October 12th, 2011 11:49 PM by Lehel S.
WASHINGTON, DC – Americans are still very pessimistic about the economy, home prices, and household finances, according to results from Fannie Mae's September National Housing Survey. Findings demonstrate that consumers are paying close attention to economic news and what policymakers are saying, and continue to link their personal financial situations with the current macro economic environment.
“The September survey showed a marked deterioration in consumer expectations of home prices over the next year—their weakest outlook since monthly tracking began in June 2010,” said Doug Duncan, vice president and chief economist of Fannie Mae. “Despite a decline in negative economic headlines during September – in contrast to their ubiquity during the debt ceiling debate in August – consumers continue to demonstrate very negative attitudes. At the same time, the share of consumers expecting mortgage rates to go up dropped sharply to the lowest level we have recorded, likely influenced by the news that the Federal Reserve will attempt to keep interest rates low for years to come.”
“The lack of a sense of urgency to buy homes, given expectations for further declines in home prices and continued low mortgage rates, coupled with general pessimism regarding their own personal finances and the economy, bodes poorly for the recovery of the housing market,” Duncan stated.
Homeownership and Renting
The Economy and Household Finances