Consumers take encouraging view of U.S. mortgage market
Posted on Tuesday, February 11, 2014 at 9:37:42 AM
Consumers across the U.S. are often eager to take a negative view when it comes to a number of things, including the mortgage market. However, this isn't the case at the moment, according to Fannie Mae's January 2014 National Housing Survey.
Now, more Americans think that it would be relatively simple to get residential financing, a 2 percent increase compared to the most recent poll, while the portion of respondents who noted that it would be difficult declined. This outlook is good for the segment as a whole, as more consumers interested in mortgages could help drive further recovery.
Doug Duncan, senior vice president and chief economist at Fannie Mae, stated that the percentage of people who view residential financing favorably hit its highest peak since the survey began more than three years ago.
With that said, consumers still have to decide which type of mortgage is best for them. There are two main types - an adjustable-rate variant and a fixed-rate one. According to Zillow, ARMs typically have a lower interest rate, but that will change after time. Therefore, these types could be beneficial for buyers who plan to move after a short period, while an FRM could be for those who want to live in one place longer.