Housing Market Rebound Expected to Be Gradual and Drawn Out

Fannie Mae’s August 2012 National Housing Survey reveals that respondents expect home prices to increase 1.6 percent in the next year, largely consistent with the previous month, and 40 percent of those surveyed expect mortgage rates to rise over the next 12 months, up 4 percentage points from July. Moreover, 18 percent say it is a good time to sell, the highest level since the inception of the survey, and the percentage of respondents who say it is a good time to buy held steady at 73 percent. “Consumer attitudes toward the housing market remain modestly positive, despite signs of increased concern over the direction of the economy,” said Doug Duncan, senior vice president and chief economist of Fannie Mae. | Read More