Tuesday, August 23, 2011
Tuesday, August 16, 2011
Homeownership: Still the American Dream
by THE KCM CREW on AUGUST 16, 2011
Yesterday, Fannie Mae released their National Housing Survey for the second quarter of 2011. They survey the American public on a multitude of questions concerning today’s housing market. Each quarter, we like to pull out some of the findings we deem most interesting. Here they are for the most recent report:
Most Important Reasons to Buy a Home
When we talk about homeownership today, it seems that the financial aspects always jump to the front of the discussion. However, the study shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, are:
It means having a good place to raise children and provide them with a good education
You have a physical structure where you and your family feel safe
It allows you to have more space for your family
It gives you control of what you do with your living space (renovations and updates)
The Home as an Investment
Though most people purchase a home for non-financial reasons, everyone realizes there is a money component to homeownership. Here is what they said on this issue:
65% of the general population (and 67% of homeowners) believe that homeownership is a ‘safe’ investment.
56% believe that homeownership has more potential as an investment than any other traditional asset class.
69% think that now is a good time to buy a home (this number has increased in each of the last two quarters)
Rent vs. Buy
We are always interested in the difference people see in renting vs. owning.
63% of renters have aspirations to someday own their own home
72% of renters think that owning is superior to renting
95% of homeowners see homeownership as a positive experience (4% see it as a negative experience) while 82% of renters see renting as a positive experience (17% see it as a negative experience)
96% of homeowners live in a single family residence while 46% of renters live in a multi-unit building
Bottom Line
Even in difficult times, Americans still realize the value of homeownership.
Yesterday, Fannie Mae released their National Housing Survey for the second quarter of 2011. They survey the American public on a multitude of questions concerning today’s housing market. Each quarter, we like to pull out some of the findings we deem most interesting. Here they are for the most recent report:
Most Important Reasons to Buy a Home
When we talk about homeownership today, it seems that the financial aspects always jump to the front of the discussion. However, the study shows that the four major reasons a person buys a home have nothing to do with money. The top four reasons, in order, are:
It means having a good place to raise children and provide them with a good education
You have a physical structure where you and your family feel safe
It allows you to have more space for your family
It gives you control of what you do with your living space (renovations and updates)
The Home as an Investment
Though most people purchase a home for non-financial reasons, everyone realizes there is a money component to homeownership. Here is what they said on this issue:
65% of the general population (and 67% of homeowners) believe that homeownership is a ‘safe’ investment.
56% believe that homeownership has more potential as an investment than any other traditional asset class.
69% think that now is a good time to buy a home (this number has increased in each of the last two quarters)
Rent vs. Buy
We are always interested in the difference people see in renting vs. owning.
63% of renters have aspirations to someday own their own home
72% of renters think that owning is superior to renting
95% of homeowners see homeownership as a positive experience (4% see it as a negative experience) while 82% of renters see renting as a positive experience (17% see it as a negative experience)
96% of homeowners live in a single family residence while 46% of renters live in a multi-unit building
Bottom Line
Even in difficult times, Americans still realize the value of homeownership.
Friday, August 12, 2011
Monday, August 8, 2011
S&P lowers ratings on Fannie, Freddie
Monday, August 8th, 2011, 10:03 am
Standard & Poor's lowered the ratings on Fannie Mae and Freddie Mac Monday after downgrading the U.S. government's sovereign debt rating to double-A-plus late last week.
Analysts also lowered the ratings on 10 of the 12 Federal Home Loan Banks and on senior debt held by FHLB banks as well. The outlook on all effected institutions is negative.
"The downgrades of Fannie Mae and Freddie Mac reflect their direct reliance on the U.S. government," S&P said in a statement. "Fannie Mae and Freddie Mac were placed into conservatorship in September 2008 and their ability to fund operations relies heavily on the U.S. government. In addition to the implicit support we factor into our ratings, the U.S. Treasury has demonstrated explicit support by providing these entities with capital quarterly, as necessary."
S&P also lowered ratings on the senior debt issued by the Federal Farm Credit Banks to double-A-plus, although ratings on the individual farm member banks are not affected.
The Chicago and Seattle Federal Home Loan Banks weren't downgraded because S&P already rated them at double-A due to lower stand-alone credit profiles.
Write to: Kerri Panchuk.
Standard & Poor's lowered the ratings on Fannie Mae and Freddie Mac Monday after downgrading the U.S. government's sovereign debt rating to double-A-plus late last week.
Analysts also lowered the ratings on 10 of the 12 Federal Home Loan Banks and on senior debt held by FHLB banks as well. The outlook on all effected institutions is negative.
"The downgrades of Fannie Mae and Freddie Mac reflect their direct reliance on the U.S. government," S&P said in a statement. "Fannie Mae and Freddie Mac were placed into conservatorship in September 2008 and their ability to fund operations relies heavily on the U.S. government. In addition to the implicit support we factor into our ratings, the U.S. Treasury has demonstrated explicit support by providing these entities with capital quarterly, as necessary."
S&P also lowered ratings on the senior debt issued by the Federal Farm Credit Banks to double-A-plus, although ratings on the individual farm member banks are not affected.
The Chicago and Seattle Federal Home Loan Banks weren't downgraded because S&P already rated them at double-A due to lower stand-alone credit profiles.
Write to: Kerri Panchuk.
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