Tag Archive for economy

What’s Ahead For Housing in 2014

December 2, 2013 Housing Market Comments Off on What’s Ahead For Housing in 2014

According to Freddie Mac’s chief economist, Frank Nothaft, 2014 should shape up to be better than 2013. Nothaft, in a recent article, said there’s reason to be optimistic about both the economy and the housing market. Economic growth, for example, is expect to be between 2.5 and 3.0 percent in the new year, more than 0.5 percent better than 2013. The accelerated growth will lead to continued improvement in the job market, which should push the unemployment rate below 7 percent by mid-year. Single-family home sales and housing starts will both rise to their highest level since 2007 and – despite rising mortgage rates – housing will remain generally affordable across the majority of the country. For-sale inventory, on the other hand, will be tight throughout the year due to the number of potential sellers constricted by negative equity. Home prices, however, will continue to rise, relieving underwater homeowners and helping to support higher home sales. According to Nothaft, both home prices and sales will come in around 5 percent higher than they were in 2013. More here.

Americans’ View Of Economy On The Mend

November 25, 2013 Housing Market Comments Off on Americans’ View Of Economy On The Mend

Gallup’s Economic Confidence Index is based on Americans’ current perception of economic conditions and whether they feel the economy is getting better or worse. Since tracking began in 2008, the index has reflected a generally negative view of the economy and where it was headed. Americans’ economic outlook hadn’t even entered positive territory until late May of this year. And, after that, public perception began to decline again, getting significantly worse during October’s government shutdown. But over the past five weeks, Americans’ confidence has been back on the rise. The index has improved by 15 points since mid-October. And, though it hasn’t returned to the peaks of early summer, it is on track to end 2013 better than it has been in, at least, six years. More here.

Gridlocked Government Grinds At Consumer Sentiment

November 15, 2013 Housing Market Comments Off on 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.

Americans’ Confidence Rebounds Following Fiscal Deal

October 25, 2013 Housing Market Comments Off on Americans’ Confidence Rebounds Following Fiscal Deal

Recently shaken by the government shutdown and debt ceiling negotiations, Americans’ confidence in the economy has already begun to rebound after lawmakers reached a deal to avoid defaulting on the nation’s debt. According to Gallup’s most recent Economic Confidence Index, Americans responded positively to news that the shutdown had ended, leading to the first improvement in economic confidence since September 15. But despite the gains, 69 percent of Americans still say the economy is getting worse while just 27 percent say it’s getting better. And the index, though improved, is still significantly lower than it was in May and early June when it peaked for the year. Overall, Americans’ perception of where the economy is headed was damaged by nearly a month’s worth of economic uncertainty but appears to have rebounded quickly. More here.

Housing Market Expected To Endure Economic Shock

October 22, 2013 Housing Market Comments Off on Housing Market Expected To Endure Economic Shock

Despite a recent wave of negative economic news, the housing market is expected to continue to improve next year, according to Freddie Mac’s October Economic and Housing Market Outlook. The government shutdown, debt ceiling debate, and slowing economy have affected the housing recovery as we head into the fourth quarter, but the market should endure the economic shock. Frank Nothaft, Freddie Mac’s vice president and chief economist, said the housing recovery keeps chugging along despite a constant barrage of disruptions to the broader economy. Nothaft believes, though housing may briefly slow down as the year comes to an end, the recovery should continue to absorb the economic shocks in stride and improve next year. More here.

Americans Cautious But Still Eager To Buy

October 8, 2013 Housing Market Comments Off on Americans Cautious But Still Eager To Buy

The number of Americans who say they’d buy, rather than rent, if they were going to move increased during the month of September, according to Fannie Mae’s September 2013 National Housing Survey. The survey, which polls 1,000 Americans every month via telephone to assess their attitudes toward owning, renting, prices, mortgage rates, the economy, household finances, and overall consumer confidence, found 69 percent of respondents say they’d prefer to buy a home over renting. The number who said they felt it was a good time to buy a house also rose, increasing to 72 percent. Still, the level of optimism about the overall economy has begun to plateau after recent improvements. According to Doug Duncan, senior vice president and chief economist at Fannie Mae, September’s results reflect Americans’ uncertainty about economic policy leading up to the government shutdown and debt ceiling debate. The survey shows that the improvements in consumer housing attitudes witnessed in recent months softened ahead of the government shutdown, Duncan said. How these fiscal policy issues are addressed could impact Americans’ attitudes and influence the economic and housing recovery in October and beyond. More here.

Economic Confidence Improves Despite Uncertainty

September 29, 2013 Uncategorized Comments Off on Economic Confidence Improves Despite Uncertainty

After nearly reaching positive territory in early June, Americans’ confidence in the economy has been on a downward trajectory, according to Gallup’s Economic Confidence Index. In recent weeks, economic confidence has been negatively impacted by the crisis in Syria, stagnant job growth, upcoming negotiations over the federal debt limit, and uncertainty over the Federal Reserve’s bond-purchasing program. Still, the most recent reading found a small improvement from previous weeks. According to the index, 40 percent of Americans now say the economy is getting better rather than worse, with 19 percent rating the economy as excellent or good and 36 percent saying it is poor. Gallup notes that Americans have generally been more confident in the economy this year, though they are still more negative than positive in their assessment of current conditions and the economic direction.

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