Study Indicates Consumers Are Still Positive About Housing Despite Recent Rate Hikes
Consumer attitudes towards the housing market are increasingly positive despite the recent rise in mortgage interest rates, according to a July’s National Home Survey by Fannie Mae.
The survey found that 62 percent believe interest rates will go up over the next year, an increase of five percentage points compared to June’s survey. In addition, 53 percent of Americans expect home prices to increase by an average of 3.9 percent over the next 12 months. Only six percent expect prices to fall, a new low in the survey’s three-year history. Seventy-four percent of those surveyed say now is a good time to purchase a house, and 40 percent say now is a good time to sell.
Consumers are aware of rising rates and are bracing themselves for higher interest rates: 62 percent of survey respondents say they expect rates to rise over the next year, while only five percent expect them to fall.
Americans are slightly less upbeat about homeownership. Only 45 percent feel it would be easy for them to obtain a home mortgage, down two percentage points, and there was a slight decrease to 64 percent of those who indicated they would buy if they were going to move. Three percent fewer people expect their personal financial situation to improve over the next year but the percentage of those reporting significantly higher household expenses fell from 36 percent to 30 percent.
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