Consumer confidence in the economy is rising slightly and so are predictions about home prices. Mortgage company Fannie Mae reports that its January survey showed 30 percent of respondents believe the economy is on the right track, up from 22 percent in December. Respondents also predicted home prices will increase by 1 percent over the next year. In December, 0.8 percent believed that.
The numbers may be small, but at least they're headed in the right direction. Doug Duncan, chief economist at Fannie Mae, told The Wall Street Journal that the strengthening employment outlook is responsible for the uptick in consumer confidence, which will be reflected in increased spending.
But even if home prices have hit bottom, that's only part of the buying and selling equation. Last week, Bankrate reporter Polyana da Costa wrote that the improved employment picture will likely result in higher mortgage rates. And there are still a slew of distressed properties that have to come off the market before prices stabilize.
Nevertheless, any positive news is welcome in the current housing market.
Are you feeling slightly more optimistic about the employment outlook and how that translates into home prices?
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