Fannie Mae: Consumer optimism up quarter-over-quarter

Consumer confidence was up recently.According to the most recent national housing survey conducted by Fannie Mae, optimism from consumers was up quarter-over-quarter, increasing during the first quarter of 2011.Fannie Mae's survey was taken between January and March 2011. While optimism was growing, many consumers are still lacking confidence in the housing market's ability to fully recover.Overall, 57 percent of respondents felt that purchasing a home was good potential investment, ranked above other options, such as 401(k) plans and IRAs. However, only 33 percent felt that the economy is back on track, a 4 percent rise quarter-over-quarter. Yet, 42 percent feel that their personal finances will improve during the next year, which is a 2 percent jump year-over-year.”Despite moderate signs of improvement in the housing market and the overall economy, consumer attitudes continue to be shaped by ongoing concerns about the recovery and their own financial situations,” said Doug Duncan, vice president and chief economist of Fannie Mae.”Uncertainty regarding the improving labor market, expectations of little home price and interest rate movement, and rising household expenses has left consumers feeling less financially secure and translates into weak mortgage demand,” Duncan continued.In Houston, the labor market has seen recent increases, with 50,700 more jobs available in February 2011, representing a 48 percent jump year-over-year. As a result of these jobs and the increased confidence among consumers, Houston's real estate market could benefit greatly.?Courtesy of 2M Realty News

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