Americans are feeling increasingly optimistic about the
direction of the housing market, despite growing wariness about the
overall economy and their own personal finances.
That's according to the June National Housing Survey from
, released today. The monthly survey found that growing numbers of
consumers say they expect home prices will increase over the coming
year, even as fewer expressed confidence that the economy is on the
More expect rising prices
Consumers surveyed said they expect home prices to rise by a
full 2 percent over the coming year, a 0.6 percentage point
increase from May's survey and the highest figure reported since
Fannie Mae began taking the survey two years ago.
Thirty-five percent said they expect to see housing prices
increase over the coming year, also the highest figure reported
since the survey was first taken in June 2010, and up from 34
percent the previous month.
Meanwhile, the share of borrowers who said they think the
economy is on the right track, which had been increasing in recent
months, held steady at 36 percent in the current survey. Meanwhile,
the number who said they expect their personal financial situation
to remain unchanged over the coming year fell 4 points to 42
percent, while the number who expect their situation to improve
steadied at 43 percent.
Will home sales follow?
"While consumers remain cautious about the general economy,
their attitudes toward the housing market continue to improve,"
said Doug Duncan, Fannie Mae chief economist. "Although this
positive trend may be short-lived if the general economy falters,
one might ask whether consumers are increasingly seeing the current
environment as a unique opportunity to buy a home while home prices
remain depressed, rental costs are increasing, and interest rates
are near historic lows."
Meanwhile, fewer consumers now believe that mortgage rates will
reverse course and increase over the next 12 months. Thirty seven
percent said they think rates will rise over the coming year, down
from 41 percent in May. Just under half, 49 percent, expect rates
to remain unchanged.
The share of those who think it is currently a good time to buy
a home continues to rise, hitting 73 percent in the current survey,
the highest level reported in the survey's two-year history.
First published on MortgageLoan.com at: