Fannie Mae Sees Easier Loan Terms Sustaining Home Sales

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.