Survey: Housing hopes on the rise

Article courtesy of MarketWatch

Despite continued uncertainty surrounding the fiscal cliff, Americans are showing increased confidence in the housing market and the direction of the economy, according to government-controlled mortgage giant Fannie Mae .

“Consumer attitudes toward both the economy and the housing market continue to gather momentum, with many of our 11 key National Housing Survey indicators at or near their two-and-a-half-year highs,” said Doug Duncan, senior vice president and chief economist of Fannie Mae. “On the housing front, attitudes about the current selling environment continue to improve, with a significant increase in those saying it would be a good time to sell.”

Mr. Duncan added that those indicating that the economy is on the right track have risen to 44% while those saying it is on the wrong track have fallen to 50%, the smallest gap since the survey’s inception.

The share of respondents who say now is a good time to sell a home jumped five percentage points in November to 23%–the highest level since the survey began in June 2010–narrowing the gap with those who say it is a good time to buy.

Fannie Mae also said the proportion of respondents who expect mortgage rates to go up increased by four percentage points to 41%. Those expecting home prices to go down within the next year also rose by four percentage points to 14% over last month, a rebound from the survey’s record low in the prior month, while the share who believe home prices will go up in the next 12 months edged up to 37%, tying the survey high.

Additionally, 51% of respondents now say it would be easy to get a mortgage, marking the highest rate since the survey’s inception.

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