With the housing industry struggling to recover, many people don't have confidence about the real estate market. But a new study indicates that even if Americans know someone who has defaulted on their home loans, they're still motivated to own a home of their own.
According to Fannie Mae's third quarter National Housing Survey, whether people know someone who has defaulted on their mortgage has little impact on how they feel about homeownership, but does influence their economic sentiment.
For instance, 92 percent of those who know defaulters say owning still makes more sense than renting. When these same people were asked about the state of the economy, 80 percent said it was on the wrong track. For those who didn't know people who have defaulted, 75 percent had a negative view about the economy's future.
Doug Duncan, vice president and chief economist of Fannie Mae, said economic activity has increased in the third quarter but the activity was more about consumers saving and less about purchasing big-ticket items such as buying a new car of financing a home loan.
For individuals who are interested in making a significant purchase, having a clean credit history can increase the chances of being approved for a prime interest rate.