Will Stronger Consumer Confidence Help Housing?

U.S. consumers are feeling more confident about the economy, and it appears the unemployment rate is on the way down, but will it be enough to kick start the moribund home buying market? Mortgage bankers – thanks to refis – are staffing up and anticipate at least two more strong quarters on the production front. Still, many lenders are fretting about what comes next. Of course, with the White House poised to release its blueprint on the future of Fannie Mae and Freddie Mac (and, really, the entire housing finance industry), it's safe to say the business of mortgage banking is up for grabs. I get the strong sense (with nothing empirical to back it up) that consumers believe home prices have not hit bottom yet, which means they are not going to buy a home (now) unless they think a bargain is at hand. Then again, rates are at historical lows. If a consumer waits until he/she thinks a bottom has been reached it may come at a time of rising rates, which means what was saved on price will be given back (because of steeper interest rates)…