WASHINGTON, June 9, 2014 /PRNewswire/ -- Americans'
concerns about the direction of the economy and their household
income appear to be weighing on housing growth, according to
results from Fannie Mae's May 2014
National Housing Survey. The share of respondents who still believe
the economy is headed in the wrong direction remained at 57 percent
last month, and those who said their household income is
significantly higher than it was at the same time last year
decreased four percentage points to 21 percent. Although
respondents' attitudes toward housing have been generally positive
during the past few months, their reluctance to enter the home
buying or selling market has restrained activity below typical
seasonal trends.
"Consumers' lukewarm income expectations and reticence about the
economy seem to be holding back housing demand," said Doug Duncan, senior vice president and chief
economist at Fannie Mae. "This year's spring and summer home buying
season has gotten off to a slow start, even as mortgage rates have
trended lower over the past two months. Our National Housing Survey
data show that economic conditions continue to be the top concern
among consumers who think it's a bad time to buy or sell a home.
While recent housing activity suggests that the worst of the
housing slump may be behind us, this caution among consumers
supports our expectation that the rebound in home sales will likely
be too modest to pull sales for all of 2014 ahead of last
year."
SURVEY HIGHLIGHTS
Homeownership and Renting
- The average 12-month home price change expectation remained
unchanged from last month, at 2.9 percent.
- The share of respondents who say home prices will go up in the
next 12 months fell to 48 percent, and the share who say home
prices will go down increased to 7 percent.
- The share of respondents who say mortgage rates will go up in
the next 12 months continued on a downward trend, dropping to 49
percent.
- Those who say it is a good time to buy a house fell slightly to
68 percent, and those who say it is a good time to sell a house
increased to 43 percent, a new all-time survey high.
- The average 12-month rental price change expectation decreased
slightly to 3.9 percent.
- Fifty-one percent of those surveyed said home rental prices
will go up in the next 12 months, while 3 percent of respondents
said home prices will go down.
- Forty-nine percent of respondents thought it would be easy for
them to get a home mortgage today, rising 4 percentage points from
last month.
- The share who say they would buy if they were going to move
increased slightly to 66 percent.
The Economy and Household Finances
- The share of respondents who say the economy is on the right
track increased 3 percentage points from last month to 38
percent.
- The percentage of respondents who expect their personal
financial situation to get better over the next 12 months fell
slightly to 42 percent.
- The share of respondents who say their household income is
significantly higher than it was 12 months ago decreased 4
percentage points to 21 percent.
- The share of respondents who say their household expenses are
significantly higher than they were 12 months ago decreased 5
percentage points to 34 percent.
The most detailed consumer attitudinal survey of its kind, the
Fannie Mae National Housing Survey polled 1,000 Americans via live
telephone interview to assess their attitudes toward owning and
renting a home, home and rental price changes, homeownership
distress, the economy, household finances, and overall consumer
confidence. Homeowners and renters are asked more than 100
questions used to track attitudinal shifts (findings are compared
to the same survey conducted monthly beginning June 2010). Fannie Mae conducts this survey and
shares monthly and quarterly results so that we may help industry
partners and market participants target our collective efforts to
stabilize the housing market in the near-term, and provide support
in the future.
For detailed findings from the May
2014 survey, as well as a podcast providing an audio
synopsis of the survey results and technical notes on survey
methodology and questions asked of respondents associated with each
monthly indicator, please visit the Fannie Mae Monthly National
Housing Survey page on fanniemae.com. Also available on the site
are in-depth topic analyses, which provide a detailed assessment of
combined data results from three monthly studies. The May 2014 Fannie Mae National Housing Survey was
conducted between May 1, 2014 and
May 21, 2014. Most of the data
collection occurred during the first two weeks of this period.
Interviews were conducted by Penn Schoen Berland, in coordination
with Fannie Mae.
Opinions, analyses, estimates, forecasts, and other views of
Fannie Mae's Economic & Strategic Research (ESR) Group included
in these materials should not be construed as indicating Fannie
Mae's business prospects or expected results, are based on a number
of assumptions, and are subject to change without notice. How this
information affects Fannie Mae will depend on many factors.
Although the ESR Group bases its opinions, analyses, estimates,
forecasts, and other views on information it considers reliable, it
does not guarantee that the information provided in these materials
is accurate, current, or suitable for any particular purpose.
Changes in the assumptions or the information underlying these
views could produce materially different results. The analyses,
opinions, estimates, forecasts, and other views published by the
ESR Group represent the views of that group as of the date
indicated and do not necessarily represent the views of Fannie Mae
or its management.
Fannie Mae enables people to buy, refinance, or rent a
home.
Visit us at
http://www.fanniemae.com/progress.
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SOURCE Fannie Mae