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Seems not everyone is upset by the election of our new President. According to Fannie Mae’s January Home Purchase Sentiment Index, consumers have a more positive outlook for housing. That’s a good thing.
Patti LaBelle sang it like this…
I’m feeling good from my hat to my shoe
Know where I’m going and I know what to do
I’ve tidied up my point of view
I’ve got a new attitude.
Doug Duncan, Chief Economist at Fannie said, “Three months after the presidential election, measures of consumer optimism regarding personal financial prospects and the economy are at or near the highest levels we’ve seen in the nearly seven-year history of the National Housing Survey.”
However, he added that any real acceleration in housing activity will also depend on the consumers’ realization of their expectations for increased income to offset increased affordability.
According the survey results:
- 55% do not believe that mortgage rates will decline
- Those who believe now is a good time to buy decreased by 3%, to 29%
- 42% believe home prices will increase; a rise of 7% from December
- Consumers report that their household income is significantly higher than last year up 5%, to 15%
- Those thinking now is a good time to sell rose 2%, to 15%.
- Respondents who are not concerned about losing their job increased by 1%, to 69%\
Some good, some not so good, but overall consumers have a positive attitude on housing. Any rise in the cost of homeownership should be offset by an improving economy, resulting in stronger wage growth and more stability in employment. If so, housing should do just fine. If not, we have bigger fish to fry.
So let’s hope…
We’re in control,
Our worries are few;
Cause we got some lending to do
Ooh oh oh oh oh
We got a new attitude!
Editor’s Note: Our apologies, on every level, to Patti LaBelle.
