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…
As inflation slowly cools, consumers are feeling a lot more secure in their personal finances. But when it comes to homebuying, they’re still in the dumps.
Leaders at Fannie Mae said the Home Purchase Sentiment Index increased by 4 points YOY in July as consumers responded positively to the job security and mortgage rate components.
When asked to describe their feeling about the housing market, consumers became much more pessimistic, however, with 82% reporting that it’s a “bad time to buy” a home. This is a record high, up from 78% in June and above the last all-time high in October 2022.
“While consumers are reporting confidence in the components related to their personal financial situations, it’s unlikely we’ll see…
Most consumers think the economy is on the “wrong track,” growing frustrated as they struggle against inflation and a slowing economy. Fannie Mae’s most recent Home Purchase Sentiment Index (HPSI) fell 3.4 points in June to its lowest reading in ten years, while a survey-high 81% of consumers reported they believe the economy is on “the wrong track.” The full index is down 14.9 points YOY. Four of its six components fell from the month prior. More Americans reported they are worried about losing their jobs in the next twelve months (+5%) and fewer reported their income has significantly increased in the past year (-1%.) For the first time in almost seven years, a plurality of respondents said they would…
Only 17% of consumers believe it’s a good time to purchase a home as rising interest rates and high home prices push many buyers out of the market, according to Fannie Mae’s Home Purchase Sentiment Index. The May HPSI fell by 0.3 points, remaining relatively steady, but continues to move closer to its 10-year low of 63, recorded in April 2020. The full index is down 11.8 points YOY. Affordability was the main concern of the consumers surveyed. The “Good Time to Buy” indicator dropped to a new low, with 79% of respondents saying it’s a bad time to buy a home. The majority of respondents also said they expect mortgage rates to continue rising in the next twelve months. A…
Consumer sentiment towards home buying fell in March, pushed down by rising interest rates and difficult conditions generally, according to Fannie Mae’s Home Purchase Sentiment Index. The HPSI decreased by 2.1 points to 73.2, with four of its six components down month-over-month. The full index is down 8.5 points YOY. In March, 69% of respondents said they expect mortgage rates to keep rising, a survey-high. At the same time, the “Good Time To Buy” component tanked to a survey low, with 73% saying it’s a bad time to buy. “This month, we also saw a survey-high share of consumers expecting their financial situations to worsen over the next year; this was especially true among current homeowners,” said Mark Palim, Fannie…
