More home buyers may jump off the
sidelines this spring as they get more urgent about purchasing a home,
fearing that home price and mortgage rate increases are on the horizon.
Housing surveys in recent weeks have shown that more Americans are
seeing now a great time to purchase a home. In the most recent survey,
73 percent of Americans say now is a good time to buy, according to the
latest Fannie Mae Housing Survey conducted in March. That’s up from 70
percent in February who said it was a great time to buy.
"Conditions are coming together to encourage people to want to buy
homes," says Doug Duncan, Fannie Mae’s chief economist. "With an
increasing share of consumers expecting higher mortgage rates and home
prices over the next 12 months, some may feel that renting is becoming
more costly and that home ownership is a more compelling housing
choice."
Indeed, more buyer urgency is evident in the market. Thirty-three
percent of those surveyed by Fannie say they expect home prices soon to
increase, which is the highest percentage in a year. What’s more, nearly
40 percent say they expect mortgage rates to rise in the next year too,
which is also up from previous surveys.
Coupled with that, 48 percent of Americans say they expect rents to
continue to climb, and 44 percent say they expect their financial
situation to improve in the next year.
Source: “More Americans Think It’s Time to Buy a Home,” MSN Real Estate (April 9, 2012)