(http://www.fanniemae.com/about/housing-survey.html)

 Here’s a condensed version of the report’s results:

80% – consider homeownership important to the economy
31% – think the economy is on the right track, but,
44% – expect their financial situation to improve in the next year, and,
56% – of renters, are more optimistic about their personal finances than mortgage holders, and,
63% – of delinquent borrowers feel likewise

 64% – think it is a good time to buy a house . . .
      31% – of those, think it is a very good time to buy a house
      66% – number responding in 2003 that it was a good time to buy a house
73% – think housing prices will go up or stay the same over the next year . . .
      37% – of those, think prices will increase . . .
      36% – of those, think prices will stay the same

70% – say homeownership is one of the safest investment available.  In 2003, 83%
74% – think putting money into a savings, or money market account is safe.  In 2003, 79%
17% – believe buying stocks is a safe investment

65% – prefer owning to renting
     43% – for safety
     33% – for schools . . .both, ahead of economic considerations

 90% – satisfied with current mortgage
     93% – of those, with 30-year fixed rate mortgages
     76% – of those, with hybrid adjustable
     68% – of those, with adjustable mortgages    (and, the last two groups are more likely to be delinquent)

 Of renters . . .
79% – feel renting has been positive for them and their families
75% – believe that owning makes more sense than renting
54% – feel their credit history is not good enough to qualify for a loan
47% – feel they couldn’t afford purchase, or upkeep
67% – plan to buy a home at some point in the future
70% – think purchasing today is harder than it was for their parents generation
44% – would buy a house if they had to move
23% – would purchase a home later than they planned

 Of all respondents . . .
60% – think purchasing today is harder than it was for their parents generation.  In 2003, 49%
68% – think getting a mortgage will be harder for the next generation 

Top obstacles to obtaining a home loan:
22% – poor credit
19% – income
15% – job security
15% – lack of sufficient down payment

 76% – were confident they would receive good loan consultation for new loan, or refi
     47% – were very confident
51% – are making personal sacrifices to own a home
     24% – are sacrificing a great deal
76% – would pay mortgage before other bills 
42% – would give a higher priority to bills over their mortgage
48% – say banks should foreclose on owners who are unable to pay their mortgage
43% – feel otherwise
53% – feel homeowners are responsible for getting loans they can’t afford
88% – feel it is unacceptable to stop making payments on an underwater mortgage
     70% – of those who are delinquent, feel the same
        8% – believe it is acceptable

 “Does financial distress make stopping payments on an underwater loan acceptable?”
15% – answered yes
   8% – felt it was acceptable generally

 Most likely motivators for keeping mortgage payments current:
35% – impact on credit score
33% – moral qualms
2X – likeliness of over and under borrowers to consider defaulting because they knew someone who had

-Alan   http://www.alansmith-re.com    (208) 473-0343