Consumers eye housing market, residential financing conditions
Posted on Monday, September 9, 2013 at 12:13:17 PM
Many things weigh on homebuyers' minds these days, and more people are very conscious about the current conditions affecting the housing market, including upcoming changes by the Federal Reserve.
Consumers are closely watching residential financing rates and other market indicators, according to the recent Fannie Mae National Housing Survey. Overall outlook had been trending positively for a while, but it slowed down in August.
"The spike in mortgage rates associated with the possibility that the Fed will begin to wind down its asset purchase program later this month has dampened the improving trend in consumer sentiment regarding housing witnessed in our survey since the start of this year," said chief economist of Fannie Mae Doug Duncan.
In addition, 46 percent of the survey group believe that it would be easy to acquire residential financing, an increase from July. However, about 2 percent more people also feel that home prices will increase over the next year.
The current conditions have affected every demographic, but one segment that has been particularly hard hit has been younger buyers. People between the age of 25 and 34 may not be eager to purchase real estate, according to Zillow. Lack of quality employment and the ease living with parents provides might be motivating people from staying out of the market.