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Confidence in housing market waning: Fannie Mae
April 10, 2015
WASHINGTON (4/13/15)--Consumers are feeling less confident in the housing market, a recent poll from Fannie Mae has found, especially as confidence in their own finances has remained flat.
The number of Americans who expect their personal financial situations to improve over the next 12 months dropped to 41% in March, according to the poll, while the number of those who said they would buy a home if they decided to move dropped by 5%, to 60%, an all-time low for the Fannie Mae survey (Realtor Mag April 8).
Further, the percentage of those who said their household income climbed significantly on an annual basis dropped to 22%.
"Consumers are being patient prior to entering the housing market," said Doug Duncan, Fannie Mae chief economist. "Our March survey results emphasize how critical attitudes about income growth are to consumers' outlook on housing.
"We've seen modest improvement in total compensation resulting from a strengthened labor market. However, income growth perceptions and personal financial expectations both eased off of recent highs."
Some confidence remains, however, as the number of Americans who said that now is a good time to sell a home rose to 46% in March, a survey high.
Additional survey data:
Consumers expect home prices to climb over the next year, with the average home-price change expectation at 2.7%;
The share of those who believe it's easy to obtain a mortgage today dropped by 4%, to 50%,
while the share of those who believe it's difficult to obtain a mortgage climbed by 3%, to 46%;
The share of those who believe mortgage rates will increase in the next 12 months increased to 52%; and
The share of consumers who believe rent prices will continue to climb rose to 53%.