Just 64 Percent of Americans Believe Buying a Home Is Safe Investment

February 28, 2011 No Comments »

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Less than two-thirds of Americans believe buying a home is a safe investment, according to the fourth quarter National Housing Survey released today by government mortgage financier Fannie Mae.

That’s down from 70 percent a year ago and not even close to the 83 percent share back in December 2003, before the housing boom materialized.

Still, nearly one in four Americans (23%) plan to buy a home in the next three years, with even higher shares for Hispanics (34%) and African Americans (35%).

And on a positive note, more Americans believe home prices won’t slip any lower, with 78 percent of respondents saying they’ll hold steady or increase over the next 12 months, up from 73 percent in January 2010.

But nearly two-thirds still think the economy is on the wrong track, which makes you wonder.

Meanwhile, 31 percent of delinquent borrowers says they’ve considered defaulting on their mortgage, though that’s down from 39 percent at the beginning of the year.

The number of delinquent borrowers who say they have seriously considered default also declined, from 25 percent in January 2010 to just 19 percent in the fourth quarter.

And most Americans (86%) continue to disapprove of strategic default, even if it is underwater.

Americans are also coming to terms with the fact that it’ll be more difficult to obtain a mortgage going forward, with 74% saying it’ll be tougher, up from just over two-thirds at the beginning of 2010.

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