Washington, U.S.A. — Housing market confidence among Americans continues to trend in a positive direction despite stalling optimism about the economy and personal finances, according to results from Fannie Mae’s June 2012 National Housing Survey. Results indicate flattening economic trends may be contributing to waning consumer expectations about their personal financial situation. Nevertheless, Americans’ continued positive sentiment about housing appears to remain buoyed by low house prices and interest rates at historically low levels.

“While consumers remain cautious about the general economy, their attitudes toward the housing market continue to improve,” said Doug Duncan, senior vice president and chief economist of Fannie Mae. “Although this positive trend may be short-lived if the general economy falters, one might ask whether consumers are increasingly seeing the current environment as a unique opportunity to buy a home while home prices remain depressed, rental costs are increasing, and interest rates are near historic lows.”

Respondents expect home prices to increase 2 percent in the next year, on average, and 35 percent of Americans say that home prices will go up in the next twelve months (also the highest level recorded since the survey began in June 2010). In turn, the share of consumers who say they would buy if they were going to move increased by 6 percentage points this month (the highest level seen in the survey’s two-year history).

At the same time, 36 percent of Americans think the economy is on the right track (down 2 percentage points since May) and 57 percent think the economy is on the wrong track (up 1 percentage point). The percentage of respondents who expect their financial situation to remain the same over the next year dropped by 4 percentage points from last month to 42 percent, while only 18 percent say their household income has improved (also down 4 percentage points).

Survey highlights

Homeownership and Renting:

• Average home price expectation hit 2.0 percent this month, a 0.6 percent increase from May and the highest value recorded since the survey began in June 2010.
• Thirty-five percent of respondents say that home prices will go up in the next 12 months, the highest level recorded since the survey’s inception.
• Thirty-seven percent of those surveyed think mortgage rates will go up in the next 12 months, a 4 percentage point decrease from last month.
• The percentage who say it is a good time to buy increased slightly to 73 percent, matching the highest level recorded since the survey began two years ago, while the percentage who think it is a good time to sell remained at 15 percent.
• On average, respondents expect home rental prices to increase by 4.0 percent over the next 12 months, generally steady since May.
• Forty-eight percent of respondents think that home rental prices will go up in the next 12 months, while 5 percent think they will go down.
• Sixty-nine percent of respondents said that they would buy if they were going to move, a 6 percentage point increase from last month and the highest level recorded since the survey’s inception.
• The percentage of respondents who would rent decreased from 32 percent to 27 percent, the lowest number to date.

The Economy and Household Finances:

• The upward trend of confidence that the economy is on the right track stalled this month, leveling at 36 percent.
• The percentage of respondents who expect their personal financial situation to stay the same over the next 12 months decreased by 4 percentage points to 42 percent, while those who expect their situation to get better steadied at 43 percent.
• Eighteen percent of respondents say their household income is significantly higher than it was 12 months ago, a 4 percentage point decrease and the lowest value seen since November 2011.
• Household expenses remained stable this month, with 55 percent reporting that their expenses stayed about the same as they were 12 months ago.

The most detailed consumer attitudinal survey of its kind, the Fannie Mae National Housing Survey polled 1,001 Americans via live telephone interview to assess their attitudes toward owning and renting a home, mortgage rates, homeownership distress, the economy, household finances, and overall consumer confidence.

Homeowners and renters are asked more than 100 questions used to track attitudinal shifts (findings are compared to the same survey conducted monthly beginning June 2010). Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to stabilize the housing market in the near-term, and provide support in the future.

The Fannie Mae Monthly National Housing Survey site has detailed findings from the June 2012 survey, as well as a podcast providing an audio synopsis of the survey results and technical notes on survey methodology and questions asked of respondents associated with each monthly indicator. Also available on the site are quarterly survey results, which provide a detailed assessment of combined data results from three monthly studies.

The June 2012 Fannie Mae National Housing Survey was conducted between June 4, 2012 and June 21, 2012. Interviews were conducted by Penn Schoen Berland, in coordination with Fannie Mae.

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Anthony Delmedico, founder and CEO of Del Visionaries, gave a speech titled E2 at the White House during the recent Future of Entrepreneurship Education (FEE) Summit.  E2 =  Entrepreneurship Education as core curriculum in our K-12 schools.  Anthony is demanding that Congress, state governor boards, President Barack Obama and Secretary of Education Arne Duncan mandate entrepreneurship education as part of core curriculum for all public schools.

Fueled by the speech he gave at the Future Entrepreneurship Education Summit, Delmedico says he is launching an online digital petition to create awareness to the plight of America’s future and garnish the support of millions to the importance of entrepreneurship to empower the next generation of America’s youth to become entrepreneurs that is job creators versus job seekers.

During Delmedico’s speech, he gave factual statistics to highlight on how the lack of an entrepreneurial education has a negative effect on America’s youth and the American economy. ”While the nation’s unemployment rate wavers close to 10%, for young adults 16 to 30, the unemployment is closer to 26 percent, and in some cities in our nation close to 40%,” said Delmedico.

“For those fortunate enough to earn a high school or college degree, very few are prepared for today’s new economy, and the job market of today.  Currently there are 2.4M college graduates whom cannot find jobs in their fields of study, that’s 80%.  They are in debt up to their eyeballs and they are disappointed,” says Delmedico.

