WASHINGTON, March 10, 2014 /PRNewswire/ -- Americans' outlook
on housing and the economy has fluctuated somewhat during the past
few months, but the trend for most indicators remains positive
overall, according to Fannie Mae's February
2014 National Housing Survey results. Notably, respondents'
home price expectations climbed significantly in February – with 50
percent saying home prices will go up in the next year – following
a measurable downturn in January, while the share of those who
believe it is a good time to buy a home ticked up by 3 percentage
points. At the same time, those who believe that it would be easy
to get a mortgage dropped 7 percentage points from January's
all-time survey high of 52 percent. Additionally, the share of
respondents who say the economy is on the wrong track increased 3
percentage points to 57 percent in February, following a four-month
decline. Despite a decrease in optimism across some of the
indicators last month, consumer attitudes remain in generally
positive ranges.
"Similar to the noisy economic and housing data published over
the past few months, we've seen a corresponding increase in
volatility in our survey results, particularly for home price
expectations and perceptions about the ease of getting a mortgage,"
said Doug Duncan, senior vice
president and chief economist at Fannie Mae. "Weather may have
played a role, as suggested by a 6 percentage point jump over the
past two months in the share of consumers who say their household
expenses are significantly higher than a year ago. This response
would be consistent with higher home heating costs. Despite the
volatile month-to-month changes, we believe that the housing
recovery is continuing, but is not yet robust."
SURVEY HIGHLIGHTS
Homeownership and Renting
- The average 12-month home price change expectation increased
from last month, to 3.2 percent.
- The share of people who say home prices will go up in the next
12 months increased 7 percentage points to 50 percent, while the
share who say home prices will stay the same decreased by seven
percentage points to 38 percent.
- The share of respondents who say mortgage rates will go up in
the next 12 months increased by 1 percentage point, to 56
percent.
- Those who say it is a good time to buy a house increased from
last month, up 3 percentage points to 68 percent.
- The average 12-month rental price change expectation increased
from last month to 4.3 percent.
- Fifty-one percent of those surveyed said home rental prices
will go up in the next 12 months, an increase of 3 percentage
points from last month.
- Forty-five percent of respondents thought it would be easy for
them to get a home mortgage today, a 7 percentage point decrease
from last month.
- The share who say they would buy if they were going to move
fell 4 percentage points to 66 percent, and those who say they
would rent increased to 30 percent.
The Economy and Household Finances
- The share of respondents who say the economy is on the right
track decreased 4 percentage points from last month to 35
percent.
- The percentage of respondents who expect their personal
financial situation to get better in the next 12 months decreased
slightly from last month, to 43 percent.
- The share of respondents who say their household income is
significantly higher than it was 12 months ago increased 2
percentage points to 24 percent.
- At 36 percent, the share of respondents who say their household
expenses are significantly higher than they were 12 months ago rose
4 percentage points from last month.
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 February
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
February 2014 Fannie Mae National
Housing Survey was conducted between February 1, 2014 and February 23, 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