WASHINGTON (MNI) – According to results from Fannie Mae’s November
National Housing Survey publised Wednesday, home price expectations
moved from negative to positive territory for the first time in six
months, with respondents expecting home prices to increase by 0.2% over
the next year. Fannie Mae said overall, trends demonstrate that
consumers are in a “wait and see” pattern heading into 2012. The
following are highlights from the survey:

Homeownership and Renting

* Twenty-two percent of respondents expect home prices to increase
over the next year (up 3 percentage points since last month), while 22
percent say they expect home prices to decline, down 1 percentage point
since last month. 53 percent say prices will stay the same, a 2
percentage point drop from October.

* Thirty-three percent of Americans say that mortgage rates will go
up over the next 12 months, down 3 percentage points from October and a
return to the level seen in September.

* Sixty-eight percent of respondents say it is a good time to buy a
home (down by 1 percentage point since last month), and just 10 percent
say it is a good time to sell, which is unchanged from the previous two
months.

* On average, Americans expect home rental prices to increase by
3.2 percent over the next year, a 0.1 percent decrease from October.

* Just 6 percent expect a decline in home rental prices (unchanged
since last month), while 41 percent of respondents believe that home
rental prices will increase in the next 12 months.

* Thirty-two percent of Americans say they would rent their next
home, while 63 percent say they would buy, down 3 percentage points
since last month and a return to the level seen in September.

The Economy and Household Finances

* Seventy-five percent of Americans say the economy is off on the
wrong track (down 2 percentage points since October), while just 16
percent think the economy is on the right track, unchanged since
September and tying the all-time low number.

* The number of respondents expecting their personal financial
situation to worsen over the next 12 months has stayed at 18 percent
since October.

* Sixty-six percent say their income is about the same, the highest
number ever to report this. Sixteen percent of those surveyed say their
household income has increased over the past 12 months (down 2
percentage points since October) while 18 percent say that their income
has declined significantly.

* Fifty-four percent report that their expenses are about the same
compared to 12 months ago (up 3 percentage points versus October). Eight
percent say their household expenses have decreased over the past 12
months (down 3 percentage points since October), while 37 percent say
their expenses have increased significantly.

** Market News International Washington Bureau: 202-371-2121 **

[TOPICS: M$U$$$,MAUDS$,M$$AG$]