With the housing market struggling, 56 percent of consumers are open to the federal government taking a more active role in overseeing mortgage and lending practices, according to a recent survey. Thirty-eight percent prefer that private companies oversee their businesses.
This is a marked shift from the previous year's survey, which showed respondents were evenly split on the issue of government involvement.
Despite difficult housing news, Americans remain confident about the housing market. Eighty-five percent of respondents believe buying a home is a good financial decision, down just 2 percent from the previous year. Two-thirds of Americans believe now is a good time to buy a home, up 12 percent from the previous year.
"Homeownership offers immediate benefits and long-term value despite recent slowdowns in some markets," said Dick Gaylord, president of the National Association of Realtors, the sponsor of the survey.
More than one-quarter of respondents expressed concern that their home, or the home of a family member, may be foreclosed upon because of their inability to make mortgage payments. Nearly half of respondents report that foreclosures are a problem in their area, up from 38 percent.
"Realtors care as much about keeping families in their homes as they do about helping them find a place to call home," said Gaylord. "NAR is aggressively working with government agencies, lenders and consumer groups on behalf of America's homeowners to help more families keep their homes."
Despite all the bleak news, people remain optimistic that they could secure the credit they need to buy a home. Eight out of 10 are confident in their ability to refinance should they have the need.
Eight percent of respondents say they are worried about being able to make their mortgage payments over the next year, the survey said.
Of those with a mortgage, one-quarter of the respondents have some type of variable-rate mortgage, including interest-only (19 percent) or adjustable rate (7 percent). Two years ago, the percentage of respondents holding a variable-rate mortgage was twice as high (56 percent) in the NAR survey.
"As the leading advocate for homeownership and housing issues, NAR has supported more government oversight in lending as a result of abusive and predatory lending practices that have caused families to lose their homes and savings and led to increased foreclosure and vacancy rates," said Gaylord.
"The survey also clearly shows that falling home prices have improved housing affordability, allowing many Americans -- some of whom may have been priced out of the market a few years ago -- to achieve the dream of homeownership," he said.
The telephone survey consisted of 1,000 adults living in the 25 most populous metropolitan statistical areas, including Chicago. The study has a margin of error of plus or minus 3 percent.
A new Web site, Fix Housing First , is a collection of housing and housing-related interests that believe falling home values are at the core of the economic crisis. The group says that a revival in the housing market will boost the economy.
The organization, in discussions with members of Congress about another stimulus package,has come to the table with a proposed solution to tackle the crisis: a tax credit for homebuyers coupled with below-market mortgage rates.
