Fannie Mae Survey Says Consumers See Home Prices Going Up

According to a Fannie Mae (FNMA) November survey, consumers predict home prices are on the rise.

For the first time in six months, the monthly Fannie Mae survey had respondents predicting that home prices will rise 0.2% in the coming year as compared to a 0.3% decline suggested in October.

The respondents still expressed concern about the U.S. economy with 75% thinking that the U.S. economy is “on the wrong track” versus the 16% of respondents believing it’s headed in the right direction.

The survey also touched on personal finances, with 18% saying during the next year, they see their financial situation worsening; this response is the same from October. But on a positive note, 66% of respondents said they had the same income, which is the highest number to respond this way.

In response to the survey’s findings, Doug Duncan, Fannie Mae’s chief economist said, “Most Americans expect no improvement in their personal financial situation in the next 12 months and will likely remain wary about undertaking the significant financial obligation associated with homeownership.”

The monthly telephone survey included approximately 1,000 adults interviewed during Nov. 1 to Nov. 25.

Stocks affected by the news included PulteGroup (NYSE:PHM), KB Home (NYSE:KBH), Toll Brothers (NYSE:TOL) and Standard Pacific (NYSE:SPF).