Americans Expect the Housing Market to Continue Improving
Mortgage interest rates are rising, but will higher monthly payments deter Americans from their dreams of home ownership? According to Fannie Mae's July 2013 National Housing Survey, 74 percent of respondents believed market conditions were favorable to home buyers, while 40 percent believed the current market is a good place to sell a house. Both results match the survey high.
Climbing Mortgage Rates
Sixty-two percent of survey respondents believe rates will climb in the next year. When asked if they thought it would be easy for them to get a home mortgage today, 45 percent of respondents replied positively, a two percent decrease from June's survey results.
More Cash in the Bank
Twenty-six percent of those polled thought their household income was significantly higher than a year ago, a survey high. Meanwhile, the number of consumers who calculated their household expenses to be higher than a year earlier dropped to 30 percent.
Mortgage > Rent
When asked about the future of home prices, respondents expected an average increase of 3.9 percent. The number of consumers who thought home rental prices will climb over the next year, meanwhile, decreased to 54 percent. Still, home ownership seems to be the preferred choice for most Americans; 64 percent of respondents would prefer to buy instead of rent if they were to move.
A Good Time to Do Business
According to economists at Fannie Mae, there is no correlation between interest rates and home prices, and these recent survey results prove that theory. Despite the rise in interest rates, consumers still see positive signs that the housing market is back on track. And this consumer confidence is a sign of not just a steadily improving housing market, but a steadily improving economy. Of all the survey respondents, 40 percent thought the economy was on track, an increase from June's results. If consumer expectations come to fruition, both the economy and the housing market will be growing in the years to come.