Americans interviewed by Fannie Mae are generally more optimistic about housing with 35% of those surveyed saying home prices will rise in the next 12 months, according to the GSE’s June National Housing Survey.
But while low mortgage rates and property prices are causing consumers to jump in and buy, Americans overall remain concerned about the overall economy.
Doug Duncan, chief economist with Fannie Mae, says Americans may be looking at buying a home as a cheaper option with rents rising, but this trend could be short-lived if the economy falters.
About 37% of the survey respondents expect mortgage rates will go up within the next year, a four-percentage point decline from the previous month.
Interview subjects who expect their personal financial situations to remain the same over the next year fell by 4 percentage points to 42%. Meanwhile, those who expect their situations to get better hit 43%.
About 55% of those interviewed said their overall expenses remained the same when compared to year ago levels.
