Americans more confident in housing market, mortgage industry
Posted on Monday, December 10, 2012 at 5:40:14 PM
The housing market and mortgage industry gained considerable momentum so far this year, and this trend of improvement is expected to continue in 2013.
Next year, the average consumer expects homes prices to increase by at least 1.7 percent, according to a recent survey conducted by Fannie Mae. As a result, roughly 67 percent of respondents feel it's a good time to purchase property.
"Consumer attitudes toward both the economy and the housing market continue to gather momentum, with many of our 11 key National Housing Survey indicators at or near their two-and-a-half-year highs," said Fannie Mae senior vice president and chief economist Doug Duncan.
Meanwhile, although fixed mortgage rates hovered near all-time lows for much of 2012, roughly 41 percent of respondents believe rates will increase during the next 12 months, the report said.
Should this occur, prospective borrowers may have to examine a mortgage comparison chart to ensure they get the best possible deal when making the transition to homeownership. In addition, the majority of respondents said they believe it's easier to obtain a mortgage than in recent years, which could further contribute to consumer activity in the industry next year.