Over the past few months we have seen the housing market slow as a result of increasing interest rates and fewer properties on the market.
It is now becoming clear; more of us are delaying buying or selling because we are feeling more cautious about the economy and our personal finances. This is the findings of Fannie Mae as published in their November National Housing Survey.
According to the survey, more than two-thirds of Americans say they believe the economy in on the wrong track and 22 percent of respondents indicated they expect their personal finances will get worse in 2014.
In addition 55 percent of people who responded to the survey believe housing prices will decline or stay the same in the coming year and most believe mortgage interest rates to increase.
A spokesperson for Fannie Mae, talking about the November survey said, “Our November National Housing Survey results show a loss of momentum in expectations for home prices and personal finances. Also, the majority of consumers expecting higher mortgage rates implies a slowing of housing market momentum.
“As the economy continues to improve and household balance sheets for most Americans are slow to repair, we continue to see the transition to a full housing recovery as a slow process.”
Upcoming fiscal policy discussions and labor market developments may also lead to some bumps along the way.” I would be surprised if mortgage interest rates don’t increase in 2014 but I am predicating they will remain below 6 percent and I believe, here in the Sacramento area, we will see modest increases in home prices. We still have a pent-up demand for housing and as prices continue to inch up, a good number of homeowners who are recovering from being underwater for the past few years will want to sell.
