Earlier this month, mortgage magnate Fannie Mae announced that the second half of 2012 will most likely outpace the first half as far as growth goes. Doug Duncan, chief economist, explains that because we are seeing unemployment numbers fall slightly, we are going to be seeing "positive household and consumer behavior." A report released on 13 January 2012 estimated that total home sales will increase 3.5 percent, up to about 4.74 million, this year and another five percent in 2013, bringing totals up to almost five million. It is entirely possible that new construction home sales could increase by a whopping 10.4 percent this year alone.
The Federal Housing Finance Agency's home sales price index could fall 1.1 percent this year (excluding refinances). Fannie Mae expects total mortgage originations to fall to $1.01 trillion this year -- down from 2011's final count of $1.36 trillion. Some economists are saying that 2012 refinances will fall to $540 billion, down from $894 billion last year. However, mortgages for home purchases should see gains of up to $471 billion in the coming months.
