August 08, 2011Fannie Mae Releases July Consumer Indicators
WASHINGTON, DC — Fannie Mae's July national consumer attitudinal survey finds that Americans' attitudes about the economy, household finances, and homeownership are growing more pessimistic – with 70 percent of Americans believing that the economy is moving in the wrong direction, while only 23 percent think the economy is moving in the right direction. Key indicators show that more consumers across the country have diminished expectations for home prices and their personal finances, more are thinking about renting as a next step, and twice as many are reporting significantly higher expenses than incomes.
"The impact of recent financial market volatility on household wealth has been a setback to consumer confidence, which we’re seeing in our survey results and in Americans’ continued restraint in their willingness to take on additional financial commitments," said Doug Duncan, vice president and chief economist of Fannie Mae. "Our overall July survey data, beyond the eleven indicators we present this month, show that most Americans think the economy is on the wrong track – the highest level of pessimism to date for this topic. The sluggish pace of job growth, coupled with this economic uncertainty, is clearly having an impact on consumers’ attitudes toward the housing market and their own personal financial situations."
Homeownership and Renting
The most detailed attitudinal survey of its kind, the Fannie Mae National Housing Survey polls 1,000 Americans each month via live telephone interview to assess their attitudes toward owning and renting a home, mortgage rates, homeownership distress, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts (findings are compared to the same survey conducted monthly beginning June 2010). Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to stabilize the housing market in the near-term, and provide support in the future.
For detailed findings from the July 2011 survey, as well as technical notes on survey methodology and the questions asked of respondents associated with each monthly indicator, please visit the Fannie Mae Monthly National Housing Survey site at http://www.fanniemae.com/media/survey/monthly.jhtml. Also available on the site are quarterly survey results, which provide a detailed assessment of combined data results from three monthly studies. The July 2011 Fannie Mae National Housing Survey was conducted between July 5, 2011 and July 26, 2011. Interviews were conducted by Penn Schoen Berland, in coordination with Fannie Mae.