Americans are increasingly more optimistic about the direction of the housing market, according to a monthly survey of more than 1,000 Americans conducted by Fannie Mae.
The majority of those surveyed expect home prices to rise 1.6 percent in the next year. Also, about 18 percent of those surveyed say now is a good time to sell, which is the highest percentage since the survey was initiated.
“Consumer attitudes toward the housing market remain modestly positive, despite signs of increased concern over the direction of the economy,” says Doug Duncan, chief economist at Fannie Mae. “While the latest results showed a pickup in the share of consumers expecting mortgage rates to rise, reflecting the uptrend of long-term interest rates since mid-July, that may soon change.”
About 40 percent of those surveyed expect mortgage rates to rise in the next year.
While the majority were upbeat about housing, they are increasingly pessimistic about the direction of the economy. Sixty percent of those surveyed say they think the economy is heading in the wrong direction. What are your thoughts about this survey?
Source: “Fannie Mae: Housing Market Attitudes Improve Despite Increased Concern About Economy,” Dow Jones (Sept. 10, 2012)