On the heels of a strong 2012, nationalmortgagenews reports Freddie Mac’s chief economist Frank Nothaft predicts single-family loans will decline about 15 percent in 2013 as refinancings recede and home purchases decrease. Noting many borrowers have already taken advantage of low rates this year, Freddie forecasts refinancings will account for 60 percent of originations in 2013, as opposed to 75 percent this year. Nothaft says single-family fundings will hit close to $2 trillion in 2012, but drop to $1.7 trillion in 2013 as the interest rate rises but continues below four percent. Meanwhile, a Nov. Fannie Mae survey has revealed 23 percent of home owners believe now is a good time to sell, an increase of five points from Oct. 2012. Plus, as MHProNews has learned, 51 percent said a mortgage is within their grasp, up from 41 percent a year ago.
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