Wednesday, July 23, 2014 - Article by: Prospect Financial Group, Inc. -
Fannie Mae's June National Housing Survey has come out and shows a clear public opinion on the housing market. Each month Fannie Mae gathers data from a representative 1,000 households, asking questions about the state of the housing market. June's report showed that 87% of consumers believe home prices will rise by 2015.
The most telling data from the report was that 70% of consumers believe that now is a good time to buy a home. This opinion isn't hard to figure out. With rates so low and the overwhelming public opinion that home prices are on the rise, it's obvious that people feel now is a good time to run to the market.
Right now, U.S. home values are up 10% from a year earlier. Though the growth is slow, it's definitely happening. Taking into account that the cities in which the housing crash hit hardest are the cities that have seen this much progression; the housing market is currently showing a lot of promise.
Rates are the lowest they've been in four and a half months. This goes against what 96% of those surveyed believed. In the survey the question was asked "Do you believe that current rates will drop?" only 4% said that they believed rates would drop. With the trend rates are showing right now, dropping continuously from the beginning of the year, this small fraction of people may just be right.
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