Consumer confidence in the housing market has trended upward significantly during the recovery but continues to be less than needed to return to “normal” housing levels, according to results from Fannie Mae’s June 2014 National Housing Survey. On average, consumers’ 12-month home price-change expectation remained in positive territory in June at 2.4 percent but dipped slightly from the previous few months, likely in response to a lackluster housing picture in the first half of the year. Additionally, the share of respondents who expect mortgage rates to go up in the next year increased six percentage points to 55 percent in June following a gradual decrease since February. While consumers appear positive overall and are trending in that direction, some survey and market indicators reflect a more subdued housing market, underscoring that the recovery continues but is not yet robust.
• The average 12-month home price-change expectation fell to 2.4 percent.
• The share of respondents who say home prices will go up in the next 12 months fell to 46 percent, and the share who say home prices will go down increased to 10 percent.
• The share of respondents who say mortgage rates will go up in the next 12 months increased six percentage points to 55 percent.
• Those who say it is a good time to buy a house rose to 70 percent, and those who say it is a good time to sell a house fell to 40 percent.
• The average 12-month rental price change expectation increased to 4.3 percent.
• The percentage of respondents who expect home rental prices to go up increased to 54 percent.
• Fifty-two percent of respondents thought it would be easy for them to get a home mortgage today— matching the all-time high.
• The share who say they would buy if they were going to move increased slightly to 68 percent.
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