Fifty-seven percent of Americans believe home prices will increase within the next year, an all-time high for Fannie Mae’s National Housing Survey, which was created in 2010. Meanwhile, 7 percent of those surveyed say they believe home prices will drop.
The majority of Americans — also 57 percent — believe that mortgage rates will increase as well, reaching the highest level since the survey was created.
"The spike in mortgage rate expectations this month seems to have had an impact on a number of the survey’s indicators and may increase housing activity in the near term by driving urgency to buy," says Doug Duncan, senior vice president and chief economist at Fannie Mae. "Consumers may recognize that today’s still favorable mortgage rates and home ownership affordability levels will recede over time. Given rising home and rental price expectations and improving personal financial attitudes, more prospective homebuyers may be deciding that now is the time to get off the fence."
Seventy-two percent of Americans say now is a good time to purchase a home, according to the survey. The survey also found that 37 percent of Americans say now is a good time to sell, a slight fall from 40 percent in May.
Source: “Majority of Americans expect housing fundamentals to rise,” HousingWire (July 8, 2013)