CBS News/New York Times Poll For release: Wednesday, June 29, 2011 6:30pm (EDT)

The Housing Market and Impact of the Mortgage Crisis June 24-28, 2011 Americans have been affected by the housing downturn almost half say they have felt its impact, and four in ten have found it harder to make mortgage payments. Those who bought during the boom now report being hardest hit. The housing downturn is constraining Americans life choices half say it has affected their future plans, and one in five say it has prevented them from moving or taking a job they wanted. Uncertainty pervades Americans outlook on the housing market: people are mixed on whether buying a home now is risky or safe as an investment. Still, most say home ownership is an important part of the American Dream. On policy matters, four in 10 Americans would like to see the federal government do more to help the housing market. Just over half say the government should specifically help homeowners in trouble with payments to try to improve the market.

48% of Americans overall, and 45% of homeowners, say they have been affected by the housing markets downturn, including one in ten homeowners who say it has caused them a hardship and major life changes. Impact of Housing Downturn on your Family All Homeowners Hardship, major life changes 15% 10% Difficult 33 35 No effect 52 55 And many homeowners with mortgages say meeting that monthly financial obligation has become more burdensome; 40% of homeowners say that it has been more difficult to afford their mortgage payment in the last three years. In Last 3 Years, Making Mortgage Payment has been: (among homeowners with a mortgage) Easier 14% More difficult 40 No different 46 15% say they have missed making a mortgage payment in the last three years. Among Americans overall, 12% say they are paying more than they can afford for housing, including 8% of homeowners who say the same. Most are paying as much as they can afford.

Impact on Their Lives and Choices For some, the housing markets woes have directly affected their life choices. Half of Americans and 44% of homeowners say the downturn in the housing market has affected their plans for the future a lot or some, including 23% who say it has affected their plans a lot. Housing Market Affected Future Plans All Homeowners A lot 23% 18% Some 26 26 Not much 22 23 Not at all 28 33 18% of Americans, and 13% of homeowners, say the weak market has prevented them from moving to another city or taking another job. Housing Market Prevented Job Change or Move All Homeowners Yes 18% 13% No 80 86 And one in 10 homeowners says they have postponed selling their home over the past three years because they are waiting for the housing market to improve. Postponed Selling Home Until Market Improves? (among homeowners) Yes 10% No 88 29% are relying on their homes value to provide at least some of their retirement funds. However bad things may be now, Americans are optimistic about the future value of their home. 60% expect the value of their home to increase over the next ten years, although perhaps not by a lot. 6% expect their home to decrease in value, and 30% expect no change. Expectations for Their Home Value in next 10 Years: (among homeowners) Increase 60% A lot 8% Some 46 Not much 6 Decrease 6 Stay the same 30

Hit the Hardest Homeowners who bought their homes 4 to 10 years ago, during the housing boom when prices were rising rapidly, have been hardest hit: 44% of these homeowners say their home is now worth less than what they paid for it, and a third says it is worth less than the amount of their mortgage. 22% say the markets downturn has influenced their future plans a lot; 19% say they have been unable to make a job change or move because of it, and 15% have delayed selling their home until the market improves. These homeowners are more financially strapped as well; 50% say paying their mortgage has become more difficult in the last three years, and 19% have missed a mortgage payment. Impact of Housing Downturn by When You Bought Your Home Bought home: During boom Before/after boom (2001-2007) (Before 2001, 2008-now) Home worth less than paid for it Housing decline influenced plans a lot Unable to change job, move Delayed selling home Paying mortgage more difficult Missed mortgage payment What Its Worth The desire to own a home flies in the face of some homeowners recent experiences in the real estate market. For about one in four homeowners, their house has been an investment that declined in value and nearly as many now owe more than their home is worth. 25% say their home is worth less now than what they paid for it. While half says their home is worth more than they paid for it, 60% of those homeowners bought their home at least 10 years ago. 24% say their homes value has not changed. Homes Worth Compared to Amount Paid (among homeowners) Worth less than paid 25% Worth more than paid 50 Worth the same as paid 24 And in addition, nearly a quarter of homeowners who have a mortgage say they are now underwater: 22% say their home is worth less than what they owe on their mortgage. Homes Worth Compared to Outstanding Mortgage (among homeowners with mortgage) Worth less than mortgage 22% Worth more than mortgage 58 Worth the same as mortgage 19 44% 22% 19% 15% 50% 19% 13% 16% 10% 8% 32% 11%

