Fannie Survey Respondents Call for Borrowers to Be Responsible

Nearly nine in 10 Americans, including seven in 10 who are delinquent on their own mortgages, do not believe it is acceptable for people to stop making payments on an underwater mortgage, according to the latest National Housing Survey by Fannie Mae. However, when asked if financial distress makes it okay to stop paying, 15% answered yes. Furthermore, the study found that not just delinquent borrowers but also those who are current on their payments are more than twice as likely to have seriously considered stopping their payments if they know someone who has already defaulted. The survey, which was conducted in December and January and polled some 3,000 owners and renters to assess, among other things, their confidence in home ownership, found that non-financial motivations have once again eclipsed investment factors as the primary reason for owning. But many people believe achieving and holding ownership status is more difficult for them than it was for their parents and will be even more so for their children. "Consumers are still committed to owning a home, but are showing increased cautiousness, regardless of whether they rent, own their homes outright or have a mortgage," said Fannie Mae's chief economist, Doug Duncan. "They are rebalancing their attitudes toward housing and home ownership by adopting a more realistic, long-term approach, and are less willing to take risks." Seven out of 10 respondents said they believe buying a home continues to be one of the safest investments available, and three-quarters think housing prices will go up or stay the same over the next year.