WASHINGTON, Nov. 7, 2014 /PRNewswire/ -- Results from Fannie
Mae's October 2014 National Housing
Survey show Americans' optimism about the housing market continued
its gradual climb amid greater confidence in household income and
personal finances. The share of respondents who say they expect
their personal financial situation to improve during the next 12
months climbed to 45 percent – seven points higher compared to one
year ago – while the share expecting their financial situation to
worsen decreased to 10 percent last month. Although consumer
attitudes about the direction of the economy remain subdued, with
only 40 percent of survey respondents saying the economy is on the
right track, the October results mark a 13 percentage point
improvement compared to the same time last year.
"Consumers are growing more optimistic about the housing market
in the face of broader improvement in economic sentiment," said
Doug Duncan, senior vice president
and chief economist at Fannie Mae. "The share of consumers who
expect their personal finances to get better is near its highest
level since the survey's inception, while those expecting their
finances to get worse reached a survey low. Home price expectations
rose significantly this month, largely reversing the dip witnessed
over the past four months, and the share of consumers who think
it's a good time to sell a home reached another survey high. The
narrowing gap between home buying and home selling sentiment may
foreshadow increased housing inventory levels and a better balance
of housing supply and demand. These results may help drive a
healthier housing market in 2015."
SURVEY HIGHLIGHTS
Homeownership and Renting
- The average 12-month home price change expectation rose to 2.8
percent.
- The share of respondents who say home prices will go up in the
next 12 months fell by one point to 44 percent. The share who say
home prices will go down decreased by one point to 7 percent.
- The share of respondents who say mortgage rates will go up in
the next 12 months rose by three percentage points to 48
percent.
- Those who say it is a good time to buy a house fell to 65
percent. Those who say it is a good time to sell increased to 44
percent—a new all-time survey high.
- The average 12-month rental price change expectation rose to
3.7 percent.
- The percentage of respondents who expect home rental prices to
go up in the next 12 months decreased by six percentage points to
49 percent.
- The share of respondents who think it would be difficult to get
a home mortgage today increased by two percentage points.
- The share who say they would buy if they were going to move
fell to 65 percent, while the share who would rent increased to 30
percent.
The Economy and Household Finances
- The share of respondents who say the economy is on the right
track held steady at 40 percent.
- The percentage of respondents who expect their personal
financial situation to get better over the next 12 months increased
to 45 percent.
- The share of respondents who say their household income is
significantly higher than it was 12 months ago remained at 25
percent.
- The share of respondents who say their household expenses are
significantly higher than they were 12 months ago fell slightly to
36 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). To reflect the growing share of
households with a cell phone but no landline, the National Housing
Survey has increased its cell phone dialing rate to 60 percent as
of October 2014. For more
information, please see the Technical Notes. 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 October
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 October 2014 Fannie Mae National Housing Survey
was conducted between October 1, 2014
and October 25, 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.
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http://www.fanniemae.com/progress.
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SOURCE Fannie Mae