Consumers Have Mixed Feelings About Housing Market

Consumers Have Mixed Feelings About Housing Market

Consumers Have Mixed Feelings About Housing Market

A survey conducted by Fannie Mae shows that many Americans feel that the housing market has fallen to it’s lowest point, but they are still somewhat afraid to purchase a home. Almost 50 percent believe that prices will stay steady or increase, as well as believing in increased or steady rent prices. Rent is thought to rise 3.6 percent over the 0.9 percent consumers believe home prices will rise.

While 70 percent of survey respondents agree that it is a good time to purchase a new home, 33 percent stated that they would rather rent their next living space instead of purchasing it outright. This indicates a very mixed outlook towards the housing market, according to Doug Duncan, Chief Economist and Vice President of Fannie Mae. This new outlook may be more realistic and balanced than the overly optimistic expectations people had of the housing market before it began to fall.

Experts from Fannie Mae hopes that this new caution will lead to homeowners who focus on sustainable and more realistic borrowing amounts. Despite the low home prices, many Americans are taking a good look at their personal finances instead of jumping to secure a mortgage they aren’t sure they’ll be able to afford. The majority still believe that a house is a safe investment purchase, but that percentage has dropped 16 percent since 2003.

Delinquent renters and borrowers are much more discouraged about the benefits of owning over renting. Over 70 percent of the survey respondents agreed that it will be more difficult for the new generation of homeowners to purchase a home. This survey, administered by mortgage lender Fannie Mae, contacted homeowners and renters through June and July of 2010 about their feelings and beliefs about the housing market. The results were compared to survey results from December 2009 and 2003.


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