5% of homeowners say that in the past three years they have been threatened with foreclosure, and nearly half say they or someone they know was threatened with foreclosure or eviction. 29% say the person they know lost their home as a result. But very few homeowners with mortgages would just walk away from that debt themselves. Only 8% said that if their home were to lose much of its value they would consider stopping their mortgage payments and allowing foreclosure. 88% said they would not seriously consider doing that. And a majority of Americans 66% - do not believe it is ever justified to walk away from a mortgage because a home has lost value. Housing and Americans Financial Plans Almost nine in ten Americans think owning a home is an important part of the American dream, including more than half who say it is a very important part. How Important is Home Ownership to American Dream? Very 55% Somewhat 34 Not very/not at all 10 And despite the recent problems in the housing market, owning a home remains a desirable goal. By about three to one, Americans say that if they could afford either they would prefer to buy rather than rent a home. And among renters, 85% say they would like to own their own home one day. Still, uncertainty looms over Americans views on housing. Americans today are mixed on whether buying a home now is a risky or safe investment. Homeowners feel a little safer. Buying a Home: Risky or Safe Investment? All Current Homeowners Safe 49% 57% Risky 45 37 Still, compared directly to renting, most Americans and most homeowners think it is better financially to own than rent. Better Financially to Own or Rent? All Current Homeowners 62% 68% 29 22

Own Rent

401ks and IRAs are more often viewed as safer long-term investments than buying a home. Rating the Housing Market Its a buyers market: 63% of Americans say the housing market for buying a home in their community is good, while most (65%) say the market for selling one is bad.

Very good Fairly good Fairly bad Very bad

Market in Your Community for. Buying a Home Selling a Home 18% 4% 45 28 22 40 12 25

A majority says foreclosures are a problem in their community (though many call it a minor, not major, problem.) In the West, especially, Americans say its a major problem. Foreclosures in Your Community: All Northeast South Midwest 28% 17% 24% 29% 47 53 43 51 19 23 25 16

Major problem Minor problem Not problem

West 41% 44 10

Beyond jobs and unemployment, Americans dont rank the housing markets troubles as the nations other top economic problem inflation and the deficit top that list. What Should Be Done About Housing? Americans divide on some aspects of the governments role in improving the housing market. Overall, four in ten would like to see government do more, but three in ten say its doing enough right now. Government Help for Housing Market All Dems Reps 45% 50% 39% 30 38 21 16 5 31

Should do more Doing enough Should do less

Inds 45% 28 16

Pluralities of all partisans would prefer the government do more, though Republicans are the most likely to say government should do less. Slightly more, 53%, of Americans say the federal government should provide help to people who are having trouble paying their mortgages, while 40% disagree. Most Democrats agree, while Republicans and independents are mixed. Should Government Help People Having Mortgage Trouble? All Dems Reps Inds Yes 53% 63% 43% 50% No 40 27 49 45 Americans favor requiring prospective home buyers to put at least 20% down on a new mortgage 58% say so. Should Lenders Require Down Payment of at least 20%? Yes 58% No 36

Nine in ten say it is important to keep the mortgage interest deduction for taxpayers, including six in ten who call that very important. How Important is Keeping Mortgage Interest Tax Deduction? Very 63% Somewhat 30 Not important 5 Looking back, Americans dont blame the borrowers for the nations mortgage crisis they blame the lenders, and the regulators who were overseeing them. Democrats and Republicans agree. Who is to Blame for the Mortgage Crisis? All Dems Reps 42% 45% 43% 29 30 24 12 9 17 8 7 8

Lenders Regulators Borrowers All three (vol.)

Inds 39% 31 12 8

There is no agreement on whom if anyone should be eligible for subsidized home loans. About one quarter thinks no one should receive them; one-quarter think everyone should; and another quarter thinks only low-income people should qualify.

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This poll was conducted among a random sample of 979 adults nationwide, interviewed by telephone June 24-28, 2011. The error due to sampling for results based on the entire sample could be plus or minus three percentage points. The error for subgroups is higher. This poll release conforms to the Standards of Disclosure of the National Council on Public Polls.

CBS NEWS/NEW YORK TIMES POLL The Housing Market and the Impact of the Mortgage Crisis June 24-28, 2011 q14 Besides unemployment, which of the following national economic issues concerns you most ? 1. The federal budget deficit, 2. Rising prices, 3. Problems in the financial markets, or 4. Problems in the housing market? ************ TOTAL RESPONDENTS ************ ************* REGION ************* Total Northeast Midwest South West % % % % % 36 33 34 38 37 33 27 37 38 30 14 21 14 12 11 13 15 11 9 18 1 1 1 1 1 0 1 0 0 0 3 2 3 2 3

Federal budget deficit Rising prices Financial markets Housing market Other (vol.) Nothing (vol.) DK/NA q15-18 RELEASED SEPARATELY

q19 How important a part of the American dream is owning a home -- is it a very important part of the American dream, somewhat important, not too important, or not at all important? Very important Somewhat important Not too important Not at all important DK/NA q20-30 RELEASED SEPARATELY q31 How would you rate the housing market in your community for buying a home -- very good, fairly good, fairly bad or very bad? Very good Fairly good Fairly bad Very bad DK/NA 18 45 22 12 3 15 47 26 7 5 17 49 18 13 3 18 43 22 13 4 23 39 23 15 0 55 34 7 3 1 56 34 7 3 0 55 32 10 3 0 60 29 6 4 1 45 45 6 3 1

q32 How would you rate the housing market in your community for selling a home -- very good, fairly good, fairly bad or very bad? Very good Fairly good Fairly bad Very bad DK/NA 4 28 40 25 3 7 32 40 17 4 2 31 36 29 2 6 24 40 27 3 3 28 43 25 1

q33 In your community, are home foreclosures a major problem, a minor problem or not a problem at all? ************ TOTAL RESPONDENTS ************ ************* REGION ************* Total Northeast Midwest South West % % % % % Major 28 17 29 24 41 Minor 47 53 51 43 44 Not a problem 19 23 16 25 10 DK/NA 6 7 4 8 5

q34 These days, do you think buying a home is generally a safe investment or generally a risky investment? Total % 49 45 6 Homeowners % 57 37 6 Renters % 29 64 7

Generally safe Generally risky DK/NA

q35 Which do you think is the best long-term investment for the average American today: 1) The stock market, 2) A savings or money market account, 3) Buying a home, OR 4) An IRA or 401k? Stock market Savings/Money Market Home IRA or 401(k) DK/NA 5 22 26 41 6 5 17 31 40 7 6 30 14 43 7

q36 Who do you think is mostly to blame for the home mortgage crisis: 1) The borrowers who should not have taken out loans they might have trouble paying if interest rates went up, OR 2) The mortgage lenders who approved mortgages to people who might not be able to afford higher interest rates, OR 3) The regulators who were supposed to supervise the mortgage lending business and protect consumers? **** Party ID **** Rep Dem Ind % % % 17 9 12 43 45 39 24 30 31 2 0 1 8 7 8 4 7 7 2 2 2

Borrowers Lenders Regulators Other (vol.) All three (vol.) Combination (vol.) DK/NA q37 BLANK

