What Do Americans Think About the Mortgage Industry?

What Do Americans Think About the Mortgage Industry? A new survey of public sentiment by the National Association of Realtors (NAR) marked some distinct changes in the way people feel about the mortgage industry – and a potential response by the government to problems engulfing the market.The 2007 National Housing Pulse Survey was conducted by the NAR, which polled 1,000 adults living in the United States in October.The survey found that only 5% of respondents are very or fairly worried about being able to make their mortgage payments over the next year.While 53% of those with fixed-rate mortgages feel little or no strain, more than half of those with variable-rate mortgages say they do feel a significant or slight strain.Almost nine out of 10 consumers still believe that buying a home is a good financial decision, and 59% of respondents also agree that now is a good time to buy a home.“Owning a home continues to be a good, long-term investment, and most consumers understand that,” said NAR President Pat V. Combs. “This new survey clearly shows that people believe in the value of homeownership and know that owning a home is one of the best ways for most families to build a nest egg.”While general sentiment about mortgages remains fairly upbeat, people have become increasingly critical of the mortgage process.Americans are more concerned about obtaining a mortgage and having enough money for down payment and closing costs than they have been in five years of polling. Almost six in 10 respondents say it’s hard for people in their area to obtain a fair and affordable mortgage. More than eight in 10 say having enough money for down payment and closing costs are obstacles for home buyers in their area, up 17% from a 2005 survey. Roughly 63% also think the mortgage approval process is an obstacle, up 13% since 2005. Meanwhile, 32% of those surveyed feel the rate of foreclosures in their area to have increased over the past year, 39% report the rate has remained about the same.About 6% believe the foreclosure rate has actually decreased in their area. About 38% of respondents said foreclosures were a very big or moderate problem, but 51% said foreclosures were only a slight problem or not one at all. In the wake of the rising foreclosures and problems with predatory lending, Americans are split on the need for more federal government oversight. Approximately 47% believe the federal government should take a more active role, while 45% believe oversight should be a matter for the private sector. Almost seven in 10 survey respondents are concerned about the cost of housing in their area. For Americans, the lack of affordable housing continues to be a greater concern than jobs, crime or terrorism.

Thank you,

Jeff Sargent

Jeff Sargent
President – Residential Mortgage Division
ONB Bank & Trust Co
8908 S Yale Ave, Suite 250
Tulsa, OK 74137
Office: 918.392.6572
Cell: 918.636.0630
Fax: 918.392.6550
jeff_sargent@onbbank.com