October 9th, 2012
Housing analysts have long argued that consumer sentiment and demand for new and existing homes will play a crucial role in housing market recovery. New data shows that Americans' attitudes about the market are slowly turning around as consumers become more confident in the housing industry.
According to Fannie Mae's September 2012 National Housing Survey, mortgage rate increases and strengthening home prices have elicited more confidence from Americans about homeownership. Participants responded that they expect home prices to increase an average of 1.5 percent over the next year, and the number of individuals who think mortgage rates will increase during that period declined 7 percentage points to 33 percent. Further, 69 percent of respondents said they would buy a home if they planned to move.
"Consumers are showing increasing faith in the nascent housing recovery," said Doug Duncan, senior vice president and chief economist of Fannie Mae. "Home price change expectations have remained positive for 11 straight months, and the share expecting home price declines has stabilized at a survey low of only 11 percent."
Americans who are planning to purchase a home in the near future should work closely with a mortgage consultant to compare home prices, mortgage rates and neighborhood amenities before making a decision.