Housing Momentum Stalled by Cautious Consumers

This doesn’t come as a big surprise considering the unemployment rate, interest rate increases and home prices climbing. The fact that so many people think that their personal situation will get worse in the next 12 months is a little unexpected but not a great shocker. For a more detailed look at this subject – please read the article below.

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According to Fannie Mae’s November National Housing Survey, positive momentum in the housing market has slowed as Americans remain cautious about their personal finances and the overall state of the economy.

Nearly two-thirds of those surveyed believe the economy is on the wrong track. Twenty-two percent expect their personal finances to worsen during the next year, and only 45 percent expect home prices to increase within the next 12 months.

According to Doug Duncan, SVP and chief economist at Fannie Mae: “We continue to see caution as the defining feature of Americans’ attitudes toward the economy and their personal financial situation. In this environment, the housing recovery is likely to improve, but only at a gradual pace.”

Duncan continued: “Our November National Housing Survey results show a loss of momentum in expectations for home prices and personal finances. Also, the majority of consumers expecting higher mortgage rates implies a slowing of housing market momentum. As the economy continues to improve and household balance sheets for most Americans are slow to repair, we continue to see the transition to a full housing recovery as a slow process.”

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

Housing Momentum Stalled

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