Fannie Mae's recent national survey revealed consumer confidence continued to decline nationwide in August.
Of those responding to the August National Housing Survey, 78 percent believe the economy is currently on the wrong path to recovery, while 16 percent think it's heading in the right direction.
In addition, 27 percent of respondents believe home prices will decline during the next year, falling by an average 0.5 percent. In July, respondents predicted an average decline of 0.3 percent. August marks the third-straight month respondents forecast a drop in home values during the next 12 months.
In terms of personal finance, 22 percent of respondents believe their situation will become worse during the next year, up from 20 percent in July. The additional amount of respondents predicting home price declines as well as worse financial situations mark the highest levels of pessimism for both indicators since August 2010.
"The degree to which consumer attitudes appear to be sensitive to global events is interesting, and seems to be reflected in their view of the economy and their growing overall pessimism," said Doug Duncan, vice president and chief economist of Fannie Mae.
While pessimism may be high in most of the nation, cities in Texas have continued to flourish. Due to a healthy local job sector, the Houston real estate market has remained strong in past months.
Courtesy of 2M Realty News