The majority of panelists (59 percent) indicated that a reasonable and appropriate timeframe for winding-down the GSEs is within the next five years. On the opposite ends of the spectrum, 13 percent suggested a timeframe within the next two years, and 10 percent said they believe a period of more than 10 years is sensible.
Existing proposals that would facilitate refinancing of certain underwater borrowers include the Responsible Homeowner Refinancing Act of 2012, sponsored by Sens. Barbara Boxer (D-Calif.) and Robert Menendez (D-N.J.), and the Rebuilding Equity Act sponsored by Sen. Jeff Merkley (D-Ore.). The majority of respondents said they supported these types of policy initiatives.
"More than four of every five supporters of these refinancing proposals said they believe that borrowers who have demonstrated an ability to make their payments in recent years would pose little or no incremental risk to taxpayers if they refinanced. Two-thirds of supporters said they believe that the lower monthly payments would create a significant stimulus for the economy," said Terry Loebs, founder of Pulsenomics LLC. "But the 41 percent of panel respondents who do not support these plans also hold strong views. More than two-thirds of them said they believe that rewriting loan contracts is bad policy in general, and that lowered monthly payments for borrowers ultimately translate into taxpayer and investor losses."
Additional details regarding this portion of the survey are available at www.pulsenomics.com.This is the 17th edition of the Home Price Expectations Survey. It was conducted from Feb. 22, 2013 through March 7, 2013 by Pulsenomics LLC on behalf of Zillow, Inc. For full survey results and graphics, please visit Zillow Real Estate Research or www.pulsenomics.com. About Zillow:Zillow, Inc. (NASDAQ: Z) operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 350 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgage Marketplace, Zillow Rentals, Zillow Digs™, Postlets®, Diverse Solutions®, Buyfolio™, Mortech™ and HotPads™. The company is headquartered in Seattle. Zillow.com, Zillow, Zestimate, Postlets and Diverse Solutions are registered trademarks of Zillow, Inc. Buyfolio, Mortech, HotPads and Digs are trademarks of Zillow, Inc.