Americans are increasingly optimistic about the economy, their personal financial situation, and the housing market, according to the most recent results of Fannie Mae’s monthly National Housing Survey. The survey – which polls Americans to assess their views on household finances, buying and renting homes, home price changes, and more – found a record number of respondents who said the economy is headed in the right direction. And, according to Fannie Mae’s senior vice president and chief economist, Doug Duncan, growing economic confidence should help boost the housing market in the months ahead. “Continuing improvements in consumer attitudes in this month’s National Housing Survey lend support to our expectation that 2015 will be a year of the economy dragging housing upward,” Duncan said. In fact, optimism about the economy is likely the reason the number of participants who said they felt it would be easy for them to get a mortgage also hit a survey high. In addition, attitudes about the current home buying and selling environment are strong and the number of respondents who say they intend to buy a home the next time they move has been consistently high. Despite the encouraging results of this month’s survey, however, Duncan cautions that there needs to be more growth in consumer optimism toward personal finances and income before we see a more robust housing recovery take hold. More here.

Many experts and industry insiders expect this spring’s selling season to be an improvement over last year’s. Historically low mortgage rates and improvement in the job market are among the top reasons for the increased optimism. But, according to Freddie Mac’s Dave Lowman, executive vice president of single-family business, there is another reason to expect prospective home buyers to be more active this spring. Freddie Mac’s new Home Possible Advantage program begins on March 23 and provides creditworthy buyers with the opportunity to buy a home with as little as 3 percent down. The lower down payment requirement is one of a number of opportunities that allow first-time buyers and working families, who may have trouble coming up with the necessary savings, to be able to afford a down payment and become homeowners. Typically, saving for the down payment is the biggest obstacle for these buyers. Though they may be otherwise qualified, coming up with a sufficient down payment has kept some potential home buyers on the sidelines. This, and similar down payment assistance programs, are aimed at boosting the number of buyers active in the market, especially those that have been underrepresented in the housing recovery thus far. More here.

Each month, Fannie Mae’s Economic & Strategic Research Group releases an updated outlook on the housing market and economy. According to the most recent report, falling unemployment and rising incomes should help the pace of the housing recovery shift gears in the months ahead. Doug Duncan, Fannie Mae’s chief economist, said things should pick up this year after an uneven and disappointing 2014. “Our forecast calls for a number of factors, including strong hiring and income growth, stabilized housing affordability, and modestly easing lending standards, to translate into improving housing demand throughout the year,” Duncan said. “We continue to anticipate that the Fed will begin to hike short-term interest rates later this year, although weak global economic growth and geopolitical headwinds will likely limit the rise in long-term interest rates. We expect total home sales to increase by approximately 6 percent for 2015, with total single-family mortgage production climbing to approximately $1.2 trillion.” Fannie Mae also expects economic growth to improve from last year’s pace, in addition to boosted consumer confidence and increased personal spending. More here.

Typically, spring signals the housing market’s busiest season. But as potential home buyers ready themselves to hit the streets in search of their dream house, what type of house will they be looking for? According to the 2014 National Association of Realtors’ Home Buyer and Seller Generational Trends Report, it depends on their age group. For example, 80 percent of buyers under the age of 58 bought detached single-family homes, while those over 58 were more likely to buy townhouses or condos. Similarly, younger and older buyers differ on the age of the home they’ll buy. Baby boomers are most likely to buy a new home to avoid the renovations and upkeep associated with previously owned homes. On the other hand, younger buyers are more likely to buy an older home due to the fact that they are often lower priced and offer a better value. As we grow older the features and amenities we value change as well. For example, younger buyers are most concerned about their commute and how far from their job a house is. After having children, however, school district becomes a top priority. Older buyers, on the other hand, list distance from family and friends, shopping, and health facilities as most important. More here.

According to the Mortgage Bankers Association’s Weekly Applications Survey, mortgage rates fell last week, after rising slightly in previous weeks. The survey – which covers 75 percent of all retail residential mortgage applications – found that rates were down across all loan categories, including 30-year fixed-rate mortgages with both conforming and jumbo balances, as well as loans backed by the Federal Housing Administration and 15-year fixed-rate loans. The decline kept rates near historic lows and also put an end to slumping application demand, which has been falling in recent weeks. Last week, total mortgage activity, including both refinance and purchase demand, was essentially flat. The refinance index rose 1 percent from the week before, while the seasonally adjusted purchase index dropped 0.2 percent. The refinance share of total mortgage activity was also unchanged from one week earlier. The MBA’s survey has been conducted weekly since 1990. More here. 

Freddie Mac’s Multi-Indicator Market Index monitors the stability of the housing market by comparing current conditions to long-term normals in categories such as applications to buy homes, payment-to-income ratios, on-time mortgage payments, and the job market. According to its most recent release, nearly 80 percent of the nation’s housing markets are stabilizing. In fact, 38 of 50 states are now showing an improving three-month trend and 40 of 50 metropolitan areas are also showing gains. Len Kiefer, Freddie Mac’s deputy chief economist, said local housing markets are getting back on track. “The national MiMi improved for the fourth consecutive month,” Kiefer said. “We’ve even seen the purchase application indicator increase 0.07 percent on a year-over-year basis. Low mortgage rates and moderating house price growth are helping to keep payment-to-income ratios favorable for the typical family in most of the country. And, of course, labor markets are generally improving.” Still, despite recent improvements and an optimistic outlook for the housing market’s immediate future, Freddie Mac’s index has only registered a 31 percent rebound from its all-time low in October 2010. More here.

According to the results of a recently released survey, most Americans say they wish their home was a different size. The survey, conducted by Trulia, asked 2,000 Americans about the size of their current and ideal house and broke the results down by generation. Overall, 40 percent of respondents said their home was the right size, while 43 percent said they’d like a larger house and 16 percent said they’d prefer something smaller. Among baby boomers – a generation expected to be in the process of downsizing – just 21 percent said they’d prefer a smaller house. And though 26 percent said they’d like more space, a majority said they’re already living in their ideal sized house. Naturally, younger Americans were less likely to say their house is the right size. After all, the younger you are, the more likely you are to be living in a smaller space. The results clearly reflect this. In fact, among Millennials, 60 percent said their ideal home is bigger than their current house – just 13 percent said they’d like to downsize. Generation X is also a generation looking to move up. Because they are in their peak earning years, in addition to being most likely to have children, 48 percent of GenXers said they’d prefer a bigger house. More here.