Housing market gaining back American optimism

As people are developing more positive attitudes about the economy and the housing market, they still continue to worry about an overall recovery, according to Fannie Mae's National Housing Survey. Growing concerns about household expenses have kept American optimism in check, but 57 percent believe purchasing a house is still a wise investment.

"Despite moderate signs of improvement in the housing market and the overall economy, consumer attitudes continue to be shaped by ongoing concerns about the recovery and their own financial situations," said Doug Duncan, vice president and chief economist of Fannie Mae.

The job market is continuing it's slow uptick, which could have people packing up moving boxes and relocating. As housing prices continue to slump, it is increasingly becoming a buyer's market, and people are aware of that. Single-family home prices dropped 4.1 percent in the fourth quarter of 2010 from the year before, according to the Federal Housing Finance Agency.

The number of mortgage borrowers who say they are underwater dropped 7 percent from last year, and 31 percent of those people feel they have sufficient savings, according to the survey.

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