Fannie MaeAmericans' confidence in the economy, their personal finances and the housing market was already sliding ahead of the latest stock-market debacle, according to a Fannie Mae survey released Monday.

Some 70% of respondents say that the economy is moving in the wrong direction, while just 23% think it's headed the right way, according to the survey, conducted from July 5 to July 26. That's the highest level of pessimism since January of 2010.

"For this survey, that's the first time all of those indicators have moved strongly in the same direction," says Fannie Mae chief economist Douglas Duncan. "It's obviously reflecting the fact that economic forecasts have been downgraded in the last few months, and employment numbers and hiring have weakened as well. It's an advance indicator of what's going on in the market this week."

Not-So-Great Expectations

Among the survey's highlights:

  • Some 40% of respondents report a significant increase in their household expenses, up from 37% in June. Just 10% say expenses have significantly declined.
  • Optimism about personal finances declined for the third consecutive month: 35% of respondents expect their finances to improve over the next year, down from 40% in April.
  • About one-quarter of respondents expect home prices to decline, an increase of 5 percentage points since May. Half expect prices to stay the same.
  • Only 11% of respondents say it is a good time to sell a home, and fewer people plan to buy their next home – 61%, down from 66% in June. Meanwhile, more Americans think rental prices will go up than go down (46% vs. 43%).
  • One in five respondents report significantly higher household incomes over the past 12 months, but nearly an equal number -- 17 percent -- report significantly lower incomes.
  • On the plus side, respondents expect housing prices to decline 0.3% over the next 12 months, up from an expected decline of 0.5% in June.

"Up until the last couple of months, the prevailing view was that the driving economic issue was difficulty in housing," Duncan says. "People have seen what's happened with the decline in Europe and the debt ceiling, and that's moved ahead of housing for many folks."


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stockpixx

Fannie Mae a failed US Government drop hole is doing surveys! Pull the plug and move on Fannie you are a Failure! America doesn't need the Dem's in housing we can't afford the total cost!

August 24 2011 at 10:07 PM Report abuse rate up rate down Reply
theteleprompter

Go Back in time ......George Bush was elected , Bush had 52 unprecedented months of economic growth , That is a fact . The DOW was record high, unemployment was low , anyone who wante a job could have one , Flipping houses was on TV and inspired many , interest rates became lower than they ever had been before Bush , Those you could afford to buy or invest did so and did well . Where was Obama ? He was not there to sign PRESENT " . He was in a courtroom Fresh from Acorn along side his beloved urbin league laundering ...OOPs I meant Lawyering to strong arm lender Not to discriminate " and to give those High risk loans to low income , that never could afford that 400 grand home on a drive thru salary . Obama got those loans , in fact Obama himself applied for a loan that only low income people were suppose to apply for .Mccain saw this 2 yrs. before Fannie went Belly up , Mccain went to Bush 23 times " to warn the Dems controlled congress to look into Fannie , But the dems poo poo'ed Bush said Fannie was fine just ask Barney " Now ask the New Jr. Senator who arrived Barack Obama how he made more off Fannie than Any other senator besides his boss the chairman .

August 09 2011 at 9:18 PM Report abuse +1 rate up rate down Reply
COCONUT

1. Tea party has only been in Federal 9 months and they bring down our credit rating? Uh hu.! We have the same old leaders calling the shots. Same old politics! Sugar coated BS! Tea Party really wants not to raise taxes and have a balance budget! It really is: GOD BLESS AMERICA,; ONE NATION UNDER GOD FOR LIBERTY AND JUSTICE FOR ALL! I don't embrace the gay life style and I do feel those that do, have various reason for doing so, not all of which are hormonal. i do believe enviornmental and emotrions are the greatest influence. A need to be loved, respected, and treat like normal beings afre most important from the early beginings in a child's development. LOVE is quite a driving force! Not sexual love, but LOVE! Acceptance. Marriage between same sex people; yOU'VE GOT TO BE KIDDING! Why? That's not the way to acceptance. We all know that! Legal contract? Well, if you must! I understand the AIDS problems of no medical insurance and not being able to work, support yourself, and no medical insurance, while your single partner has medical insurance and other perks reserved for married people. Legal contract affords you most of the perks. Children? O come on! YOU ARE JUST FOOLING YOURSELF! Children are just another step up for your quest for acceptance! It is very difficult for one person with children. Frankly, I DON'T begin to know how a single mother can balance it all. Married women, who work, will tell you it is most demanding without outside help. Life is about choices! Abortion is not a choice; it is murder.
Tea Party did not and cannot be responsible for the drop in USA CREDIT RATING! Two costly wars were partially responsible for our debt. A change in our banking regulations and Investment companies are two bad choices. Allowing Big Companies to insure their employees, rather than contract with outside insurance firms. When I hired in, my health insurance was good until I terminator or died. Retirement -- company covered it all until 401K came along. Fantastic deal? NO!

