More jobs and easier loan terms will boost demand for new mortgages in the second half of this year as homebuyers shrug off higher interest rates, according to a Fannie Mae forecast.
Lending for mortgages to purchase homes will increase 21 percent for the final six months of 2013 to $341 billion from $282 billion in the first half, according to a copy of the forecast obtained by Bloomberg News.
Total U.S. residential mortgage debt probably will increase 1.1 percent in 2013 to $10 trillion, followed by another increase to $10.2 trillion in 2014, Fannie Mae estimated.
Read the full report here.
