Experts, homebuyers more confident about US housing market [VIDEO BLOG]
Posted on Monday, January 19, 2015 at 9:51:51 AM
Since the Great Recession, the housing market recovery hasn't exactly gone to plan. There have been plenty of ups and downs, and it seems that each month consumer confidence moves in one direction or the other.
Even so, it appears that there are a number of reasons to be excited about 2015's housing market. According to the American Bankers Association, bank economists are particularly bullish about the new year. They believe that the economy will improve by roughly 3 percent compared to last year's growth.
In addition, the bankers polled feel that residential financing rates will only increase slightly during the coming 12 months, while more Americans will view homeownership as a smart decision.
"With home prices on the rise, families are once again viewing homes as good investments," said Ethan Harris, of Bank of America Merrill Lynch, New York, and chairman of the Economic Advisory Committee of the ABA. "Even if mortgage interest rates rise some this year, more people are going to want to buy a first or larger home."
However, Fannie Mae reported in its December 2014 National Housing Survey that Americans are more confident about the U.S. economy, but less so about the housing market in particular. While some people are confident, caution reigned supreme heading into 2015.