US homebuyers keep watchful eye on economy
Posted on Tuesday, June 10, 2014 at 9:22:20 AM
The U.S. housing market has been up and down over the past year, and consumers today are paying close attention to any fluctuations or trends that could impact affordability and residential financing rates.
According to Fannie Mae, the tight economy has constricted recent housing activity. Using information from the government-sponsored enterprise's 2014 National Housing Survey, 57 percent of respondents believe that the nation's economy is moving in the wrong direction. In addition, only 21 percent noted that their household income was increasing on a yearly basis.
"Consumers' lukewarm income expectations and reticence about the economy seem to be holding back housing demand," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "This year's spring and summer homebuying season has gotten off to a slow start, even as mortgage rates have trended lower over the past two months."
Moreover, the National Association for Business Economics' June 2014 Outlook indicated that the future is brighter for the U.S. economy.
Jack Kleinhenz, NABE president and chief economist of the National Retail Federation, explained that stronger economic growth is forecasted for the remainder of 2014.