Fannie Mae Survey: Credit Concerns Worry Renters

Fifty-three percent of the nation's renters are being deterred from buying homes because of financing difficulties, including bad credit, a new Fannie Mae survey found. But only 23 percent of respondents think renting makes more sense than buying, showing that consumers' concerns about the economy and their jobs are rising.

Seventy-three percent of respondents said it would be difficult for them to get a home mortgage, and 33 percent said it was because of bad credit.

"Consumer spending, which accounts for about 70 percent of the economy, ground to a halt in the second quarter," said Doug Duncan, vice president and chief economist of Fannie Mae. "Consumers are more hesitant to take on additional financial commitments, and a setback to confidence means a setback to the recovery of the housing market."

A July Fannie Mae survey found that 70 percent of Americans think the economy is heading in the wrong direction, with just 35 percent thinking the economy will improve in the next year. It also found that 40 percent of the respondents reported significant increases in household expenses.