The latest market forecast from JPMorgan Chase is a fairly optimistic one with expectations of U.S. home prices rising as much as 7 percent in 2013, HousingWire reports today, “JPMorgan raises home price forecast, sees long road to recovery.”

“As we pointed out in our 2013 outlook, the distressed sale discount should continue to decline. Indeed, the quantitative easing program has not done much for mortgage rates, but the resulting reach for yield is now firmly grounded in the housing market,” the company said, according to the article.

Other trends JPMorgan says to watch this year: The “shadow inventory” of distressed homes that have not yet entered the market is expected to drop as is the number of homeowners who are underwater on their mortgages.

In other news:

Equity growth signals a transition back to ‘normal’ – Daily Herald

Illinois foreclosure filings drop in February – Crain’s Chicago Business