Fannie Mae sees nationwide home price growth next year

While home prices in many cities across the country have faltered, the latest forecast from Fannie Mae shows that it expects the national real estate market to show positive movement next year.

Fannie Mae chief economist Doug Duncan says that figures from 2010 are "marking the bottom" of the housing market, and that total home sales should increase by 3 percent in 2011 and more than 8 percent the following year - also driving an increase in home prices.

At the same time, the mortgage lender is also saying that interest rates should remain low, affording homebuyers continued affordable financing if they are able to qualify for a loan. The forecast says that next year, the average interest rate for a standard 30-year fixed-rate mortgage should be 4.3 percent, and rise only to 4.6 percent in 2012.

The Houston real estate market has also experienced a number of recent positive signs. In its report last week, the Houston Association of Realtors said that as many as 1,400 people per month had moved into Texas. While they are currently driving up rental demand, officials are hopeful they could turn into home sales in the coming months.