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by Jann Swanson
Confidence in Housing Market Grows, Despite Fiscal Cliff Turmoil
Fannie Mae's Chief Economist pointed to the turmoil over the fiscal cliff and debt ceiling for a sharp drop in consumer confidence in December. Fannie Mae's National Housing Survey recorded a 5 point month-over-month decline in the percentage of respondents who think the nation's economy is "on the right track" to 44 percent while "wrong track" responses rose from 50 to 53 percent.

At the same time confidence in the housing sector grew with consumers showing continued positive attitudes toward home prices, rents, and mortgage rates. The percentage of respondents who expect home prices to increase over the next 12 months rose from 37 to 43 percent, the highest share in the survey's 2.5 year history. The percentage expecting price decreases fell from 44 percent in November to 40 percent in December. Expectations for price increases averaged 2.6 percent compared to 1.7 percent in November, another historic high for the survey. more at Mortgage News Daily

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