A recent Fannie Mae survey shows that homeowners are more confident in the U.S. economy and, specifically, in the U.S. housing market overall.
Rising home prices and rock-bottom mortgage rates have combined to raise over 11 key indicators and has the government-backed mortgage backer expected a big 2013 for home sales and mortgage originations.
Survey results are based on more than 1,000 household interviews.
Fannie Mae's National Housing Survey shows an American public feeling better about housing. There's a bevy of hard data which helps explain why.
For example, the Federal Housing Finance Agency (FHFA) Home Price Index shows home values up 1.1% between the second and third quarters this year, and the Case-Shiller Index shows home values up 2.2% over the same period of time.
Homeowners can benefit from rising home prices.
In addition, there is the following :
A growing U.S. workforce has been a driver of the housing market. With more than 4.6 million jobs recovered since 2010, more working Americans results in a larger home buyer pool. With a paycheck and verifiable income, a renter can become a homeowner; and a homeowner can "move-up", as needed.
Another factor has been ultra-low mortgage rates.
Since the start of the year, the average conforming 30-year fixed rate mortgage has been under 4.000 percent. Since September 2012, it's been below 3.500. Recently, it moved as low as 3.31 percent, on average.
Low mortgage rates make home payments more affordable, and help build consumer confidence.
The Fannie Mae Housing Survey uncovered improving attitudes about the U.S. economy and the housing market, in general.
For example, although half of the surveyed households said the economy was on "the wrong track", this marked a 25-point improvement over last year when close to seventy-five percent of surveyed households thought it.
In addition, Fannie Mae reports a large jump in the number of households which believe the economy is on "the right track". This may be correlated with Fannie Mae's finding that 21% of U.S. households have significantly higher income as compared to last year.
Regarding home prices and mortgage rates :
And, lastly, nearly 1 in 4 homeowners think that now is a good time to see a home -- the highest rate since Fannie Mae's first survey, taken in June 2010.
For today's home buyers and would-be refinancing households, mortgage rates remain low. It makes for cheap housing payments and excellent refinance opportunities. Whether via HARP, the FHA Streamline Refinance, the VA IRRRL or something conventional, the year-end market remains buyer-friendly. Get started with a rate quote online.
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
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2014 Conforming & FHA Loan Limits
Mortgage loan limits for every U.S. county,
as published by Fannie Mae & Freddie Mac, and the FHA.