Potential homebuyers increasingly avoid housing market in down economy: report

October 11, 2010 03:30PM

The financial landscape is taking a heavy toll on consumer confidence — particularly when it comes to buying a home, according to a report from research website FindLaw.com. Almost two-thirds of U.S. residents say they’re less likely to buy a home in the near future because of the economic climate, while only 8 percent of Americans say that they’re more likely to buy a home due to the current financial situation. Stephanie Rahifs, an editor with FindLaw.com, said that the low mortgage rates haven’t proven enough to move buyers into the market. “Stricter lending requirements are often making it more difficult for many people to obtain mortgages. High unemployment rates are raising concerns about housing appreciation, affordability and foreclosures,” Rahifs said. “These factors are causing many people to shy away from the idea of buying a house.” Lower-income families, in particular, are moving out of the housing market, the report shows, with those whose annual income is less than $50,000 much more likely to say they are less inclined to buy a home. TRD