Americans more optimistic about housing and homeownership
Sep 11 2012 3:54PM
While some recent reports may have prospective buyers of real estate in Los Angeles County and surrounding areas hesitant, as mortgage rates and home prices continue to rise, a new report shows Americans are more optimistic regarding housing overall.
Fannie Mae's National Housing Survey for the month of August reveals that consumer attitudes toward the housing market continue to be positive despite a recent halt in slow-moving economic factors. The gap between buyer and seller opinions is also decreasing, as 18 percent of respondents say now is a good time to sell, the highest level in survey history. Additionally, 73 percent of those surveyed believe now is an optimal time to become a homeowner.
More Americans are also confident that home prices will continue to increase throughout the next year, as only 11 percent of respondents predict home prices will fall in the next 12 months. This is the lowest level reached since June 2010. Nearly 40 percent of those surveyed expect mortgage rates to increase within the same time period, up 4 percentage points from the previous month.
Freddie Mac's most recent Primary Mortgage Market Survey shows the average rate for 30-year fixed-rate mortgages fell to 3.55 percent while the rate for 15-year FRMs remained at 2.86 percent. Though mortgage rates recently dipped back down near record lows for the week ending September 6, industry experts predict they will continue to rise throughout the remainder of 2012 and well into 2013.