Housing recovery slows as consumer sentiment dips
Posted on Friday, August 8, 2014 at 9:35:42 AM
While the recent trends in the housing market have been largely positive, with affordable residential financing rates, slower home price growth and other strong conditions, the overall recovery is struggling as consumer sentiment ticks down.
According to Fannie Mae's July 2014 National Housing Survey, Americans remain concerned about the current state of the housing market, but their personal finances could help encourage growth in the near future.
"The continued cautious sentiment expressed across the range of consumer indicators this month gives weight to our view that the first phase of the housing recovery is decelerating, and 2014 will be a year of mixed housing outcomes with home prices rising more slowly and home sales falling slightly," said Doug Duncan, senior vice president and chief economist at Fannie Mae.
The government-sponsored enterprise reported that the number of consumers who expect home prices to climb in 2015 dropped to 42 percent of all survey participants.
Attitude about the current economy is one reason why so many are worried about the housing market. According to a Thomas Reuters and University of Michigan consumer sentiment reading, July's level was lower than expectations and June's figure.