Consumers Expecting Higher Home Prices in Fannie Survey

The highest share of consumers in the two-and-a-half year history of Fannie Mae’s housing survey expects home prices to increase in the next 12 months, according to chief economist Doug Duncan.

In the survey, the average 12-month home price change expectation increased to 2.6%, and 43% of consumers said they believe prices will go up in the next 12 months. This was up 6% from November.

Also the percentage of consumers that think mortgage rates will go up continued to rise, increasing by 2% to 43%.

Stephen Calk, chairman, CEO, National Bancorp Holdings, The Federal Savings Bank, told this publication in an interview Monday afternoon that concern about rates possibly rising is spurring more borrower interest.