Delinquent Mortgage Borrowers Grow More Favorable Toward Homeownership

In a recent study from Fannie Mae’s Economic & Strategic Research Group, data show that delinquent mortgage borrowers’ views toward the housing market and buying a home have become more favorable in 2013 compared to 2012, likely reflecting the broadening of the housing recovery and indicating the high value that delinquent borrowers place on homeownership. 

Findings from our National Housing Survey show that, in many cases, delinquent borrower attitudes moved closer to those of the survey’s general population. The more positive attitudes extend to a number of areas, including the expectation that home prices will go up, the belief that buying a home is a safe investment, and the likelihood of buying a home on their next move. 

• The share of delinquent borrowers who believe that buying a home is a safe investment climbed to 67 percent in the first quarter of 2013 – the same share as the general population – and 14 percentage points higher than at the same time last year. 

Their increased optimism also is helping to close the gap with the general population on attitudes about their personal financial situation, household income, debt stress, and job loss concerns. 

• Compared to 61 percent at the same time last year, the share of delinquent borrowers who say their personal financial situation has gotten worse during the past 12 months declined to 43 percent. 

Not surprisingly, delinquent borrowers are more likely to experience unsuccessful attempts to refinance than the general population of mortgage borrowers and are especially motivated by the desire to lower their mortgage payments. 

On this webpage you will find a link to an FM Commentary from Steve Deggendorf, Director of Economic & Strategic Research, that provides additional key insights from the study results, as well as a survey results deck, a data summary of responses to questions asked, technical notes providing in-depth information about the survey methodology, the questionnaire used for the survey, and a comparative assessment of the Fannie Mae National Housing Survey and other consumer surveys. 

Fannie Mae's Topic Analysis Reports provide deeper insights into one or more housing issues based on the compilation of three monthly National Housing Survey samples. The National Housing Survey polls more than 1,000 homeowners and renters each month to assess their attitudes toward owning and renting a home, the current state of their household finances, views on the U.S. housing finance system, and overall confidence in the economy. The three monthly survey studies that make up any given Topic Analysis Report are identical in wording and placement of questions. 

Downloads and Related Links
FM Commentary
Presentation About National Housing Survey Topic Analysis Focus (PDF)