Gridlocked Government Grinds At Consumer Sentiment

Americans’ perception of the economy and housing market took a big blow during October’s government shutdown and debt ceiling debate. According to the results of Fannie Mae’s October 2013 National Housing Survey, sentiment suffered record losses from the previous month’s results. For example, the number of Americans who said it is a good time to buy a house experienced the largest one-month change in survey history, falling to 65 percent. The number of people who feel the economy is on the right track also set a survey record for monthly change as it dropped 12 percentage points from September. Doug Duncan, Fannie Mae’s senior vice president and chief economist, said the results suggest that consumer attitudes are highly responsive to ongoing debate and decision-making in Washington. Still, because the majority of respondents were polled during the shutdown, the data may reflect a temporary surge in economic pessimism. Over the long term, governmental gridlock is not expected to derail the housing market’s recovery. More here.

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