowest point since the housing bubble back in the mid 2000's. The National Association of Realtors reported there is only a 4 month inventory supply of existing homes for sale, down from a 12 month supply just a few years ago.

The NAR also reported the total number of homes available for sale is also at a multi-year low. In 2005 the monthly supply of homes for sale was just above 1 million, at the height of the housing bubble, that monthly number ballooned to over 3 million. Now the monthly number of homes available for sale is just above 1 million again.

A tight supply of existing homes for sale will contribute to higher home prices as home buyers compete for homes, just like during the housing bubble. Shannon Drury, a Prudential Real Estate agent in Connecticut said, "Homes that are moving quickly now are priced right and usually have multiple offers."

Since the housing bust, home builders have also pulled back considerably on building new single family homes. At the height of the housing bust in 2009, builders broke ground on only 554,000 new homes. In 2012 new home starts were 780,000 and Fannie Mae forecasts builders to start on 990,000 new homes. In 2014 the forecast is for 1,320,000 new homes, the highest number since 2007.

While the number of existing homes and new homes for sale is expected to increase in the coming years, the supply won't dampen the rate of home price appreciation. The nation added 1.15 million households in the 12 months that ended in September, according to the most recent Census Bureau data. The number of households increased dramatically in 2012 over the prior 4 years when the number of new households formed averaged only 650,000 annually.
Author: Robert Till
April 2nd, 2013