This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Fannie Mae: Despite It All, Americans Want to Buy, Not Rent

NEW YORK ( BankingMyWay) -- Despite barrels of ink spilled over the imminent tsunami in apartment rentals, Americans still want to own their own homes, and they have a lot to say about the new-look U.S. housing market.

According to the U.S. Census Bureau, 65.5% of adult Americans own their own home, a number that really hasn't wavered over the past year.

With housing prices historically soft and mortgage credit hard to get, the conventional wisdom has it that U.S. adults have had it with the housing market and are looking to rent rather than own their own abode.

As Census data show, that conventional wisdom is wrong. In fact, not only do U.S. consumers continue to pursue the American Dream, just over a quarter of them -- 28% to be exact -- prefer to rent versus own their own home, according to a separate survey of 1,000 U.S. adults from Fannie Mae.

In Fannie Mae's August National Housing Survey, U.S. adults are as optimistic, albeit cautiously so, over the housing market. Fannie Mae says lower household income and declining consumer sentiment could undermine further bullishness on the home ownership front.

"Consumer attitudes toward the housing market remain modestly positive, despite signs of increased concern over the direction of the economy," explains Doug Duncan, senior vice president and chief economist at Fannie Mae. "While the latest results showed a pickup in the share of consumers expecting mortgage rates to rise, reflecting the uptrend of long-term interest rates since mid-July, that may soon change. Friday's disappointing jobs report underpins the gradual nature of this year's housing recovery and supports our view that the muted economic recovery is still subject to downside risk and that additional Fed easing will soon be forthcoming."

How do Americans view the domestic housing market? Fannie Mae reveals five key takeaways in its survey:

  • U.S. adults expect home prices to rise in 2013, but only by 1.6%. Even so, a slightly bullish outlook on home prices is a big departure for homeowners, who have been decidedly downcast over housing prices over the past few years.
  • 18% of U.S. adults say it's a good time to sell their home, the highest level since Fannie Mae launched its annual housing survey in 2010.
  • 40% of housing consumers expect mortgage interest rates to rise nest year by an average of 4%. That does not jibe current economic policy from the Federal Reserve, which has said repeatedly it aims to keep interest rates near zero until 2105.
  • 73% of U.S. adults say it's a "good time" to buy a new home. Survey respondents in this category cite low home prices and low interest rates as primary drivers of new home purchases.
  • 60% of Americans remain skeptical on the U.S. economy, saying it's headed in the "wrong direction." That, Fannie Mae says, is the third consecutive rise in that sentiment from consumers, although only 13% of Americans expect their financial situation to "worsen."

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs