The MReport Webcast: Friday 8/8/2014

Fannie Mae’s latest National Housing Survey found housing sentiment among U.S. consumers was down last month compared to other recent measures, with fewer respondents expecting continued growth. According to the findings, only 42 percent of Americans surveyed said they expect home prices to keep rising over the next year, continuing a downward trend that started in April. The average price change expectation was also down, falling for the second straight month to an anticipated 2.3 percent over the next year.

Despite those setbacks, Fannie Mae noted a few positive signs in its report, pointing to the closing gap between the number of those saying now is a good time to buy a home versus those saying it’s a good time to sell—a sign of an improving balance in supply and demand. The company also said the share of consumers whose homes have increased in value since purchase rose to an all-time high, suggesting a long-term positive trend for household balance sheets.

The U.S. government is set to see another 5-point-6 billion dollars from Fannie Mae and Freddie Mac as both GSEs continue to post solid earnings. Both companies released on Thursday their earnings reports for the second quarter, reporting subdued profits compared to recent quarters as settlement earnings and other previous one-time benefits subside. By September, the two mortgage giants will have paid a combined $218.7 billion back to the Treasury, tens of billions more than the amount they've drawn since their bailout. How long those payments will continue is still undecided as policymakers from Congress to the White House push to reform the secondary market and bring in more private capital.