Fannie Mae today released its National Housing Survey for the month of April. Respondents were slightly more optimistic about the direction of home prices as well as the economy in general. Today's report logged the highest level of economic confidence in the survey's history, but given that this particular survey began only two years ago, it can't be known how current figures would compare to the weaker points of 2008 through mid 2010. Read the full report here (Fannie's overview here)
The Economy and Household Finances
- Confidence in the economy's direction rose to the highest point in the survey's two-year history this month, hitting 37 percent, an increase of 2 percentage points from last month.
- Only 12 percent think that their personal financial situation will worsen in the next 12 months, consistent with February and March as the lowest value in more than a year.
- Twenty-three percent of respondents saw an increase in their personal income from 12 months ago, a 2 percentage point increase from March and the highest level recorded during the past year.
- Thirty-six percent say their expenses have increased significantly over the past 12 months, a 2 percentage point increase from last month and a return to the level recorded in January.
Homeownership and Renting
- On average, Americans expect home prices to increase by 1.3 percent over the next 12 months, up 0.4 percentage points since last month and the highest value yet recorded.
- Thirty-two percent of respondents expect home prices to increase over the next 12 months, a slight decline from the sharp spike last month.
- Thirty-nine percent of Americans say that mortgage rates will go up in the next 12 months, consistent with last month's value.
- The percentage of Americans who say it is a good time to buy decreased by 2 percentage points to 71 percent, while the percentage of respondents who say it is a good time to sell continued to increase this month to 15 percent.
- On average, respondents expect home rental prices to increase by 3.6 percent over the next 12 months, a 0.5 percentage point decrease versus last month.
- Forty-nine percent of respondents think that home rental prices will go up, a 1 percentage point increase from last month and the highest number recorded to date.
- Thirty-two percent of respondents say they would rent if they were going to move, a 2 percentage point increase from last month and the highest level since November 2011.