The recent improved employment statistics which included an acceleration in average hourly earnings and a reported increase in personal income (a March to April bump of 0.4 percent) were reflected in Fannie Mae's May National Housing Survey.   The share of survey respondents reporting a significant increase in their household income of the last 12 months climbed 4 percentage points to a near all-time high of 28 percent. Those expecting an improvement in their personal financial situation rose 1 point to 46 percent, the highest rate in at least a year.

While attitudes about personal finances were up in the survey the optimism did not carry through to the economy as a whole.  Those who think the economy is on the right track dropped 4 percentage points to 38 while the wrong track numbers rose 3 points to 52.

The outlook for housing market growth appears to be improving. Among those surveyed, the share who believe now is a good time to sell a home continued its steady climb, reaching an all-time survey high of 49 percent in May-six percentage points higher than at the same time last year. Those who think it is a good time to buy reversed the 3 point decline of the previous month, returning to 66 percent - the same percentage who said they would prefer to buy rather than rent a home on their next move, also a 3 point gain.  However those who think it would be easy to get a home mortgage decreased by 2 percentage points to 50 percent, while those who think it would be difficult remained at 46 percent.

Doug Duncan, senior vice president and chief economist at Fannie Mae said things are looking up for housing, citing the increases in those reporting growth in their income and those saying it was a good time to buy and sell.  "We have found that these two indicators - good time to sell and income growth - are key drivers for the performance of the housing market and play an important role in our soon to be released Home Purchase Sentiment Index^TM (HPSI). The increase in these indicators suggests our forecast of moderate improvement in the housing market in 2015 is on course and mirrors the near-term performance of other leading market data, including mortgage applications and pending home sales."

The share of respondents who expect house prices to increase over the next 12 months rose to 49 percent from 46 percent while expectations for the magnitude of any increase were unchanged at 2.8 percent. The share of respondents who say mortgage rates will go up in the next 12 months fell to 47 percent, a 5 point decline.

Fifty-five percent of respondents expect rents to increase over the next year.  Expectations for that increase averaged 4.3 percent compared to 4.1 percent in April.

Fannie Mae's National Housing Survey in conducted monthly by phone among 1,000 Americans to assess their attitudes toward owning and renting a home, home and rental price changes, homeownership distress, the economy, household finances, and overall consumer confidence.  Both homeowners and renters are asked more than 100 questions used to track attitudinal shifts.  The survey originated in June 2010.