WASHINGTON, Jan. 7, 2015 /PRNewswire/ -- Americans are
becoming more optimistic about the economy, but consumer confidence
toward the housing market is lagging, according to results from
Fannie Mae's December 2014 National
Housing Survey™. Likely bolstered by a strengthening employment
sector, the share of consumers who believe the economy is headed in
the right direction improved by 5 percentage points to 41 percent.
Those citing that the economy is heading in the wrong direction
declined to 51 percent, the fifth consecutive monthly decrease.
However, although the share of respondents who think it would be
easy to get a mortgage today increased to 52 percent, tying the
all-time survey high, the share who say their household income is
significantly higher than it was 12 months ago has remained flat at
25 percent.
"Despite consistent and robust job growth in recent months,
consumer attitudes toward housing remained cautious in the final
month of 2014," said Doug Duncan,
senior vice president and chief economist at Fannie Mae. "Our
survey results show that consumer housing sentiment has, on
average, been moving sideways amid some improvement in the general
view of the economy. It is not surprising that the housing sector
continues to lag behind the rest of the economy given the long-term
financial commitment that getting a mortgage represents. Many
prospective homebuyers want to be certain that their personal
finances can withstand potential downside risks to the
economy."
"One notable result in the December survey is that the share of
consumers believing that it would be easy to get a mortgage exceeds
those saying it would be more difficult to get a mortgage by the
widest amount in the survey's history," said Duncan. "While this is
a welcome signal, softness in consumer attitudes that drive housing
demand will make for a subdued recovery and should persist absent
more meaningful and sustained gains in household income."
SURVEY HIGHLIGHTS
Homeownership and Renting
- The average 12-month home price change expectation fell to 2.3
percent.
- The share of respondents who say home prices will go up in the
next 12 months rose to 46 percent. The share who say home prices
will go down increased to 8 percent.
- The share of respondents who say mortgage rates will go up in
the next 12 months rose by 3 percentage points to 48 percent.
- Those who say it is a good time to buy a house fell to 64
percent. Those who say it is a good time to sell increased by 1
percentage point to 40 percent.
- The average 12-month rental price change expectation increased
to 4.1 percent.
- The percentage of respondents who expect home rental prices to
go up in the next 12 months remained at 53 percent.
- The share of respondents who think it would be easy to get a
home mortgage today increased to 52 percent—equaling an all-time
survey high—while the share saying it would be difficult to get a
mortgage dropped to 44 percent—a survey low.
- The share who say they would buy if they were going to move
fell to 61 percent—an all-time survey low—while the share who would
rent increased 3 percentage points to 34 percent.
The Economy and Household Finances
- The share of respondents who say the economy is on the right
track increased by 5 percentage points to 41 percent.
- The percentage of respondents who expect their personal
financial situation to get better over the next 12 months decreased
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 decreased to 34
percent.
The most detailed consumer attitudinal survey of its kind,
Fannie Mae's 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 December
2014 survey, as well as 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 December 2014 National Housing Survey was
conducted between December 1, 2014
and December 14, 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
homes.
Visit us at
http://www.fanniemae.com/progress.
Follow us on Twitter:
http://twitter.com/FannieMae.
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SOURCE Fannie Mae