Good Time To Buy

Rate Cooldown Boosts Consumer Optimism For 2024

Posted on by TMN Editor
The mortgage rate cooldown is giving Americans a somewhat rosier view of 2024’s housing market, sparking some optimism despite overall dour views about the state of buying and selling. That’s according to Fannie Mae’s Home Purchase Sentiment Index, which increased 2.9 points in December to a reading of 67.2. Though Americans generally see homebuying in a negative light, cooling rates pushed the “good time to buy” component of Fannie’s index up slightly month-over-month to 17%. That’s up from 14% in November, a survey low. The boost was the result of a record-high number of consumers saying they expect mortgage rates to fall in the next 12 months (31%).  “This significant shift in consumer expectations comes on the heels of the…

Consumer Sentiment Stuck Near Lows

Posted on by TMN Editor
Consumer sentiment is stuck in the pits as mortgage rates remain elevated. Fannie Mae’s Home Purchase Sentiment Index continues skimming its low-level plateau, increasing in August by 0.1 points to 66.9. The HPSI is up 4.9 points YOY. Half of the index’s six components rose from July while the others stayed stagnant, resulting in a net negative outlook. Only 18% of respondents say it’s a good time to buy a home. The share of respondents who say it’s a good time to sell rose, however, to 66%. Respondents largely believe that home prices will go up in the next 12 months (41%), though that number decreased by 2% from July. “Consumers remain pessimistic toward the housing market in general and…