2013 Real Estate Investment Financial Outlook

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:


The Year of the Real Estate Investor 

2012's favorable borrowing conditions have become even more attractive in early 2013 as already historically low interest rates have declined even further.  The prospect of investing in real estate in 2013 presents very unique opportunities for both positive monthly cash flow and significant appreciation in value.  I discuss the strategies behind taking advantage of low interest rates when buying or selling real estate investments in the following Real Estate Report video segment:  
The Real Estate Report with Brian Icenhower

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.