Tag Archives: Consumer confidence

Fannie Mae Finds Consumer Confidence Low

12 Nov

Consumer confidence in the housing market plunged to an all-time low last month in the wake of the government shutdown, according to results from the Fannie Mae October 2013 National Housing Survey.

The share of people who believe it’s a good time to buy a house had the biggest ever one-month change, according to the survey, falling to a survey-low of 65%. However, the share of respondents who indicated they would buy a home in the event they moved actually increased slightly to 70%, a new survey high.

Less than half of respondents (46%) believe home prices will go up in the next 12 months, down six percentage points from September, while those saying home prices will fall increased by four percentage points to 10%.

“Housing market sentiment has clearly suffered in the wake of the recent government shutdown and debt ceiling debate,”  senior vice president and chief economist at Fannie Mae Doug Duncan said in a statement. “In October, we saw attitudes toward both the economy and the current buying environment experience their largest one-month drops in the survey’s three-year history.”

The decline in consumer optimism may foreshadow a slowing of the housing recovery, Duncan continued, but because of supply constraint, Fannie Mae predicts continued positive growth in home prices.

Only 27% of respondents believe the economy is on the right track, according to Fannie Mae, down 12 percentage points from the September survey—the biggest monthly record change in the survey’s history.

adapted from Reverse Mortgage Daily 11/11/13