Fannie Mae’s National Housing Survey for June offered further evidence of the housing recovery, with more homebuyers looking to enter the marketplace.
According to Fannie Mae’s June 2013 National Housing Survey, mortgage rates and housing prices are perceived to be climbing, and therefore homebuyers may choose to enter the market sooner before housing costs get any higher.
Fifty-seven percent of respondents believe that mortgages will rise in the next 12 months, an 11 point increase and the highest level in the survey’s three-year history. Additionally, respondents who believe home prices will rise also reached a record 57 percent.
Those who said prices will decrease stayed at 7 percent. 72 percent of respondents said it was a good time to buy, and 36 percent said it was a good time to sell.
Fannie Mae National Housing Survey
Doug Duncan, senior vice president and chief economist at Fannie Mae, said that these results may indicate an increase in buying.
“The spike in mortgage rate expectations this month seems to have had an impact on a number of the survey’s indicators and may increase housing activity in the near term by driving urgency to buy,” he said. “Consumers may recognize that today’s still favorable mortgage rates and homeownership affordability levels will recede over time. Given rising home and rental price expectations and improving personal financial attitudes, more prospective homebuyers may be deciding that now is the time to get off the fence.”
Fifty-six percent of responders believe rental prices will increase – again, the highest in the survey’s history, and expectations for the average 12-month rental price change expectation rose dramatically from 1.2 percent to 4.6 percent. Forty-six percent of respondents also expect their financial situation to improve in the next year, which is the highest since June 2010. Those who said their household income is significantly higher rose by 6 points to a survey high of 26 percent.
Here are some survey highlights:
Homeownership and Renting
- The average 12-month home price change expectation went down 3.8 percent.
- Respondents who say home prices will rise in the next 12 months reached 57 percent, and those who said prices would fall remained at 7 percent.
- Respondents who expected rising mortgage rates were at 57 percent, an increase of 11 percentage points.
- Seventy-two percent of respondents say it is a good time to buy, and 36 percent say it is a good time to sell.
- The average 12-month rental price expectation rose dramatically to 4.6 percent from 1.2 percent last month.
- Fifty-six percent of respondents say rental prices will rise in the next 12 months, which is an increase of 8 percent.
- Forty-seven percent of respondents think it would be easy for them to get a home mortgage.
- Those interviewed who said they would buy if they were going to move went down to 65 percent, a slight decrease.
The Economy and Household Finances
- The number of respondents who say the economy is on the right track went down by 2 percent to 38 percent.
- Forty-six percent of people expect their personal financial situation to get better, the highest level since June 2010.
- A survey high of 26 percent of respondents say their household income is significantly higher than it was 12 months ago. Thirty-six percent say their household expenses are significantly higher than they were 12 months ago.
The Fannie Mae National Housing Survey polled 1,007 Americans to survey them about homes, the economy, household finances and other matters. Homeowners and renters are asked over 100 questions, and people are polled once a month. The results are shared monthly and quarterly.