Home Prices Expected To Rise 2% This Year
According to Fannie Mae’s June 2012 National Housing Survey, Americans expect home prices to rise roughly 2% over the next 12 months. This is the loftiest expectation for the housing market since Fannie Mae began its monthly survey two years ago, and an measurable improvement over the results of May’s survey.
35% of those surveyed expect higher home prices in the months ahead. This, too, marks a record reading.
That confidence in housing is rising goes against broader confidence trends which show a deterioration. Just 36% of survey respondents feel the U.S. economy is on the right track, a reading mostly unchanged from February.
Weak confidence can inhibit home buying.
It can also lower mortgage rates, however, as mortgage bonds tend to improve when economic outlooks are weak.
Rental Cost and Mortgage Rates Encouraging Home Buyers
Confidence in housing is likely rising because today’s home buying condition are unparalleled in history. Record-low mortgage rates have increased home buyer purchasing power by 11 percent since last year. Buyer can buy more home than ever before.
Furthermore, the rapid rise of rents in many U.S. markets has given today’s renters incentive to join the ranks of homeownership. There is ample availability of low downpayment mortgage program such as the FHA’s 3.5% downpayment program and there are even zero-down program via the VA and USDA.
If you have a verifiable income plus a modest credit score, it’s likely there’s a mortgage program for which you’ll qualify. Start by talking with a lender. Get today’s rates and learn about your options.