The year of 2012 will be remembered as an
amazing year for real estate investment opportunity as unprecedented homebuyer
demand was consistently fueled by historically low mortgage interest rates.
Additionally, the close of the year delivered a stabilized housing
market with residential values consistently on the rise. Could real estate
investment possibly be looking even better in 2013?
Financing Availability
In order to determine 2013's real estate financial outlook its essential to first examine how the mortgage industry developed in 2012. Mortgage indsutry servicer Ellie Mae created the helpful infographic below from its 2012 Origination Insight Report that drew data from more than 20% of all loan origninations in the United States:
Interest Rates Soon to Rise
Real estate industry
experts resoundingly agree that in the follwing few years home values will rise and mortgage rates must increase. With an amazingly low average
interest rate of 3.8% in 2012, the Mortgage Banker's Association predicts that mortgage interest
rates will reach as high as 4.4% by the close of the year 2013. As a result, the
year 2013 presents the most favorable combination of circumstances in decades
with both appreciation in value and monthly cash flow readily available to real
estate investors.
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