News Column

Consumers turn cautious on home buying

January 1, 2014


Fannie Mae's November National Housing Survey found the share of consumers who say now is a good time to buy a home hit a survey low of 64 percent. And that was not the only sign that consumers have adopted a gloomier outlook. Fannie's November survey results found that nearly two-thirds believe the economy is on the wrong track. The company reported also that the share of respondents expecting their personal finances to worsen during the next year has increased during the past few months to 22 percent. In a press release announcing the November results, Fannie Mae noted, "The share of those who expect mortgage rates to climb in the next 12 months has remained at an elevated level since it spiked in June." Doug Duncan , senior vice president and chief economist at Fannie Mae , said, "Our November National Housing Survey results show a loss of momentum in expectations for home prices and personal finances. Also, the majority of consumers expecting higher mortgage rates implies a slowing of housing market momentum. As the economy continues to improve and household balance sheets for most Americans are slow to repair, we continue to see the transition to a full housing recovery as a slow process." Other findings reported by Fannie Mae included the fact that the share of respondents who said they would buy if they were going to move declined slightly in November to 68 percent. Also, the share of respondents saying their household income is significantly lower than it was a year ago increased slightly to 17 percent. The share of survey respondents who expect their personal financial situation to get worse in the next 12 months held steady at 22 percent.

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Source: Mortgage Banking

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