The Federal Reserve Bank of New York just released their latest monthly Survey of Consumer Expectations and the results are encouraging for the housing market.
The survey showed that attitudes toward owning a home as a good financial investment remained strongly positive, with 65% of all respondents regarding the buying of property in their zip code as a “very good” or “somewhat good” investment. The survey showed that only 9% of respondents regard housing as a “bad” investment, which is down from 10.6% a year ago.
Another component of that same survey showed that expectations that their Household Finances would be better off one year from now was quite strong with 42.3% expecting to be better off and 45.95% saying they would be in About the Same financial position. So, that means that 88.25% expect to have the same or better household finances a year from now which bodes well for the housing market as potential home buyers are more likely to invest in real estate if they feel their situation is stable or will improve.
The survey also found that expectations of future mortgage rate increases rose about 50 basis points at both the one- and three-year horizons, with older respondents assigning a higher likelihood to a mortgage rate increase than younger respondents.