Fannie Mae: Americans remain pessimistic on housing, economy and finances

The Fannie Mae September National Housing Survey found Americans remain very pessimistic about the economic climate, home prices and household finances, as consumers are paying close attention to economic news and what policymakers are saying. The findings suggest Americans are linking their personal financial situations with the current macro economic environment.

According to the survey, 33 percent of Americans expect mortgage rates to go up in the next 12 months, while anticipating a 1.1 percent drop in home prices over the next year. In terms of buying a home, 68 percent of respondents think it is a good time to purchase, while only 10 percent believe it is a good time to sell.

Doug Duncan, chief economist for Fannie Mae, told mortgage professionals at the annual Mortgage Bankers Association meeting that consumers have a right to be concerned about the housing market, and policymakers in Washington should acknowledge their worries.

Duncan predicts home prices of non-distressed properties will fall another 3 percent across the nation by mid 2012, and as much as 7 percent if foreclosures and short sales are factored into the equation, the news source reported.

In terms of home rental, the Fannie Mae survey found 43 percent of Americans expect rental prices to increase in the next 12 months, while only 7 percent believe rental prices will drop in the same time period. However, the poor economy has not discouraged consumers from taking advantage of low home prices. Thirty-two percent of Americans said they would rent their next home, but 63 percent said they would purchase a new home.  

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