Latest Fannie Mae Survey Shows Positive Housing Outlook

Fannie Mae has just released their May 2015 National Housing Survey, which asked 1,000 consumers for their views and attitudes about home ownership. The results? Attitudes and incomes are both strengthening. In fact, 28% of those surveyed reported significant income growth in the past 12 months, up six percent in the last two months and nearing an all-time high. Naturally, an increase in income reflects positively on the future of the housing market. Even so, income growth wasn't the only good news in the survey!

Consumers also reported rising confidence regarding buying and selling their homes. At 49%, the proportion of those surveyed who believe now is a good time to sell a home reached an all-time high in May, six percentage points higher than a year ago. The outlook on buying compared to renting rose by three points, with 66% preferring to buy on their next move.

Doug Duncan, the senior vice president and chief economist at Fannie Mae, sees these numbers as a good sign for the future. "We have found that these two indicators – good time to sell and income growth – are key drivers for the performance of the housing market. The increase in these indicators suggests our forecast of moderate improvement in the housing market in 2015 is on course and mirrors the near-term performance of other leading market data, including mortgage applications and pending home sales."

The survey examined several other issues as well, finding that consumers believe home prices will rise 2.8% on average in the next year compared to 4.3% increases in rental prices. Less than half of respondents believe mortgage rates will go up (47%), mirroring the number that believe it would be difficult to get a mortgage (46%).

Source: Americans' Housing Optimism Gains More Momentum amid Reported Income Growth; Supports Forecast of Pickup in Housing Activity This Year