Consumer Survey Reveals Optimism about Housing Market
Washington, DC, March 12, 2015—Amid continued strengthening in employment, consumer optimism toward the economy is growing and appears to be contributing to further improvement in overall housing sentiment, according to results from Fannie Mae's February 2015 National Housing Survey.
The share of respondents who believe the economy is headed in the right direction increased 3 percentage points last month to an all-time survey high of 47%, while the share who believe it is headed in the wrong direction decreased to 45%, a new survey low.
Additionally, the share who believe it would be easy to get a home mortgage today increased to a record-high 54% while a survey low 43% think it would be difficult to get a mortgage.
In addition, the survey revealed that
• The average 12-month home price change expectation remained at 2.5%.
• The share of respondents who say home prices will go up in the next 12 months fell to 46%. The share who say home prices will go down fell to 6%.
• The share of respondents who say mortgage rates will go up in the next 12 months increased back to 48%.
• Those who say it is a good time to buy a house remained at 67%. Those who say it is a good time to sell decreased by 4 percentage points to 40%.
• The average 12-month rental price change expectation increased to 4%.
• The percentage of respondents who expect home rental prices to go up in the next 12 months remained at 52%.
• The share who say they would buy if they were going to move fell 1 percentage point to 65 percent, while the share who would rent remained at 29 percent.
• The percentage of respondents who expect their personal financial situation to get better over the next 12 months fell to 46%.
• The share of respondents who say their household income is significantly higher than it was 12 months ago fell 5 percentage points to 24%.
• The share of respondents who say their household expenses are significantly higher than they were 12 months fell to 31%.