Total % 12 42 29 1 8 6 2

Mar08a % 14 28 40 0 11 7 0

q38 In order to improve the housing market, do you think the federal government should or should not help people who are having trouble paying their mortgages? Should Should not DK/NA 53 40 7 43 49 8 63 27 10 50 45 5

q39 In general, do you think the government should be doing more to help the housing market improve, should it be doing less, or is the government doing the right amount? **** TOTAL RESPONDENTS **** **** Party ID **** Total Rep Dem Ind % % % % 45 39 50 45 16 31 5 16 30 21 38 28 9 9 7 11

More Less Right amount DK/NA

q40 In order to try to create more secure mortgage loans, do you think lenders should require home buyers to make a down payment of at least 20 percent, or should they not require that amount? Should require at least 20% Should not DK/NA 58 36 6 66 31 3 53 41 6 57 36 6

q41 Currently, homeowners can deduct the interest they pay on their mortgages from their federal income taxes. How important is it for the federal government to continue the home mortgage interest deduction -- very important, somewhat important, not very important, or not important at all? Very Somewhat Not very Not at all DK/NA 63 30 3 2 2 66 28 2 2 2 64 28 2 3 3 59 32 4 2 3

q42 Currently, Americans in all income groups are eligible for some kind of home mortgage loan subsidized by the federal government. Who do you think should receive home loans subsidized by the federal government: 1) All home buyers; 2) Only high-income home buyers; 3) Only middle-income home buyers; 4) Only low-income home buyers; OR 5) No one? All High-income Middle-income Lower-income No one Middle and low-income comb Other Combination (Vol.) DK/NA q43 Which best in the housing been difficult one way or the 24 1 15 26 22 6 1 5 19 0 21 18 34 2 2 4 21 2 12 37 15 6 1 6 29 2 13 23 20 9 0 4

describes the way you and your family have been affected by the downturn market? 1) It has been a hardship and caused major life changes, 2) It has but not caused any major life changes, or 3) It has not had much effect other. Total % 15 33 52 0 Homeowners % 10 35 55 0 Renters % 26 29 44 1

Hardship Difficult No effect DK/NA

q44 In general these days, do you think renting a home or owning a home makes more sense financially? Total % 29 62 7 2 Homeowners % 22 68 9 1 Renters % 47 45 5 3

Renting Owning Depends (vol.) DK/NA

q45 Some people have stopped paying their mortgages because their homes have lost much of their value and they want the mortgage holder to foreclose on the property. Do you think this is ever justified, or not?

Justified Not justified DK/NA q46 BLANK

28 66 6

27 67 6

30 64 6

q47 Do you currently rent your home, or do you own it with a mortgage, or is it entirely paid for? Rent Own with mortgage Entirely paid for Don't pay for housing (vol.) DK/NA 29 42 26 2 1 0 62 38 0 0 100 0 0 0 0

q48 Do you think what you are currently paying for housing is more than you can afford, about as much as you can afford, or could you afford more if you wanted? Mar08c % 13 56 25 6

More than can afford As much as can afford Could afford more DK/NA

12 55 26 7

8 57 28 7

21 54 24 1

q49 In the last 3 years, has it become easier to afford your mortgage payment, more difficult to afford your mortgage payment, or has there been no change? Own with mortgage % 14 40 46 0

Easier More difficult No change DK/NA

q50 In the last three years, have you missed making any mortgage payments because of financial hardship, or not? Yes No DK/NA 15 85 0

q51 Do you think your home is currently worth more than what you paid for it, worth less than what you paid for it, or worth about the same as what you paid for it? ***** HOMEOWNERS ***** Total Own w/ Fully Mortgage Paid % % % 50 46 56 25 29 18 24 24 24 1 1 2

