The Federal Reserve Bank of New York conducts an annual survey of Americans that asks for their opinion on everything from the housing market to inflation and household finances. According to the most recent results, Americans are feeling pessimistic about housing affordability but are optimistic about homeownership as an investment. Survey respondents say they believe mortgage rates will rise over the next year – though they also say there’s a 61 percent chance they fall over the next 12 months. Home prices, according to participants, should grow 5.1 percent over the next year. That’s up from last year when respondents said prices would rise 2.6 percent. But while respondents are clearly concerned about affordability conditions, they also believe strongly in the financial benefits of owning a home. In fact, 67.1 percent said buying a property in their zip code was a “very good” or “somewhat good” investment, which is well above the level commonly seen during the pre-pandemic period. (source)
