According to recent reports on Consumer Confidence being on the rise and mortgage applications on the rebound after the devestation of Hurricane Sandy, Freddie Mac’s recent weekly Primary Mortgage Market Survey shows rates on a 30-year fixed-rate mortgage at a 3.34 percent average compared to previous weeks at 3.4 percent. Fannie & Freddie Mac are hoping the demand for purchase mortgages will be increased by the growth of housing sales and stability.
Economists are also predicting new and existing home sales to increase by 4% according to the forecast. If this is true, we can expect to see less distressed sales in the upcoming Spring market. The housing recovery could still be stifled by the upcoming tax increases and spending cuts at the end of 2012 also known as the “fiscal-cliff”.