Americans remain pessimistic on economy, home prices

Fannie Mae recently released the findings of the August National Housing Survey, which found Americans remain pessimistic about the economy, home prices and household finances. According to the data, 78 percent of respondents say the economy is on the wrong track, compared to just 16 percent who believe the economy is on the right track.

The survey also showed 27 percent of Americans believe home prices will continue to go down, and 22 percent expect their financial situation to worsen in the next 12 months. These results are the highest levels of pessimism for both home price and household finance since August 2010.

Doug Duncan, vice president and chief economist of Fannie Mae, said the poor outlook for the U.S. economy by respondents is a result of the current financial crisis occurring in Europe.

"I believe the public was looking at the U.S. debt, deficit, and the ensuing political struggle with one eye, and looking at Europe and their sovereign debt issues with the other eye, and saying: 'This is not what we want,'" Duncan said.

A recent poll from Reuters found the U.S. housing market is expected to struggle and fall a bit further before hitting bottom, but a slight increase in home prices are predicted for 2012. But the forecast for a modest improvement in existing home sales will not prevent the housing sector from remaining weak for many years to come, the poll suggested.
 

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