“According to a recent report by the McKinsley Global Institute, America will need to create a net 21M new jobs by 2020 in order to return to full employment.  Currently we have a job deficit in this country.  75% of all new jobs come from entrepreneurs, not large corporations.  So if we are serious about creating 21M new jobs in the next 8 years, we need to create an army of entrepreneurs. This Army is sitting in our K-12 school system today.

We must launch E2 (entrepreneurship education) as required core curriculum in our schools, starting in the 4th grade and advancing to the 12th grade.  And we must do this by 2013.  This will create an army of job creators versus job seekers and change the face of the American economy within 8 years,” says Delmedico.

In 2009, Delmedico authored an interactive workbook, Kids in business around the World, that teaches kids (8 to 14) how to start their own business.  Knowing that kids would need more than just a book or academic experience he also invented a mobile business stand branded the Little Green Money Machine.

Kids pick a kid business template from the book, design their own advertising banners, and sell products/services in their neighborhoods and communities. This revolutionary interactive learning system is now helping kids, tweens, and teens learn how to set goals, set-up their first business, and lays the foundation of financial literacy and social entrepreneurship.

“If Entrepreneurship is the engine of the American economy, why isn’t the same emphasis placed on it in our K-12 schools as Math, English, and Science?  If we are serious about creating jobs, and putting the American economy back on track, this is a no brainer.  We need to create an army of entrepreneurs!  We need to teach it in our schools!” Delmedico demands passionately during his speech to his DC audience.

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Generation Opportunity President Paul T. Conway, former Chief of Staff of the U.S. Department of Labor under Secretary Elaine L. Chao, responds to the January 2012 jobs numbers report released by the Bureau of Labor Statistics:

“Young Americans, including young veterans who have honorably served their nation, are being told by President Obama and his administration to settle for a new economic status quo where the lack of jobs, high unemployment, a record high number of people dropping out of the labor force, and limited economic opportunity are considered normal.

Instead of being allowed to pursue their dreams and careers through meaningful work, regular paychecks, and new skills gained on the job, the ongoing poor economy is forcing young adults to delay their plans, delay their lives, and scramble to simply make ends meet.

“Despite thirty-six consecutive monthly jobs reports with unemployment over eight percent and a new CBO forecast of higher unemployment in the year to come, the message from the Obama administration to young Americans is to expect more of the same — higher taxes, more regulations, and more federal interference targeted at private sector job creators.

Young adults pay dearly for this administration’s disregard and diminishment of private employers. Their level of aloofness and lack of empathy for the daily concerns of young Americans is as astounding as it is unacceptable.”

January’s 8.3 percent overall jobless rate fails to reflect the significant and ongoing challenges faced by young Americans in the continually poor economy. Joblessness among Millennials ages 18-29 is already at historic levels since the end of World War II, and hidden behind January’s numbers is the fact that many Americans have either accepted short-term, seasonal work or simply given up looking for work and are, therefore, not factored into the unemployment rate.

Even worse, the long-term U.S. job growth picture remains grim based on an official report released this week by the Congressional Budget Office (CBO). CBO’s January 31, 2012 report concluded “a large portion of the economic and human costs of the recession and slow recovery remains ahead.”

CBO is also forecasting that the U.S. unemployment rate could reach 8.9 percent by the end of 2012, and could potentially increase to 9.2 percent in the year 2013. Finally, the report forecasts that the unemployment rate could remain as high as seven percent through the end of 2015, and that economic activity may remain “below the economy’s potential until 2018.”

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President Obama unveiled his eagerly awaited jobs plan recently, which might bring fresh hope and confidence to the economy and to the lives of people in America. The plan is mix of deliberate adjustment of expenditure and taxation, with a purpose to assist the ailing U.S. out of the recovery bed.

The President revealed what many have seen as a second stimulus package to lift the economy from recession. He proposed mild ramifications with fiscal tools, deductions in payroll taxes and extending the spendings on infrastructure and other alternatives to get the economy running again.

In order to increase activity, a mix of tax cuts and spendings on schools and roads, aid to teachers and assistance to the unemployed was announced. The total cost of the plan is $447 billion of which $253 billion will go to tax-cuts and $194 to new spendings. A select part of the bill could become law and provide a measure of support for the economy.

The best component to win the congress’ approval is the payroll tax cuts. Reduction in tax rates will give more purchasing power to the consumer, which eventually should push demands upwards. Currently employees normally pay 6 percent if their income in tax, but in the future, they may become liable to pay only 4.2 percent. A reduction of 2 percent.

Fundamentally, the Obama administration wants to put more people to work and increase spending so that a weakened demand may get strengthened and help bring back certainty in economic activity.

The $447 billion cost program is nearly half of the stimulus package announced by the President in 2009, and reflects the severity of the economic crisis. When the economy is weak, governments will often launch ambitious analysis to find out the root cause of the problem, and upon successfully finding it, they design policy to curb or mitigate its impact on the economy.

As in this case, Obama proposed a National Infrastructure bank which would cost $10 billion to establish, but which would pay for new public construction projects like local roads, bridges and mass transit systems.

Furthermore, the president outlined new spending program for school modernization (at least 35,000 public schools) with total spending of $25 billion. In an effort to provide benefits to jobless people, the plan sets aside $62 billion for unemployment insurance to continue supporting the jobless.

Many economists say that the American government must put billions of dollars into the economy to keep it from sinking into recession, but no proposal is ever be without criticism. Nigel Gault, Chief Economist with HIS Global Insight said “If you give somebody a tax cut and they just save it, then there no jobs created”.
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