Dive Brief:
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The share of consumers who said they would buy a home if they were going to move dropped to an all-time low in December, according to Fannie Mae’s December 2014 National Housing Survey. At the same time, the share who said they would rent increased slightly between November and December.
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Consumer confidence in the American economy is strengthening, but attitudes toward housing have been “moving sideways,” noted Doug Duncan, Fannie Mae’s senior vice president and chief economist.
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That sentiment is tied to how consumers feel about their income. A quarter of survey participants deemed their financial situations have significantly increased over the past 12 months—about the same number as a year ago. And fewer said they expect their fortunes to improve in the next year.
Dive Insight:
Until potential homebuyers feel confident that they could financially survive another economic downturn, they’re unlikely to commit to 30-year mortgages. It will take “more meaningful and sustained gains in household income” to reverse their cautious attitude toward housing, Duncan noted.