August 09 2011 at 3:54 PM Report abuse -1 rate up rate down Reply
kernershort

Ben Bernanke, Chairman of the Federal Reserve Board is keeping interest rates at near ZERO PERCENT. Now, if you remember, the government was telling everybody to save for retirement in their IRA's or 401 (k) plans. Well, those frugal folks who did, are getting no return on their savings. And if that isn't bad enough, Uncle Ben is printing hundreds of billions of dollars to produce more inflation. Of course, he says, there is no inflation (despite the fact that everything is going up). So he is not only giving you nothing on your savings, but he is also destroying the value of any fixed income, such as Social Security. To add insult to injury, there has been no cost of living increase in Social Security benefits for two years. What is actually going on is that Uncle Ben has engineered a massive transfer of wealth from retired people (and savers) to the banks. The banks have plenty of money, but refuse to lend it, and retirees have no purchasing power to stimulate the economy. BRAVO, Mr. Bernanke!!!

August 09 2011 at 3:49 PM Report abuse +1 rate up rate down Reply
savemycountry911

They just want more bailout money and Obummer will probably give it to them.

August 09 2011 at 3:47 PM Report abuse +3 rate up rate down Reply
denjo4651

As long as gas prices remain high the economy will never recover.It is so unfair.

August 09 2011 at 3:02 PM Report abuse +3 rate up rate down Reply
gramps180

Ever notice how high gas still is even when the bottom fell out of oil prices.Guess that shows beyond a doubt we are being gouged big time

August 09 2011 at 2:37 PM Report abuse +3 rate up rate down Reply
1 reply to gramps180's comment
warrenbent

You should seriously get in the gas business. Competing with those "gougers" would be like taking candy from a baby.

August 09 2011 at 2:59 PM Report abuse rate up rate down Reply
1 reply to warrenbent's comment
gramps180

At my age I can hardly get into bed anymore lol

August 09 2011 at 3:07 PM Report abuse +2 rate up rate down
granaryst

Obama's thugs have ruined our country. The puppet master is buying back all of the gold he recently sold.

August 09 2011 at 2:35 PM Report abuse rate up rate down Reply
marine1942

FannieMae wants billons more in bailout money. My questions: who gives or rejects this request ?

August 09 2011 at 2:30 PM Report abuse +3 rate up rate down Reply
QUADZILLA AWAKEN

IT IS ONLY A MATTER OF TIME, YOU CANNOT KEEP COVERING UP WITH THE OLD BULLSHIT STORIES. CONGRESS SHOULD ALL MAN UP TELL THE TRUTH. AND YEA HOPE EVERYONE WILL REMEMBER THIS TIME WHEN IT COMES TO RE-ELECTION TIME. WE NEED NOT ONLY A CHANGE, BUT CONGRESS SHOULD BE THE 1ST TO TAKE A $50,000.00 A YEAR CUT. WHO VOTED THEM A $100,000.00 A YEAR RAISE FROM 100,000.00 TO 200,000.00? YES THEY SNUCKED THAT BUY, AND WHY ARE THE SO STEPPED UP HIGHER THAN US? WE PUT THOSE IDIOTS THERE. YES TIME TO GET THEM OUT ONE BY ONE. OH ONE MORE THING THAT I FOR THE LIFE OF LIVING, WHEN I BOUGHT MY HOUSE, I NEEDED MORE PROOF OF INCOME, FROM COPIES TO COPIES AND YES MORE COPIES. NOW THAT TOOK ABOUT 2 WEEKS SO THESE BANKS HAD TIME TO PLAY. THEN THERE WAS MORE BARIFICATIONS AND THEN YES HOUSE INSPECTIONS ECT. NOW JUST FOR THE RECORD IT TOOK ABOUT 4-6 WEEKS, MIND YOU ALL THE PAPER WORK WAS NEEDED TO SHOW PROOF I COULD AFFORD THIS HOUSE, AND YES THE LAST MINUTE CRAP THAT THEY ALL THROW AT YOU. SO WE WENT TO 8 WEEKS, MY POINT IS THE IDIOTS FROM CONGRESS AND THE PRESIDENT LET OUT 800 TRILLION DOLLARS, ALL IN 2 WEEKS, DID ANYBODY SEE ANY PAPER WORK ON PROOF OF WHAT WAS NEEDED AND FOR WHOM? NO THEY JUST GAVE IT AWAY, OH BY THE WAY MY LOAN WAS ONLY 250,000.00. I BET I DID MORE PAPERWORK THAN THEY DID FOR THE 800 TRILLION DOLLARS . WELL ON THAT NOTE HAVE A GOOD DAY.

August 09 2011 at 1:52 PM Report abuse +1 rate up rate down Reply
1 reply to QUADZILLA AWAKEN's comment
Richard

You're right. Why does Congress need a raise, anyway? Their salaries have to be a mere pittance compared to what they rake in from their campaign chests and the lobbyists.

August 09 2011 at 2:05 PM Report abuse +3 rate up rate down Reply