Fannie Mae’s third quarter National Housing Survey shows that those who are exposed to default have similar attitudes about buying a home as those who do not know people who have defaulted. However, the survey also finds greater pessimism about the economy and personal finances among consumers who know defaulters.
“Knowing someone who has defaulted on their mortgage appears to be correlated with consumers being slightly more pessimistic about the direction of the economy, their finances, and their ability to obtain a mortgage, but does not materially correlate with their desire to own a home or their view of housing as a safe investment,” said Doug Duncan, vice president and chief economist of Fannie Mae.
Owners and renters who know defaulters are as likely to say owning makes more sense than renting, say buying a home is a safe investment and display roughly the same intention to buy a home as those who do not know a defaulter.
However, the survey also finds higher levels of pessimism on several measures related to the broader economy and personal financial prospects among consumers who know people that have defaulted: