Consumer confidence in the housing market likely suffered in September due to anxiety over the fiscal policy debate leading up to the government shutdown, Fannie Mae said in its latest national housing survey.

The report also forecast that sentiment towards the market may deteriorate in October as Americans cope with the effects of the now-realized government shutdown and brewing debt-ceiling crisis.

But despite headwinds emanating from political conflict, the share of Americans who believed it was a good time to sell and the share of those who believed it was a good time to buy in September both edged up, according to the results of Fannie Mae’s September 2013 National Housing Survey.

“Americans’ awareness of policy uncertainty leading up to the Oct. 1 shutdown and the pending debt ceiling debate appears to have grown as indicated by an apparent cautionary holding pattern in overall consumer housing and personal finance sentiment,” said Doug Duncan, senior vice president and chief economist at Fannie Mae.

“How and when these fiscal policy issues are addressed could impact consumer attitudes in October and beyond, and influence the fragile economic and housing recovery,” he added.

In addition to other findings, the survey found that:

  • At 3.1 percent, the average 12-month home price change expectation continued to fall, decreasing 0.3 percent from last month.
  • The share of people who say home prices will go up in the next 12 months fell by 3 percentage points to 52 percent.
  • The share of people who say home prices will go down fell to match July’s survey low at 6 percent.
  • The share of respondents who say mortgage rates will go up in the next year increased 3 percentage points month over month to a survey high of 63 percent.
  • The share who say it is a good time to buy a house increased by 1 percentage point to 72 percent.
  • The share who say it is a good time to sell a house increased by 2 percentage points to 38 percent.
Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription