Consumers optimistic about future home prices

January 7th, 2013

An estimated 43 percent of consumers expect home prices to increase in the next 12 months.

Numerous Americans anticipate home prices will rise significantly in the coming months. As a result, this could increase the demand for home mortgages.

During the course of 2013, an estimated 43 percent of consumers expect home prices to increase, according to a recent survey conducted by Fannie Mae. The average respondent expects property values to appreciate 2.6 percent.

“The highest share of consumers in the survey’s two-and-a-half-year history expect home prices to increase in the next 12 months,” said Fannie Mae vice president and chief economist Doug Duncan. “This view is consistent with Fannie Mae’s expectation that home prices will rise going forward on a national basis.”

Although the prospect of purchasing a home may become slightly less affordable in the near future, this added cost could be offset by fixed mortgage rates hovering near all-time lows.

During the week ending January 3, the average rate for a 30-year fixed-rate mortgage fell to 3.34 percent, down from 3.35 percent, according to Freddie Mac. Meanwhile, the average rate for a 15-year fixed-rate mortgage hit 2.64 percent, which was a decline from 2.65 percent a week earlier.