We can talk all day about how mortgage rates are looking great and holding, but what really matters is how people are responding to these low rates. Now we have some solid statistics to show us that people are just as optimistic about the current housing market as they are with our current mortgages rates. Mortgage News Daily offers an extensive analysis of Fannie Mae’s monthly telephone survey which asks just over 1,000 homeowners and renters their thoughts on everything housing related.
This month’s survey, which contains over 100 questions, shows that views on the housing market stayed almost the same from February to March, which is good because they’re optimistic. The graph used in the article indicated that 71% of individuals surveyed believe that now is the time to buy a new home, while 26% believe it’s a good time to sell; this is nearly double the percentage from this point last year.
While many of the statistics presented in this article show a hopeful viewpoint from consumers, there seems to be a growing skepticism towards the housing market staying this good for a while. There was a slight bump in the percentage of those surveyed who believe that home prices will increase over the next 12 months, and while those who think prices will go down hasn’t adjusted much, those who believe prices will stay the same has decreased five percent in the past three months. The article cites Senior Vice President and Chief Economist of Fannie Mae, Doug Duncan, with his best insight on why the consumers are feeling this way:
“While the survey shows a string of 17 positive one-year-ahead home price expectations through March, the average expected gains have remained below 3 percent. By comparison, main measures of national home prices in early 2013 posted year-over-year gains of at least double or triple that figure.”
Based on this survey, it seems people are aware the market is getting better but are also concerned with it not staying this good for the rest of the year. I’m not saying consider refinancing or locking in a mortgage while rates are this low; however, people are speculating that the market may get more competitive by the end of the year. I’ve been saying that after seeing the PMMS reports for the past month. In either case, read whole article here for more insight and an extended look at Fannie Mae’s monthly report.