Respondents from a Fannie Mae National Housing Survey for January 2012 expressed expectations for home prices to increase by 1 percent over the next 12 months, and most Americans continue to expect no change in mortgage rates.
This marks the fourth month in a row consumer expectation was positive.
â€œThe Federal Reserveâ€™s pledge to keep interest rates low beyond 2014, extending their prior time frame of mid-2013 announced in the summer, appears to have been reflected in the rising share of consumers expecting the rate to remain near record low levels for another year,â€ said Doug Duncan, VP and chief economist for Fannie Mae.
â€œAt the same time, consumers expect home prices to rise over the next year, extending the streak of rising home price expectations to four months. If the employment market continues to strengthen, it is unlikely that the Fed
will be able to keep its low interest pledge for long, and a more meaningful housing recovery may not be far behind if consumers are faced with the prospect of rising mortgage rates and home prices amid increased job security,â€ said Duncan.
The Fannie Mae survey polled 1,000 Americans through a telephone interview to assess attitudes towards different areas of the mortgage industry, including owning and renting, rates, homeownership distress, and the economy.
Homeowners and renters interviewed were asked more than 100 questions to track attitudinal shifts, and the survey was conducted between January 9 and January 27, 2012.
*The percentage of respondents who said the economy is on the right track was at 30 percent, an 8 percent increase since last November. The percentage who said the economy is on the wrong track was at 63 percent, a 6 point decrease since last November.
*While 51 percent of respondents expect home prices to stay the same, 28 percent said they expect prices to rise, which is a 2 point increase since last month. Sixteen percent said they expect prices to decline.
*Forty-four percent of respondents said their personal financial situation will get better over the next 12 months, as opposed to the 41 percent who said it will stay the same.
For more information on the survey, go to