Buyers’ concerns about the economy may hold back housing

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Buyers’ concerns about the economy may hold back housing

Teke Wiggin Staff Writer Jun 9, 2014

fannie-mae6-10-14Consumers are increasingly upbeat about housing, but their concerns about the economy and stagnant income growth are keeping a lid on home sales, according to Fannie Mae’s May 2014 National Housing Survey.

The share of consumers who believe the economy is headed in the wrong direction stayed flat at 57 percent last month, while those who said their household income is significantly higher than it was last year fell 4 percentage points to 21 percent.

“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,” said Doug Duncan, senior vice president and chief economist at Fannie Mae, in a statement.

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