The economy will be a little stronger in the second half of 2013 than the first half, with housing expected to act as a tailwind throughout the year and into 2014, economists at Fannie Mae said in releasing their latest forecast.

Recent housing indicators point to continued recovery, with a surge in multifamily construction pushing the annualized pace of total housing starts in March past the 1 million mark for the first time since mid-2008. The boom in multifamily construction is driven by the continuing decline in the homeownership rate, which dropped to 65 percent during the first quarter of 2013, the lowest rates since 1995.

While new-home sales are “showing signs of life,” sales of existing homes are “moving sideways,” Fannie Mae economists noted in a summary of recent economic events.

“Lean inventories, a declining share of distressed sales, and increased efforts to implement short sales and other foreclosure alternatives have helped boost home prices, which showed strengthening annual gains so far this year,” Fannie Mae economists said.

Fannie Mae’s affordability index, which looks at mortgage rates, family income and home prices, estimates that affordability peaked in 2012 but that homes will remain more affordable than during “normal” times through 2017. Source: fanniemae.com.

 

 

Back to top
Will you attend ICLV virtually or in-person? The agenda is packed with stellar speakers and sessions.Learn More×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription