By Pete Bakel
Consumer attitudes toward the housing market are increasingly positive despite the recent steep rise in mortgage interest rates, according to results from Fannie Mae’s July 2013 National Housing Survey.
The share of respondents who believe interest rates will go up over the next year increased another 5 percentage points to 62 percent, the highest level in the survey’s three-year history.
Consumers also expect home prices to climb 3.9 percent on average over the next 12 months, holding steady from the May and June survey results. At the same time, the share of respondents who say it is a good time to buy a house increased to 74 percent, while the share who say it’s a good time to sell a house increased to 40 percent, matching the survey high.
“Consumers have taken the interest rate rise in stride. Expectations for continued improvement in housing persist, and sentiment toward the current buying and selling environment is back on track from its dip last month,” says Doug Duncan, senior vice president and chief economist at Fannie Mae. “These results are consistent with our own analysis of previous housing cycles, which finds that interest rates and home prices are not strongly correlated.”