Next year will mark the first in more than a decade that the mortgage market is dominated by purchase, rather than refinance activity, according to Freddie Mac’s most recent U.S. Economic and Housing Market Outlook. The outlook, released monthly, forecasts upcoming economic and housing market conditions based on current trends and data. Frank Nothaft, Freddie Mac’s vice president and chief economist, said refinance activity – as a share of total mortgage demand – will drop below 50 percent in 2014, marking a major transition in the housing finance industry and the first time since 2000 that purchase loans outpace refinancing demand. Nothaft also believes that home-sales gains and price growth will begin to moderate to more sustainable levels in the next year. Still, the forecast calls for a 5 to 6 percent increase in both sales and prices in 2014. The report also expects affordability conditions to remain strong, with mortgage rates expected to rise gradually throughout the year. More here.