Consumers Respond to Housing Trends with Cautious Optimism


This article, written by Tory Barringer, puts forth the idea that the American public is very much in tune with the government’s plans for continued asset purchases tapering off in the future. While there is no doubt the housing market price rise is starting to slow the fact that the public is well aware of the government’s plans is somewhat suspect. Please read the article below and let me know what you think.

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The housing market recovery is finally starting to slow—and consumers across the country have picked up on it, according to findings in Fannie Mae’s August 2013 National Housing Survey.

“Consumer attitudes are proving consistent with recent slowing housing market trends, indicating that they are well-attuned to the direction in which the housing market is moving,” Fannie Mae said in its monthly release. “Americans’ outlook on housing growth—which has been trending upward since the beginning of the year—has hit a plateau, likely due to concerns regarding the potential tapering of the Federal Reserve’s asset purchases.”

The survey shows more people are optimistic about price gains over the next year (55 percent, up from 53 percent), though the average expected gain has pulled back slightly to 3.4 percent (compared to July’s high of 3.9 percent). The share of people expecting prices to fall bounced up to 7 percent from July’s low of 6 percent.

Sixty percent of respondents said they think mortgage rates will continue to increase over the next 12 months, down from the survey high of 62 percent.

Forty-six percent—a slight improvement over July—said they believe it would be easy for them to get a home mortgage today, though 53 percent—again, up slightly—said it would be difficult.

On the finance side: The share of respondents who said they economy is on the right track decreased from 40 percent in July to 37 percent in August. Meanwhile, 57 percent said the economy is on the wrong track.

To read the complete article – please use the link below.

Consumers Respond

Explore posts in the same categories: Real Estate Market Trends

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