More Less Same DK/NA

q52 Do you think your home is worth more than the amount you owe on your mortgage, worth less than the amount you owe on your mortgage, or worth about the same as what you owe on your mortgage? More Less Same DK/NA 58 22 19 1

q53 In the last three years, have you spent money on improvements to your home, or not? IF YES, ASK: Did you do routine repairs, minor updates, or major renovations? Yes, routine repairs Yes, minor updates Yes, major renovations Combination (Vol.) No DK/NA 21 34 20 8 17 0 21 35 22 7 15 0 22 32 17 9 20 0

q54 In the last three years, have you delayed selling your house because you are waiting for the housing market to improve, or are you not interested in selling your house now? Delayed selling house Don't want to sell DK/NA 10 88 2 14 85 1 5 92 3

q55 If your home were to lose much of its value, would you seriously consider stopping your mortgage payments and allowing foreclosure, or is this something you would not seriously consider? Seriously consider stopping Would not Depends (vol.) DK/NA 8 88 3 1

q56 Over the next ten years, do you expect the value of your home to increase, decrease or stay about the same? IF INCREASE OR DECREASE: Will it increase/decrease a lot, some, or not much? ***** HOMEOWNERS ***** Total Own w/ Fully Mortgage Paid % % % 8 9 6 46 50 40 6 6 7 2 2 1 3 4 2 1 1 2 30 27 36 4 1 6

Increase a lot Increase some Increase not much Decrease a lot Decrease some Decrease not much Stay about the same DK/NA

q57 How much has the downturn in the housing market affected your plans for your future - a lot, some, not much or not at all? ****** TOTAL RESPONDENTS ****** Total Homeowners Renters % % % 23 18 36 26 26 28 22 23 17 28 33 19 1 0 0

A lot Some Not much Not at all DK/NA

q58 How much are you relying on the value of your home in order to help finance your retirement -- a lot, some, not much or not at all? ***** HOMEOWNERS ***** Total Own w/ Fully Mortgage Paid % % % 11 12 9 18 19 16 21 23 16 50 45 57 0 1 2

A lot Some Not much Not at all DK/NA

q59 Has the downturn in the housing market prevented you from moving to another city or taking a different job, or not? ****** TOTAL RESPONDENTS ****** Total Homeowners Renters % % % 18 13 30 80 86 67 2 1 3

Has prevented Has not DK/NA

q60 If you were going to move now and could afford either, would you prefer to rent or to buy a home? Rent Buy DK/NA 23 73 4 17 79 4 37 59 4

q61 Regardless of whether you think you can afford it, would you like to own your own home one day, or would you prefer to continue renting? Renters % 85 13 2

Own Rent DK/NA q62-83 SEPARATE RELEASE

q84 How many years have you owned your current home? ***** HOMEOWNERS ***** Total Own w/ Fully Mortgage Paid % % % 3 4 1 12 15 7 13 15 9 25 29 19 47 36 63 0 1 1

Less than 1 year 1-3 years 4-5 years 6-10 years More than 10 years DK/NA

q85 Did you deduct the interest you paid on your mortgage on your 2010 federal income taxes, or not? Yes No DK/NA 78 16 6

q86 In the last 3 years, have you been threatened with foreclosure or eviction for not paying your mortgage or rent, or haven't you? IF YES, ASK: Did you lose your home, or didn't you? ****** TOTAL RESPONDENTS ****** Total Homeowners Renters % % % 2 1 5 5 4 7 93 95 87 0 0 1

Yes and lost home Yes didn't lose home No DK/NA

q87 In the last 3 years, has someone you know personally been threatened with foreclosure or eviction for not paying their mortgage or rent, or not? IF YES, ASK: Did they lose their home, or not? Yes and lost home Yes didn't lose home No DK/NA 34 16 48 2 29 17 51 3 46 14 40 0

Total Respondents Total Republicans Total Democrats Total Independents Total Renters Total Homeowners with Mortgage fully Paid

UNWEIGHTED 979 271 340 368 187 770 423 347

WEIGHTED

259 (26%) 326 (33%) 393 (41%) 287 666 412 254 (29%) (68%) (42%) (26%)