Most Americans interviewed by Fannie Mae believe home prices will increase at least 1.4% over the next 12 months, the government-sponsored enterprise said.
Fannie Mae interviewed approximately 1,000 survey respondents for its May National Housing Survey.
34% of those who responded — the highest level since March 2011 — said home prices will rise over the course of the next 12 months. In addition, 41% of respondents believe home mortgage rates will likely go up over the course of the next year, an increase from the previous month.
The percentage of Americans who say it’s a good time to buy a home increased one-percentage point to 72% in May, while the percentage of respondents who believe it’s a good time to sell held at 15% of those surveyed.
Americans see home rental prices also going up over the next year, with the average respondent predicting a 4.1% rate increase. Forty-nine percent of those surveyed believe rental prices will in fact rise.
Approximately 38% of those surveyed believe the economy is on the right track.
46% of respondents expect their financial situations to stay consistent over the next year, an increase of 2-percentage points from the previous month.
15% of those interviewed say their household income is now lower than it was a year ago—a record low for this particular indicator. In addition, 32% of those interviewed see their expenses increasing significantly over the next 12 months, a four-percentage point decline from last month and the lowest level reached since the survey began.