Americans are growing more and more cheery when it comes to the state of the economy, but their feelings regarding the housing sector remain tepid, according to survey results released Tuesday. Out of a group of one thousand Americans polled in Fannie Mae's December National Housing Survey, 41 percent said they now believe the economy is quote--on the right track, up from 36 percent in November.
In contrast, consumer sentiment toward the housing market remained subdued for another month, with the share of Americans saying now is a good time to purchase a home falling to 64 percent. By the same token, only 61 percent of consumers said they would buy a house if they were going to move anytime soon—a survey low.
The White House announced Wednesday that the Federal Housing Administration will reduce mortgage insurance premiums in an effort to boost U.S. homeownership. In a statement, the White House said that the FHA will cut premiums by 50 basis points annually, bringing them down to 0.85 percent. The statement added that the reduction is the first of several steps the president’s administration plans to take this year to quote--cut red tape and clarify lending standards.