Consumer Jitters Slow Home Sales A new survey from mortgage funder Fannie Mae shows that concerns about the economy and household income are causing many Americans to hold off on the purchase of a home. Fannie Mae said that, in its May 2014 National Housing Survey, the share of respondents who still believe the economy is headed in the wrong direction remained at 57% last month. A smaller percentage of Americans reported that their household income is significantly higher than it was at the same time last year, (at 21%, down 4%). These factors have caused many to feel reluctant to enter the home buying or selling market, causing market activity to fall below typical seasonal trends. Many people feel that the frenzied price increases of last year have stabilized. For instance, fewer people responding to Fannie Mae’s latest survey (versus last year’s survey) felt that prices would rise in the next 12 months, and a bigger percentage felt they would fall. Also, a smaller percentage than last year felt that mortgage rates would rise. With these results, it’s clear that people are feeling less pressured to buy homes, even as they have increasing concerns about their own financial situations. Call it a “double whammy” of sentiments causing many Americans to shun housing markets this spring. Copyright Today’s Credit Unions Link: fanniemae #HomeSalesMay
Posted on: Wed, 18 Jun 2014 18:30:00 +0000
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