A New survey out by Fannie Mae, (The Federal National Mortgage Association – FNMA) a leading source for residential mortgages and a big player in the secondary market plus they are a government-sponsored enterprise (GSE), was released this month and has revealed several trends in consumer expectations that may affect individuals seeking a mortgage in Charleston SC. If you are seeking a mortgage broker Charleston SC, now is a great time to give us a call or click.
Several new trends emerged:
- Those who say it is a good time to buy a house fell three points to 65 percent.
- Survey respondents that felt it as a good time to sell a home increased to 44 percent. This is a new all-time survey high. This should help individuals on the fence about selling to get back to thinking now is the time and this will help increase inventory.
- Consumers who think home prices will go up in the next 12 months lessened one point to 44 percent Hovering near the where the range has been since June of this year.
- The segment expecting home prices will go down fell by only one point to 7 percent.
- Home price rising expectations over the 12 months was 2.8 percent compared to 2.2 percent just 2 month ago.
Expectations of higher mortgage rates had fallen back in September by five percentage points and consumers seem to feel that rate were to stabilize were also at 45 percent in September (rose by 5 percent) But this optimism was short lived because the new figures for October
In September the share of those expecting higher mortgages rates dropped by five percentage points while the share expecting rates to stabilize rose 5, the reaction representing 45 percent of respondents.
This optimism has been short lived and the October 2014 respondents have scaled back their expectation of stable rates and nearly half (48%) expect a rise in interest rates and only 38 percent felt they would stay flat (or lower). More skeptical indicators show that nearly half of the consumers polled felt it would be difficult for them to obtain financing today and that is a 2 point increase in in the last month.
What does all this mean for Mortgages in Charleston SC? National trends can affect expectation and housing sales in our local market, but interest rates should remain stable well into 2015 and consumer expectations have very little impact in the short-term. It’s still a great time to buy or refinance your home!
To read the full PDF report: http://www.fanniemae.com/resources/file/research/housingsurvey/pdf/nhs-monthly-data-110714.pdf