Rebound in housing market stalling, says Fannie Mae


The recovery in housing sales is stalling due to continued uncertainty about the economy, the mortgage giant Fannie Mae said Monday.

Fifty-seven percent of Americans think the economy is headed in the wrong direction, which is unchanged from April, according to Fannie Mae’s May 2014 National Housing Survey.

“Consumers’ lukewarm income expectations and reticence about the economy seem to be holding back housing demand,” said Doug Duncan, senior vice president and chief economist at Fannie Mae, in a statement.

Duncan added: “This year’s spring and summer home buying season has gotten off to a slow start, even as mortgage rates have trended lower over the past two months.”

“While recent housing activity suggests that the worst of the housing slump may be behind us, this caution among consumers supports our expectation that the rebound in home sales will likely be too modest to pull sales for all of 2014 ahead of last year.”

Officials polled 1,000 Americans for the survey, which has a margin of error of plus or minus 3.1 percentage points.