Home Purchase Sentiment Down In April

Fannie Mae’s Home Purchase Sentiment Index is based on a monthly survey of Americans. The survey asks respondents whether they think now is a good time to buy or sell a home, where they think home prices and mortgage rates are headed, and how they feel about their financial situation and job prospects. According to the most recent results, rising mortgage rates have led to increased concern about housing affordability, which has caused a 5 percent drop in the number of participants who say they think now is a good time to buy. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says younger respondents were most likely to express concern about market conditions. “The current lack of entry-level supply and the rapid uptick in mortgage rates appear to be adversely impacting potential first-time home buyers in particular, evidenced by the larger share of younger respondents (aged 18 to 34) reporting that it’s a ‘bad time to buy a home,’” Duncan said. But while respondents expressed concern about affordability, the share who felt home prices will rise over the next 12 months dropped and a majority of respondents said they feel secure in their jobs and income. (source)

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