WASHINGTON(AP) --    Americans believe owning a home is the best investment they can make, although blacks and Hispanics still face obstacles to homeownership, according to a survey by mortgage giant Fannie Mae.

With interest rates at record low levels and a volatile stock market, 70% of those responding said they consider buying a home to be a safe and smart investment. Only 38% said an IRA or 401(k) retirement plan was a "safe investment with a lot of potential."

Fannie Mae's latest annual housing survey, released yesterday, showed a hefty 78% of respondents saying that now is a good or very good time to buy a home.

Despite the recent recession, many Americans have seen their net worth increase because of a rise in their home's value. The survey indicated that minorities and baby boomers are contributing strongly to home-buying demand.

Yet, the survey also suggested that many people, particularly minorities, "are not aware how easy and affordable it has become to buy a home," said Franklin Raines, Fannie Mae's chairman and chief executive officer. "Too many obstacles, such as knowledge about the process and saving for a down payment, continue to slow minorities on the path to homeownership."

Despite the increase in homeownership in recent years by blacks and Hispanics, many minorities seeking to become first-time buyers are stymied, Fannie Mae said. Blacks see more obstacles to buying a home than does the general population, according to the survey. Among black respondents, 32% said their credit rating would be a major obstacle to getting a mortgage, compared with 23% of all adults.

Job security, a growing worry for many Americans, is particularly so for blacks, of whom 27% said confidence thay have in their job security would be a major obstacle to buying a home.

Source: Fannie Mae (09/06/02)