Fannie Mae: Most Still See Home as Safe Investment

Fannie Mae CEO Mike WilliamsNearly two-thirds of respondents to a newly released survey said they thought it was a good time to buy a house, but 60 percent believe that buying a home today is harder than it was for their parents.
Mortgage financing giant Fannie Mae conducted the survey of 3,451 homeowners and renters, and compared some findings to a similar survey from 2003 – before home prices peaked and the worst economic downturn and foreclosure crisis in decades erupted.
Sixty-four percent said that it’s a good time to buy a house. That is nearly as many who said the same thing in 2003 (66 percent).
Seven out of ten respondents (70 percent) said buying a home is still one of the safest investments available. This compares to 74 percent who said putting money into a bank account – money market or savings account – is safe. In contrast, only 17 percent believe buying stocks is a safe investment.
Nearly three-quarters (73 percent) think housing prices will go up or stay the same in 2010 — 37 percent believe prices will increase and 36 percent feel prices will remain about the same.
“The survey shows that, despite the recent housing downturn, Americans continue to value homeownership and think about their homes in ways that go much deeper than the financial investment,” said Mike Williams, Fannie Mae president and CEO. “They are more cautious, however, about assuming a mortgage, recognize the requirements, and favor standard long-term fixed-rate loans with predictable payments.”
The survey respondents may think that home ownership is a valuable investment, but most also see increasing difficulties in obtaining or maintaining the financing.
Sixty percent believe that buying a home today is harder than it was for their parents, and nearly seven in ten (68 percent) say it will be even more difficult for their children.
Most – 88 percent – said that walking away from an “underwater” mortgage is not acceptable, but “those who know someone who has defaulted are more than twice as likely to have seriously considered stopping payments on their mortgage,” Fannie Mae said.
Here’s the link to the Fannie Mae National Housing Survey

Leave a Reply

Your email address will not be published. Required fields are marked *